TEST BANK FOR
g g
SurveygofgAccounting,g7thgEditiongbygEdmonds
Chapterg1-16
AnswersgIncluded ✅
Chapg01g7egEdmonds
1) Whichgofgthegfollowingggroupsghasgthegprimarygresponsibilitygforgestablishingggenerall
ygacceptedgaccountinggprinciplesgforgbusinessgentitiesgingthegUnitedgStates?
A) SecuritiesgandgExchangegCommission
B) U.S.gCongress
C) InternationalgAccountinggStandardsgBoard
D) FinancialgAccountinggStandardsgBoard
2) ThegHeritagegCompanygisgagmanufacturergofgofficegfurniture.gWhichgtermgbestgdescribe
sgHeritage'sgrolegingsociety?
A) Business
B) Regulatorygagency
C) Consumer
D) Resourcegowner
3) Whichgresourcegprovidersglendgfinancialgresourcesgtogagbusinessgwithgthegexpectationgo
fgrepaymentgwithginterest?
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Whichgtypegofgaccountingginformationgisgintendedgtogsatisfygthegneedsgofgexternalgusersg
ofgaccountingginformation?
A) Costgaccounting
B) Managerialgaccounting
C) Taxgaccounting
D) Financialgaccounting
5) Whichgofgthegfollowinggisgfalsegregardinggmanagerialgaccountingginformation?
A) Itgisgoftengusedgbyginvestors.
B) Itgisgmoregdetailedgthangfinancialgaccountingginformation.
C) Itgcangincludegnonfinancialginformation.
D) Itgfocusesgongdivisionalgrathergthangoverallgprofitability.
,6) FinancialgaccountinggstandardsgaregknowngcollectivelygasgGAAP.gWhatgdoesgthatgacrony
mgstandgfor?
A) GenerallygAcceptedgAccountinggPrinciples
B) GenerallygAppliedgAccountinggProcedures
C) GovernmentallygApprovedgAccountinggPractices
D) GenerallygAuthorizedgAuditinggPrinciples
7) InternationalgaccountinggstandardsgaregformulatedgbygthegIASB.gWhatgdoesgthatgacrony
mgstandgfor?
A) InternationallygAcceptedgStandardsgBoard
B) InternationalgAccountinggStandardsgBoard
C) InternationalgAccountabilitygStandardsgBureau
D) InternationalgAccountinggandgSustainabilitygBoard
8) JackgHenrygborrowedg$800,000gfromgWaltgBankgtogopengagnewgbikegstoregcalledgWooden
gWheels.gJackgtransferredg$650,000gofgthegcashgthatghegborrowedgtogthegstoregongthegfirstgd
aygofgthegyear.gHowgmanygreportinggentitiesgexistgingthisgscenario?
A) Onegreportinggentity
B) Twogreportinggentities
C) Threegreportinggentities
D) Fourgreportinggentities
,9) JackgHenrygborrowedg$800,000gfromgWaltgBankgtogopengagnewgbikegstoregcalledgWoodeng
Wheels.gJackgtransferredg$650,000gofgthegcashghegborrowedgtogWoodengWheelsgongthegfirs
tgdaygofgthegyear.gWhichgofgthegfollowinggappropriatelygreflectsgthegcashgtransactionsgbetwe
engthesegreportinggentities?
Option JackgHenry WoodengWheels WaltgBank
A. $ 150,000gincrease $g650,000 $g800,000
increase decrease
B. $ 800,000gincrease $g650,000 $g150,000
increase decrease
C. $ 800,000gdecrease $g800,000 $g650,000
increase decrease
D. $ 650,000gincrease $g150,000 $g800,000
increase decrease
A) OptiongA
B) OptiongB
C) OptiongC
D) OptiongD
10) EllengGatsbygandghergsiblings,gBengandgSarah,gstartedgGatsbygCompanygwhengtheygeac
hginvestedg$100,000gingthegcompany.gAftergtheginvestmentsgtheregwillgbe
A) onegreportinggentity.
B) twogreportinggentities.
C) threegreportinggentities.
D) fourgreportinggentities.
11) JohngHamiltongborrowedg$528,000gfromgStonegCreekgBankgtogopengagnewgrestaurantgcalled
gSauce-It-
Up.gJohngtransferredg$475,200gofgthegcashghegborrowedgtogthegrestaurantgongthegfirstgdaygofg
thegyear.gHowgmanygreportinggentitiesgexistgingthisgscenario?
