TEST BANK for Financial Accounting
b b b b
13th Editionb
by C William Thomas and Wendy M. Tietz
b b b b b b b
Verified Chapter's 1 - 12 | Complete
b b b b b b
,TABLE OF CONTENTS b b b
1. The Financial Statements
b b b
2. Transaction Analysis
b b
3. Accrual Accounting and Income
b b b b
4. Internal Control and Cash
b b b b
5. Receivables and Revenue
b b b
6. Inventory and Cost of Goods Sold
b b b b b b
7. Plant Assets, Natural Resources, and Intangibles
b b b b b b
8. Current and Contingent Liabilities
b b b b
9. Long-Term Liabilities
b b
10. Stockholders' Equity
b b
11. The Statement of Cash Flows
b b b b b
12. Financial Statement Analysis
b b b
,1. The Financial Statements
b b b
Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
b b b b b b b b b b b b b
Financial Accounting, 13e (Thomas/Tietz)b b b
Chapter 1 The Financial Statements
b b b
Learning Objective 1-1 b b
1) Accounting is an information system that measures business activities.
b b b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
2) Bookkeeping is a mechanical part of accounting.
b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
3) Accounting is often called the language of business.
b b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
4) Accounting produces financial statements, which report information about a business.
b b b b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement, Reporting
b b b
5) The accounting process begins and ends with people making decisions.
b b b b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
, 6) Accounting information is used by investors and creditors, but not by regulatory bodies.
b b b b b b b b b b b b
Answer: FALSE
b b
Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
b b b b b b b b b b b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Industry Sector, Legal/RegulatoryAICPA
b b b b b b
Functional: Measurement, Reporting
b b b
7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
b b b b b b b b b b b b b b b b b
accounting information.
b b
Answer: FALSE b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Industry Sector, Legal/RegulatoryAICPA
b b b b b b
Functional: Measurement, Reporting
b b b
8) The business records of a sole proprietorship should include the proprietor's personal finances.
b b b b b b b b b b b b
Answer: FALSE
b b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
9) A partnership is a taxpaying entity.
b b b b b
Answer: FALSE
b b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
10) Stockholders have no personal obligation for the corporation's debts. b b b b b b b b
Answer: TRUE
b b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
11) Accounting:
A) measures business activities. b b
B) processes data into reports and communicates the data to decision makers.
b b b b b b b b b b
C) is often called the language of business.
b b b b b b
D) is all of the above.
b b b b
Answer: D
b b
Diff: 2
b
LO: 1-1
b
b b b b
13th Editionb
by C William Thomas and Wendy M. Tietz
b b b b b b b
Verified Chapter's 1 - 12 | Complete
b b b b b b
,TABLE OF CONTENTS b b b
1. The Financial Statements
b b b
2. Transaction Analysis
b b
3. Accrual Accounting and Income
b b b b
4. Internal Control and Cash
b b b b
5. Receivables and Revenue
b b b
6. Inventory and Cost of Goods Sold
b b b b b b
7. Plant Assets, Natural Resources, and Intangibles
b b b b b b
8. Current and Contingent Liabilities
b b b b
9. Long-Term Liabilities
b b
10. Stockholders' Equity
b b
11. The Statement of Cash Flows
b b b b b
12. Financial Statement Analysis
b b b
,1. The Financial Statements
b b b
Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
b b b b b b b b b b b b b
Financial Accounting, 13e (Thomas/Tietz)b b b
Chapter 1 The Financial Statements
b b b
Learning Objective 1-1 b b
1) Accounting is an information system that measures business activities.
b b b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
2) Bookkeeping is a mechanical part of accounting.
b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
3) Accounting is often called the language of business.
b b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
4) Accounting produces financial statements, which report information about a business.
b b b b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement, Reporting
b b b
5) The accounting process begins and ends with people making decisions.
b b b b b b b b b
Answer: TRUE
b b
Diff: 1 b
LO: 1-1 b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
, 6) Accounting information is used by investors and creditors, but not by regulatory bodies.
b b b b b b b b b b b b
Answer: FALSE
b b
Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
b b b b b b b b b b b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Industry Sector, Legal/RegulatoryAICPA
b b b b b b
Functional: Measurement, Reporting
b b b
7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
b b b b b b b b b b b b b b b b b
accounting information.
b b
Answer: FALSE b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Industry Sector, Legal/RegulatoryAICPA
b b b b b b
Functional: Measurement, Reporting
b b b
8) The business records of a sole proprietorship should include the proprietor's personal finances.
b b b b b b b b b b b b
Answer: FALSE
b b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
9) A partnership is a taxpaying entity.
b b b b b
Answer: FALSE
b b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
10) Stockholders have no personal obligation for the corporation's debts. b b b b b b b b
Answer: TRUE
b b
Diff: 1
b
LO: 1-1
b
AACSB: Reflective Thinking
b b
AICPA Bus Persp: Legal/Regulatory
b b b
AICPA Functional: Measurement
b b b
11) Accounting:
A) measures business activities. b b
B) processes data into reports and communicates the data to decision makers.
b b b b b b b b b b
C) is often called the language of business.
b b b b b b
D) is all of the above.
b b b b
Answer: D
b b
Diff: 2
b
LO: 1-1
b
