Test Bank for Fundamental accounting principles 24th edition by John J wild and Shaw Chapters 1-26 Covered 2

TEST BANK FOR FUNDAMENTAL ACCOUN
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TING PRINCIPLES23RD EDITION BYWILD
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, Chapter 01 Accounting in Business
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MULTIPLEhCHOICEhQUESTIONS

1) Accountinghishanhinformationhandhmeasurementhsystemhthathidentifies,hrecords,handhcommunicatesh rel
evant,h reliable,h andh comparableh informationh abouth anh organization'sh businessh activities.
A) True
B) False
Answer:hAhExplan
ation:
Diff:h 1
Topic:h ImportancehofhAccounting
LearninghObjective:h 01-
C1hExplainhthehpurposehandhimportancehofhaccounting.hBloom's:hRemember
AACSB:hCommunication
AICPA:h BBhIndustry;hFNhDecisionhMaking


2) Recordkeeping,horhbookkeeping,hishthehrecordinghofhtransactionshandhevents,heitherhmanuallyhorh ele
ctronically.hThishishjusthonehparthofhaccounting.
A) True
B) False
Answer:hAhExplan
ation:
Diff:h 1
Topic:h ImportancehofhAccounting
LearninghObjective:h 01-
C1hExplainhthehpurposehandhimportancehofhaccounting.hBloom's:hRemember
AACSB:hCommunication
AICPA:h BBhIndustry;hFNhDecisionhMaking


3) Anhaccountinghsystemhcaptureshrelevanthdatahabouthtransactionshandhthenhclassifies,hrecords,handhre
portshdata.
A) True
B) False
Answer:hAhExplan
ation:
Diff:h 1
Topic:h ImportancehofhAccounting
LearninghObjective:h 01-
C1hExplainhthehpurposehandhimportancehofhaccounting.hBloom's:hRemember
AACSB:hCommunication
AICPA:h BBhIndustry;hFNhDecisionhMaking

,4) Financialhaccountinghishthehareahofhaccountinghaimedhathservinghexternalhusershbyhprovidinghthemhwit
hh general-purposeh financialh statements.
A) True
B) False
Answer:hAhExplan
ation:
Diff:h 1
Topic:h UsershofhAccountinghInformation
LearninghObjective:h 01-
C2hIdentifyhusershandhuseshof,handhopportunitieshin,haccounting.hBloom's:hRemember
AACSB:hCommunication
AICPA:h BBhIndustry;hFNhDecisionhMaking


5) Internalhoperatinghactivitieshincludehresearchhandhdevelopment,hdistribution,handhhumanhresources.
A) True
B) False
Answer:hAhExplan
ation:
Diff:h 1
Topic:h UsershofhAccountinghInformation
LearninghObjective:h 01-
C2hIdentifyhusershandhuseshof,handhopportunitieshin,haccounting.hBloom's:hRemember
AACSB:hCommunication
AICPA:h BBhIndustry;hFNhDecisionhMaking


6) Thehprimaryhobjectiveh ofhmanagerialhaccountinghishtohprovidehgeneralhpurposehfinancialhstatementsh to
hhelphexternalhusershanalyzehandhinterprethanhorganization'shactivities.


A) True
B) False
Answer:hBhExplan
ation:
Diff:h 1
Topic:h UsershofhAccountinghInformation
LearninghObjective:h 01-
C2hIdentifyhusershandhuseshof,handhopportunitieshin,haccounting.hBloom's:hRemember
AACSB:hCommunication
AICPA:h BBhIndustry;hFNhDecisionhMaking

, 7) Externalhauditorshexaminehfinancialhstatementshtohverifyhthaththeyharehpreparedhaccordinghtohge
nerallyhacceptedhaccountinghprinciples.
A) True
B) False
Answer:hAhExplan
ation:
Diff:h 1
Topic:h UsershofhAccountinghInformation
LearninghObjective:h 01-
C2hIdentifyhusershandhuseshof,handhopportunitieshin,haccounting.hBloom's:hRemember
AACSB:hCommunication
AICPA:h BBhIndustry;hFNhDecisionhMaking


8) Externalhusershincludehlenders,hshareholders,hcustomers,handhregulators.
A) True
B) False
Answer:hAhExplan
ation:
Diff:h 2
Topic:h UsershofhAccountinghInformation
LearninghObjective:h 01-
C2hIdentifyhusershandhuseshof,handhopportunitieshin,haccounting.hBloom's:hUnderstand
AACSB:hCommunication
AICPA:h BBhIndustry;hFNhDecisionhMaking


9) Regulatorshoftenhhavehlegalhauthorityhoverhcertainhactivitieshofhorganizations.
A) True
B) False
Answer:hAhExplan
ation:
Diff:h 1
Topic:h UsershofhAccountinghInformation
LearninghObjective:h 01-
C2hIdentifyhusershandhuseshof,handhopportunitieshin,haccounting.hBloom's:hRemember
AACSB:hCommunication
AICPA:h FNhDecisionhMaking;hBBhLegal