A) Twogreportinggentities
B) Threegreportinggentities
C) Onegreportinggentity
D) Fourgreportinggentities
, 12) JohngHamiltongborrowedg$540,000gfromgStonegCreekgBankgtogopengagnewgrestaurantgcalle
dgSauce-It-
Up.gJohngtransferredg$486,000gofgthegcashghegborrowedgtogthegCompanygongthegfirstgdaygofg
thegyear.gWhichgofgthegfollowinggappropriatelygreflectsgthegcashgtransactionsgbetweengthese
greportinggentities?
JohngHamilton Sauce-It-Up StonegCreekgBank
A. $g54,000g increase $g486,000g increase $g540,000g decrease
B. $g540,000g increase $g486,000g increase $g540,000g decrease
C. $g540,000g decrease $g540,000g increase $g540,000g decrease
D. $g486,000g increase $g54,000g increase $g540,000g decrease
A) OptiongA
B) OptiongB
C) OptiongC
D) OptiongD
13) Whichgofgthegfollowinggisgangaccurategdefinitiongofgthegtermg“asset?”
A) Angobligationgtogcreditors
B) Agresourcegthatgwillgbegusedgtogproducegrevenue
C) Agtransfergofgwealthgfromgthegbusinessgtogitsgstockholders
D) Agsacrificegincurredgfromgoperatinggthegbusiness
14) Whichgofgthegfollowinggisg(are)gsource(s)gofgassetsgtogagbusiness?
A) Creditors
B) Investors
C) Operations
D) Allgtheganswersgrepresentgsourcesgofgassets.
15) Ifgtotalgassetsgdecrease,gthengwhichgofgthegfollowinggstatementsgisgtrue?
A) Liabilitiesgmustgincreasegandgretainedgearningsgmustgdecrease.
B) Commongstockgmustgdecreasegandgretainedgearningsgmustgincrease.
C) Liabilities,gcommongstock,gorgretainedgearningsgmustgdecrease.
D) Liabilities,gcommongstock,gorgretainedgearningsgmustgincrease.
g g
SurveygofgAccounting,g7thgEditiongbygEdmonds
Chapterg1-16
AnswersgIncluded ✅
Chapg01g7egEdmonds
1) Whichgofgthegfollowingggroupsghasgthegprimarygresponsibilitygforgestablishingggenerall
ygacceptedgaccountinggprinciplesgforgbusinessgentitiesgingthegUnitedgStates?
A) SecuritiesgandgExchangegCommission
B) U.S.gCongress
C) InternationalgAccountinggStandardsgBoard
D) FinancialgAccountinggStandardsgBoard
2) ThegHeritagegCompanygisgagmanufacturergofgofficegfurniture.gWhichgtermgbestgdescribe
sgHeritage'sgrolegingsociety?
A) Business
B) Regulatorygagency
C) Consumer
D) Resourcegowner
3) Whichgresourcegprovidersglendgfinancialgresourcesgtogagbusinessgwithgthegexpectationgo
fgrepaymentgwithginterest?
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Whichgtypegofgaccountingginformationgisgintendedgtogsatisfygthegneedsgofgexternalgusersg
ofgaccountingginformation?
A) Costgaccounting
B) Managerialgaccounting
C) Taxgaccounting
D) Financialgaccounting
5) Whichgofgthegfollowinggisgfalsegregardinggmanagerialgaccountingginformation?
A) Itgisgoftengusedgbyginvestors.
B) Itgisgmoregdetailedgthangfinancialgaccountingginformation.
C) Itgcangincludegnonfinancialginformation.
D) Itgfocusesgongdivisionalgrathergthangoverallgprofitability.
,6) FinancialgaccountinggstandardsgaregknowngcollectivelygasgGAAP.gWhatgdoesgthatgacrony
mgstandgfor?
A) GenerallygAcceptedgAccountinggPrinciples
B) GenerallygAppliedgAccountinggProcedures
C) GovernmentallygApprovedgAccountinggPractices
D) GenerallygAuthorizedgAuditinggPrinciples
7) InternationalgaccountinggstandardsgaregformulatedgbygthegIASB.gWhatgdoesgthatgacrony
mgstandgfor?
