YTREWQ
TEST BANK FOR
Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
Financial Accounting, 13e (Thomas/Tietz)
Chapter 1 The Financial Statements
Learning Objective 1-1
1) Accounting is an information system that measures business activities.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
2) Bookkeeping is a mechanical part of accounting.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3) Accounting is often called the language of business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
4) Accounting produces financial statements, which report information about a business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
5) The accounting process begins and ends with people making decisions.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
YTREWS
, YTREWQ
6) Accounting information is used by investors and creditors, but not by regulatory bodies.
Answer: FALSE
Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Industry Sector, Legal/Regulatory
AICPA Functional: Measurement, Reporting
n, ahol átlátható és magas színvonalú tanulási anyagokat találsz. Ahogyan az alkimista arannyá
változtatja
7) Since az alapanyagokat,
Habitat minot
for Humanity is azconcerned
összetettabout
témákat könnyen
making érthető
a profit, the entity jegyzetekké,
does not need torendezett
use
accounting information.
összefoglalókká és vizsgaközpontú útmutatókká alakítjuk. Minden dokumentum gondosan
Answer: FALSE
szerkesztett,
Diff: 1
naprakész és időtakarékos megoldásokat kínál.
LO: 1-1
Anyagaink
AACSB: pontosak, részletesek és világos megfogalmazásúak, így még a nehezebb témák is
Reflective Thinking
érthetővé válnak. LegyenSector,
AICPA Bus Persp: Industry szó vizsgafelkészülésről
Legal/Regulatory vagy beadandó feladatról, nálunk megbízható
segítséget találsz.
AICPA Functional: Measurement, Reporting
8) The business records of a sole proprietorship should include the proprietor's personal finances.
A The_Alchemist segítségével a tanulás hatékonyabbá és tudatosabbá válik — mert a siker nem
Answer: FALSE
varázslat,
Diff: 1
hanem jól felépített felkészülés.
LO: 1-1
•••• Slovak
AACSB:
Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
The_Alchemist je váš
AICPA Functional: spoľahlivý
Measurement obchod na Stuvia, ktorý ponúka kvalitné a prehľadné študijné
materiály. Ako alchymista premieňame zložité témy na jasné poznámky, systematické zhrnutia a
9) A partnership is a taxpaying entity.
praktické sprievodcov k skúškam. Každý dokument je starostlivo pripravený, aktuálny a navrhnutý
Answer: FALSE
tak, Diff:
aby1vám šetril čas a zlepšoval výsledky.
LO: 1-1
Materiály
AACSB:sú vytvorené
Reflective s dôrazom na presnosť, zrozumiteľnosť a logickú štruktúru. Pomáhajú lepšie
Thinking
pochopiť náročné učivo a uľahčujú prípravu na testy či projekty.
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
10) Stockholders have no personal obligation for the corporation's debts.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
11) Accounting:
A) measures business activities.
B) processes data into reports and communicates the data to decision makers.
C) is often called the language of business.
D) is all of the above.
Answer: D
Diff: 2
LO: 1-1
YTREWS
, YTREWQ
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
12) A disadvantage of general partnerships is:
A) double taxation of distributed profits.
B) the partnership's assets are commingled with each partner's personal assets.
C) only individuals can be partners.
D) each partner may conduct business in the name of the entity and make agreements that legally bind
all partners.
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
13) Which of the following statements is TRUE for a limited liability company?
A) Members have unlimited liability for the debts of the business.
B) Members have limited liability for debts only up to the extent of their investment in the LLC.
C) The owners have unlimited liability for the debts of the business.
D) Members are not taxed like members of a partnership.
Answer: B
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
14) Which of the following statements is TRUE for a limited liability partnership?
A) All partners have limited liability for the debts of the partnership.
B) All the partners are considered to be limited partners.
C) The general partner has unlimited liability for the debts of the partnership.
D) The limited partners have unlimited liability for the debts of the partnership.
Answer: C
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
15) Which of the following statements is TRUE for a proprietorship?
A) Legally, a proprietorship is separate from the proprietor.
B) For accounting purposes, a proprietorship is separate from the proprietor.
C) The business records include the proprietor's personal finances.
D) All statements are correct.
Answer: B
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
YTREWS
, YTREWQ
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
16) Federal income taxes are paid by the in a limited liability company.
A) company
B) limited partners only
C) general partners only
D) members
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
17) Which of the following statements is TRUE for a limited liability partnership?
A) The partnership pays no federal income taxes.
B) Only the limited partners pay federal income taxes on their shares of the partnership's profits.
C) Only the general partner pays federal income taxes on his or her share of the partnership's profits.
D) Only the members pay federal income taxes on their shares of the partnership's profits.
Answer: A
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
18) Which statement is TRUE about partnerships?
A) A partnership is a taxpaying entity.
B) General partnerships have mutual agency and limited liability.
C) Individuals, corporations, partnerships, or other types of entities can be partners.
D) A written partnership contract must exist.
Answer: C
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
19) Which of the following have unlimited liability for a company's debts?
