TEST BANK
** All Chapters included
** True/False QAs
** MCQs
,Table of Contents are given below
Chapter 1. Introduction to Accounting and Business
Chapter 2. Analyzing Transactions
Chapter 3. The Adjusting Process
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Businesses
Chapter 6. Inventories
Chapter 7. Internal Control and Cash
Chapter 8. Receivables
Chapter 9. Long-Term Operating Assets
Chapter 10. Liabilities: Current, Notes, and Contingencies
Chapter 11. Liabilities: Bonds Payable
Chapter 12. Accounting for Partnerships and Limited Liability Companies
Chapter 13. Corporations: Organization, Stock Transactions, and Dividends
Chapter 14. Statement of Cash Flows
Chapter 15. Financial Statement Analysis
,Name: Class: Date:
Chap 01 18e - Warren
Indicate whether the statement is true or false.
1. Any 12-month accounting period adopted by a company is known as its fiscal year.
a. True
b. False
ANSWER: True
2. Managerial accounting information is used by external and internal users equally.
a. True
b. False
ANSWER: False
3. If the liabilities owed by a business total $300,000 and owner's equity is equal to $300,000, then the assets also
total $300,000.
a. True
b. False
ANSWER: False
4. The role of accounting is to provide many different users with financial information to make economic decisions.
a. True
b. False
ANSWER: True
5. Paying an account payable increases liabilities and decreases assets.
a. True
b. False
ANSWER: False
6. Withdrawals paid to owners decrease assets and increase equity.
a. True
b. False
ANSWER: False
7. The balance sheet represents the accounting equation.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
, Name: Class: Date:
Chap 01 18e - Warren
8. Generally accepted accounting principles regulate how and what financial information is reported by businesses.
a. True
b. False
ANSWER: True
9. The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.
a. True
b. False
ANSWER: True
10. Some major fraudulent acts committed by senior executives started as what they considered to be small ethical
lapses that grew out of control.
a. True
b. False
ANSWER: True
11. The Financial Accounting Standards Board (FASB) is the authoritative body that has primary responsibility for
developing accounting principles.
a. True
b. False
ANSWER: True
12. The majority of businesses end their fiscal year on December 31.
a. True
b. False
ANSWER: True
13. Senior executives can be criminally prosecuted for the wrongdoings they commit on behalf of the companies
where they work.
a. True
b. False
ANSWER: True
14. The statement of cash flows consists of three sections: cash flows from operating activities, cash flows from
income activities, and cash flows from equity activities.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 2
** All Chapters included
** True/False QAs
** MCQs
,Table of Contents are given below
Chapter 1. Introduction to Accounting and Business
Chapter 2. Analyzing Transactions
Chapter 3. The Adjusting Process
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Businesses
Chapter 6. Inventories
Chapter 7. Internal Control and Cash
Chapter 8. Receivables
Chapter 9. Long-Term Operating Assets
Chapter 10. Liabilities: Current, Notes, and Contingencies
Chapter 11. Liabilities: Bonds Payable
Chapter 12. Accounting for Partnerships and Limited Liability Companies
Chapter 13. Corporations: Organization, Stock Transactions, and Dividends
Chapter 14. Statement of Cash Flows
Chapter 15. Financial Statement Analysis
,Name: Class: Date:
Chap 01 18e - Warren
Indicate whether the statement is true or false.
1. Any 12-month accounting period adopted by a company is known as its fiscal year.
a. True
b. False
ANSWER: True
2. Managerial accounting information is used by external and internal users equally.
a. True
b. False
ANSWER: False
3. If the liabilities owed by a business total $300,000 and owner's equity is equal to $300,000, then the assets also
total $300,000.
a. True
b. False
ANSWER: False
4. The role of accounting is to provide many different users with financial information to make economic decisions.
a. True
b. False
ANSWER: True
5. Paying an account payable increases liabilities and decreases assets.
a. True
b. False
ANSWER: False
6. Withdrawals paid to owners decrease assets and increase equity.
a. True
b. False
ANSWER: False
7. The balance sheet represents the accounting equation.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 1
, Name: Class: Date:
Chap 01 18e - Warren
8. Generally accepted accounting principles regulate how and what financial information is reported by businesses.
a. True
b. False
ANSWER: True
9. The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.
a. True
b. False
ANSWER: True
10. Some major fraudulent acts committed by senior executives started as what they considered to be small ethical
lapses that grew out of control.
a. True
b. False
ANSWER: True
11. The Financial Accounting Standards Board (FASB) is the authoritative body that has primary responsibility for
developing accounting principles.
a. True
b. False
ANSWER: True
12. The majority of businesses end their fiscal year on December 31.
a. True
b. False
ANSWER: True
13. Senior executives can be criminally prosecuted for the wrongdoings they commit on behalf of the companies
where they work.
a. True
b. False
ANSWER: True
14. The statement of cash flows consists of three sections: cash flows from operating activities, cash flows from
income activities, and cash flows from equity activities.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 2