A) InternationallygAcceptedgStandardsgBoard
B) InternationalgAccountinggStandardsgBoard
C) InternationalgAccountabilitygStandardsgBureau
D) InternationalgAccountinggandgSustainabilitygBoard
8) JackgHenrygborrowedg$800,000gfromgWaltgBankgtogopengagnewgbikegstoregcalledgWooden
gWheels.gJackgtransferredg$650,000gofgthegcashgthatghegborrowedgtogthegstoregongthegfirstgd
aygofgthegyear.gHowgmanygreportinggentitiesgexistgingthisgscenario?
A) Onegreportinggentity
B) Twogreportinggentities
C) Threegreportinggentities
D) Fourgreportinggentities
,9) JackgHenrygborrowedg$800,000gfromgWaltgBankgtogopengagnewgbikegstoregcalledgWoodeng
Wheels.gJackgtransferredg$650,000gofgthegcashghegborrowedgtogWoodengWheelsgongthegfirs
tgdaygofgthegyear.gWhichgofgthegfollowinggappropriatelygreflectsgthegcashgtransactionsgbetwe
engthesegreportinggentities?
Option JackgHenry WoodengWheels WaltgBank
A. $ 150,000gincrease $g650,000 $g800,000
increase decrease
B. $ 800,000gincrease $g650,000 $g150,000
increase decrease
C. $ 800,000gdecrease $g800,000 $g650,000
increase decrease
D. $ 650,000gincrease $g150,000 $g800,000
increase decrease
A) OptiongA
B) OptiongB
C) OptiongC
D) OptiongD
10) EllengGatsbygandghergsiblings,gBengandgSarah,gstartedgGatsbygCompanygwhengtheygeac
hginvestedg$100,000gingthegcompany.gAftergtheginvestmentsgtheregwillgbe
A) onegreportinggentity.
B) twogreportinggentities.
C) threegreportinggentities.
D) fourgreportinggentities.
11) JohngHamiltongborrowedg$528,000gfromgStonegCreekgBankgtogopengagnewgrestaurantgcalled
gSauce-It-
Up.gJohngtransferredg$475,200gofgthegcashghegborrowedgtogthegrestaurantgongthegfirstgdaygofg
thegyear.gHowgmanygreportinggentitiesgexistgingthisgscenario?
A) Twogreportinggentities
B) Threegreportinggentities
C) Onegreportinggentity
D) Fourgreportinggentities
, 12) JohngHamiltongborrowedg$540,000gfromgStonegCreekgBankgtogopengagnewgrestaurantgcalle
dgSauce-It-
Up.gJohngtransferredg$486,000gofgthegcashghegborrowedgtogthegCompanygongthegfirstgdaygofg
thegyear.gWhichgofgthegfollowinggappropriatelygreflectsgthegcashgtransactionsgbetweengthese
greportinggentities?
JohngHamilton Sauce-It-Up StonegCreekgBank
A. $g54,000g increase $g486,000g increase $g540,000g decrease
B. $g540,000g increase $g486,000g increase $g540,000g decrease
C. $g540,000g decrease $g540,000g increase $g540,000g decrease
D. $g486,000g increase $g54,000g increase $g540,000g decrease
A) OptiongA
B) OptiongB
C) OptiongC
D) OptiongD
13) Whichgofgthegfollowinggisgangaccurategdefinitiongofgthegtermg“asset?”
A) Angobligationgtogcreditors
B) Agresourcegthatgwillgbegusedgtogproducegrevenue
C) Agtransfergofgwealthgfromgthegbusinessgtogitsgstockholders
D) Agsacrificegincurredgfromgoperatinggthegbusiness
14) Whichgofgthegfollowinggisg(are)gsource(s)gofgassetsgtogagbusiness?
A) Creditors
B) Investors
C) Operations
D) Allgtheganswersgrepresentgsourcesgofgassets.
15) Ifgtotalgassetsgdecrease,gthengwhichgofgthegfollowinggstatementsgisgtrue?
A) Liabilitiesgmustgincreasegandgretainedgearningsgmustgdecrease.
B) Commongstockgmustgdecreasegandgretainedgearningsgmustgincrease.
C) Liabilities,gcommongstock,gorgretainedgearningsgmustgdecrease.
D) Liabilities,gcommongstock,gorgretainedgearningsgmustgincrease.
