,
, Survey of Accounting, 7th Edition by Edmonds, Olds Test Bank
Answers Included
Chap 01 7e Edmonds
1) Whichllofllthellfollowingllgroupsllhasllthellprimaryllresponsibilityllforllestablishingllgenerally
acceptedllaccountingllprinciplesllforllbusinessllentitiesllinllthellUnitedllStates?
ll
A) SecuritiesllandllExchangellCommission
B) U.S.llCongress
C) InternationalllAccountingllStandardsllBoard
D) FinancialllAccountingllStandardsllBoard
2) ThellHeritagellCompanyllisllallmanufacturerllofllofficellfurniture.llWhichlltermllbestlldescribes
Heritage'sllrolellinllsociety?
ll
A) Business
B) Regulatoryllagency
C) Consumer
D) Resourcellowner
3) Whichllresourcellproviderslllendllfinancialllresourceslltollallbusinessllwithllthellexpectationllof
repaymentllwithllinterest?
ll
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Whichlltypellofllaccountingllinformationllisllintendedlltollsatisfyllthellneedsllofllexternalllusersllo
fllaccountingllinformation?
A) Costllaccounting
B) Managerialllaccounting
C) Taxllaccounting
D) Financialllaccounting
5) Whichllofllthellfollowingllisllfalsellregardingllmanagerialllaccountingllinformation?
A) Itllislloftenllusedllbyllinvestors.
B) Itllisllmorelldetailedllthanllfinancialllaccountingllinformation.
C) Itllcanllincludellnonfinancialllinformation.
D) Itllfocusesllonlldivisionalllratherllthanlloverallllprofitability.
1
, 6) FinancialllaccountingllstandardsllarellknownllcollectivelyllasllGAAP.llWhatlldoesllthatllacronym
standllfor?
ll
A) GenerallyllAcceptedllAccountingllPrinciples
B) GenerallyllAppliedllAccountingllProcedures
C) GovernmentallyllApprovedllAccountingllPractices
D) GenerallyllAuthorizedllAuditingllPrinciples
7) InternationalllaccountingllstandardsllarellformulatedllbyllthellIASB.llWhatlldoesllthatllacronym
standllfor?
ll
A) InternationallyllAcceptedllStandardsllBoard
B) InternationalllAccountingllStandardsllBoard
C) InternationalllAccountabilityllStandardsllBureau
D) InternationalllAccountingllandllSustainabilityllBoard
8) JackllHenryllborrowedll$800,000llfromllWaltllBanklltollopenllallnewllbikellstorellcalledllWoodenll
Wheels.llJacklltransferredll$650,000llofllthellcashllthatllhellborrowedlltollthellstorellonllthellfirstllda
yllofllthellyear.llHowllmanyllreportingllentitiesllexistllinllthisllscenario?
A) Onellreportingllentity
B) Twollreportingllentities
C) Threellreportingllentities
D) Fourllreportingllentities
2
, Survey of Accounting, 7th Edition by Edmonds, Olds Test Bank
Answers Included
Chap 01 7e Edmonds
1) Whichllofllthellfollowingllgroupsllhasllthellprimaryllresponsibilityllforllestablishingllgenerally
acceptedllaccountingllprinciplesllforllbusinessllentitiesllinllthellUnitedllStates?
ll
A) SecuritiesllandllExchangellCommission
B) U.S.llCongress
C) InternationalllAccountingllStandardsllBoard
D) FinancialllAccountingllStandardsllBoard
2) ThellHeritagellCompanyllisllallmanufacturerllofllofficellfurniture.llWhichlltermllbestlldescribes
Heritage'sllrolellinllsociety?
ll
A) Business
B) Regulatoryllagency
C) Consumer
D) Resourcellowner
3) Whichllresourcellproviderslllendllfinancialllresourceslltollallbusinessllwithllthellexpectationllof
repaymentllwithllinterest?
ll
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Whichlltypellofllaccountingllinformationllisllintendedlltollsatisfyllthellneedsllofllexternalllusersllo
fllaccountingllinformation?
A) Costllaccounting
B) Managerialllaccounting
C) Taxllaccounting
D) Financialllaccounting
5) Whichllofllthellfollowingllisllfalsellregardingllmanagerialllaccountingllinformation?
A) Itllislloftenllusedllbyllinvestors.
B) Itllisllmorelldetailedllthanllfinancialllaccountingllinformation.
C) Itllcanllincludellnonfinancialllinformation.
D) Itllfocusesllonlldivisionalllratherllthanlloverallllprofitability.
1
, 6) FinancialllaccountingllstandardsllarellknownllcollectivelyllasllGAAP.llWhatlldoesllthatllacronym
standllfor?
ll
A) GenerallyllAcceptedllAccountingllPrinciples
B) GenerallyllAppliedllAccountingllProcedures
C) GovernmentallyllApprovedllAccountingllPractices
D) GenerallyllAuthorizedllAuditingllPrinciples
7) InternationalllaccountingllstandardsllarellformulatedllbyllthellIASB.llWhatlldoesllthatllacronym
standllfor?
ll
A) InternationallyllAcceptedllStandardsllBoard
B) InternationalllAccountingllStandardsllBoard
C) InternationalllAccountabilityllStandardsllBureau
D) InternationalllAccountingllandllSustainabilityllBoard
8) JackllHenryllborrowedll$800,000llfromllWaltllBanklltollopenllallnewllbikellstorellcalledllWoodenll
Wheels.llJacklltransferredll$650,000llofllthellcashllthatllhellborrowedlltollthellstorellonllthellfirstllda
yllofllthellyear.llHowllmanyllreportingllentitiesllexistllinllthisllscenario?
A) Onellreportingllentity
B) Twollreportingllentities
C) Threellreportingllentities
D) Fourllreportingllentities
2
