College Accounting Chapters 127 22e James A Heintz Robert W Parry

,Chapter 1—Introduction to Accounting

1. The purpose of accounting is to provide financial information about the current operations and financial conditions of a
business to individuals and organizations.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.01 - LO 1-1
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.

2. Since financial information is communicated in accounting terms, accounting is said to be the "language of business."
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.01 - LO 1-1
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.

3. ​Interpreting refers to reviewing events that have taken place and determining how they affect a business.

a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.02 - LO 1-2
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.



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,Chapter 1—Introduction to Accounting

4. A partnership is owned by stockholders or shareholders and is managed by them.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.04 - LO 1-4
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-03-Business Forms
KEYWORDS: Bloom's: Understanding
NOTES: 1 min.

5. A business that makes a product to sell is called a manufacturing business.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.05 - LO 1-5
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-03-Business Forms
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.

6. A public accountant can achieve professional recognition as a Certified Public Accountant by meeting certain
educational and experience requirements as determined by each state.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.06 - LO 1-6
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom's: Understanding
NOTES: 1 min.




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, Chapter 1—Introduction to Accounting

7. The six major steps of the accounting process are analyzing, recording, classifying, summarizing, reporting, and
interpreting.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.02 - LO 1-2
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.

8. Generally accepted accounting principles are procedures and guidelines to be followed in the accounting/reporting
process.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.03 - LO 1-3
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-02-GAAP
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.

9. Accountants design accounting information systems and analyze and interpret information.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.06 - LO 1-6
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom's: Understanding
NOTES: 1 min.



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