A) owners of a corporation
B) members of a limited liability company
C) limited partners in a limited liability partnership
D) general partner in a limited liability partnership
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
YTREWS
TEST BANK FOR
Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
Financial Accounting, 13e (Thomas/Tietz)
Chapter 1 The Financial Statements
Learning Objective 1-1
1) Accounting is an information system that measures business activities.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
2) Bookkeeping is a mechanical part of accounting.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3) Accounting is often called the language of business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
4) Accounting produces financial statements, which report information about a business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
5) The accounting process begins and ends with people making decisions.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
YTREWS
, YTREWQ
6) Accounting information is used by investors and creditors, but not by regulatory bodies.
Answer: FALSE
Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Industry Sector, Legal/Regulatory
AICPA Functional: Measurement, Reporting
n, ahol átlátható és magas színvonalú tanulási anyagokat találsz. Ahogyan az alkimista arannyá
változtatja
7) Since az alapanyagokat,
Habitat minot
for Humanity is azconcerned
összetettabout
témákat könnyen
making érthető
a profit, the entity jegyzetekké,
does not need torendezett
use
accounting information.
összefoglalókká és vizsgaközpontú útmutatókká alakítjuk. Minden dokumentum gondosan
Answer: FALSE
szerkesztett,
Diff: 1
naprakész és időtakarékos megoldásokat kínál.
LO: 1-1
Anyagaink
AACSB: pontosak, részletesek és világos megfogalmazásúak, így még a nehezebb témák is
Reflective Thinking
érthetővé válnak. LegyenSector,
AICPA Bus Persp: Industry szó vizsgafelkészülésről
Legal/Regulatory vagy beadandó feladatról, nálunk megbízható
segítséget találsz.
AICPA Functional: Measurement, Reporting
8) The business records of a sole proprietorship should include the proprietor's personal finances.
A The_Alchemist segítségével a tanulás hatékonyabbá és tudatosabbá válik — mert a siker nem
Answer: FALSE
varázslat,
Diff: 1
hanem jól felépített felkészülés.
LO: 1-1
•••• Slovak
AACSB:
Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
The_Alchemist je váš
AICPA Functional: spoľahlivý
Measurement obchod na Stuvia, ktorý ponúka kvalitné a prehľadné študijné
materiály. Ako alchymista premieňame zložité témy na jasné poznámky, systematické zhrnutia a
9) A partnership is a taxpaying entity.
praktické sprievodcov k skúškam. Každý dokument je starostlivo pripravený, aktuálny a navrhnutý
Answer: FALSE
tak, Diff:
aby1vám šetril čas a zlepšoval výsledky.
LO: 1-1
Materiály
AACSB:sú vytvorené
Reflective s dôrazom na presnosť, zrozumiteľnosť a logickú štruktúru. Pomáhajú lepšie
Thinking
pochopiť náročné učivo a uľahčujú prípravu na testy či projekty.
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
10) Stockholders have no personal obligation for the corporation's debts.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
11) Accounting:
A) measures business activities.
B) processes data into reports and communicates the data to decision makers.
C) is often called the language of business.
D) is all of the above.
Answer: D
Diff: 2
LO: 1-1
YTREWS
, YTREWQ
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
12) A disadvantage of general partnerships is:
A) double taxation of distributed profits.
B) the partnership's assets are commingled with each partner's personal assets.
C) only individuals can be partners.
D) each partner may conduct business in the name of the entity and make agreements that legally bind
all partners.
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
13) Which of the following statements is TRUE for a limited liability company?
A) Members have unlimited liability for the debts of the business.
B) Members have limited liability for debts only up to the extent of their investment in the LLC.
C) The owners have unlimited liability for the debts of the business.
D) Members are not taxed like members of a partnership.
Answer: B
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
14) Which of the following statements is TRUE for a limited liability partnership?
A) All partners have limited liability for the debts of the partnership.
B) All the partners are considered to be limited partners.
C) The general partner has unlimited liability for the debts of the partnership.
D) The limited partners have unlimited liability for the debts of the partnership.
Answer: C
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
15) Which of the following statements is TRUE for a proprietorship?
A) Legally, a proprietorship is separate from the proprietor.
B) For accounting purposes, a proprietorship is separate from the proprietor.
C) The business records include the proprietor's personal finances.
D) All statements are correct.
Answer: B
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
YTREWS
, YTREWQ
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
16) Federal income taxes are paid by the in a limited liability company.
A) company
B) limited partners only
C) general partners only
D) members
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
17) Which of the following statements is TRUE for a limited liability partnership?
A) The partnership pays no federal income taxes.
B) Only the limited partners pay federal income taxes on their shares of the partnership's profits.
C) Only the general partner pays federal income taxes on his or her share of the partnership's profits.
D) Only the members pay federal income taxes on their shares of the partnership's profits.
Answer: A
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
18) Which statement is TRUE about partnerships?
A) A partnership is a taxpaying entity.
B) General partnerships have mutual agency and limited liability.
C) Individuals, corporations, partnerships, or other types of entities can be partners.
D) A written partnership contract must exist.
Answer: C
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
19) Which of the following have unlimited liability for a company's debts?
A) owners of a corporation
B) members of a limited liability company
C) limited partners in a limited liability partnership
D) general partner in a limited liability partnership
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
YTREWS
