Test Bank – Financial Accounting, 13th Edition – C. William Thomas & Wendy M. Tietz – ISBN 9780136899037 (Full Chapters 1–12 Covered)

Edrftgyihu jiuh




Financial Accounting
ST

13th Edition
UV

TEST BANK
IA
_A

C. William Thomas, Wendy M. Tietz
PP

Comprehensive Test Bank for Instructors
and Students
RO

||| ||| || ||| || | || ||| | || ||| |

9780136899037
VE

© C. William Thomas & Wendy M. Tietz. All rights
reserved. Reproduction or distribution without
D?

permission is prohibited.




© MEDGEEK

, TABLE OF CONTENTS

Test Bank – Financial Accounting (13th Edition)
Authors: C. William Thomas and Wendy M. Tietz
ISBN: 9780136899037
ST
PART I: THE ACCOUNTING CYCLE

Chapter 1: The Financial Statements
Chapter 2: Transaction Analysis
UV
Chapter 3: Accrual Accounting and Income

PART II: ASSETS AND INTERNAL CONTROLS

Chapter 4: Internal Control and Cash
Chapter 5: Receivables and Revenue
IA
Chapter 6: Inventory and Cost of Goods Sold
Chapter 7: Plant Assets, Natural Resources, and Intangibles

PART III: LIABILITIES AND STOCKHOLDERS' EQUITY
_A
Chapter 8: Current and Contingent Liabilities
Chapter 9: Long-Term Liabilities
Chapter 10: Stockholders' Equity
PP
PART IV: ANALYSIS AND REPORTING

Chapter 11: The Statement of Cash Flows
Chapter 12: Financial Statement Analysis
RO
VE
D?

, Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz

Financial Accounting, 13e (Thomas/Tietz)
Chapter 1 The Financial Statements
ST
Learning Objective 1-1

1) Accounting is an information system that measures business activities.
Answer: TRUE
UV
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement

2) Bookkeeping is a mechanical part of accounting.
IA
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
_A
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement

3) Accounting is often called the language of business.
Answer: TRUE
PP
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
RO
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
VE
AICPA Functional: Measurement, Reporting

5) The accounting process begins and ends with people making decisions.
Answer: TRUE
Diff: 1
LO: 1-1
D?
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement




1
Copyright © 2022 Pearson Education, Inc.

, 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
ST
AICPA Bus Persp: Industry Sector, Legal/Regulatory
AICPA Functional: Measurement, Reporting

7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
accounting information.
UV
Answer: FALSE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Industry Sector, Legal/Regulatory
AICPA Functional: Measurement, Reporting
IA
8) The business records of a sole proprietorship should include the proprietor's personal finances.
Answer: FALSE
Diff: 1
_A
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement

9) A partnership is a taxpaying entity.
PP
Answer: FALSE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
RO
AICPA Functional: Measurement

10) Stockholders have no personal obligation for the corporation's debts.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
VE
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
D?
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
2
Copyright © 2022 Pearson Education, Inc.