Financial & Managerial Accounting: The Basics for Business Decisions (20th Edition) by Jan Williams – Test Bank – Chapters 1–26 Practice Questions with Answers

Test Bank Financial & Managerial Accounting the Basics for
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Business Decision, 20th Edition by Jan Williams
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All Chapters 1-26 Covered
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1

,TABLE OF CONTENT gh gh




Chapter 1: Accounting: Information for Decision Making
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Chapter 2: Basic Financial Statements
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Chapter 3: The Accounting Cycle: Capturing Economic Events
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Chapter 4: The Accounting Cycle: Accruals and Deferrals
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Chapter 5: The Accounting Cycle: Reporting Financial Results
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COMPREHENSIVE PROBLEM 1: French Broad Equipment Rentals gh gh gh gh gh gh




Chapter 6: Merchandising Activities
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Chapter 7: Financial Assets
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Chapter 8: Inventories and the Cost of Goods Sold
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COMPREHENSIVE PROBLEM 2: Music-Is-Us, Inc. gh gh gh ghghgh




Chapter 9: Plant and Intangible Assets
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Chapter 10: Liabilities
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Chapter 11: Stockholder’s Equity: Paid-in Capital
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gh COMPREHENSIVE PROBLEM 3: Mountain Sports, Inc. gh gh gh gh ghgh




Chapter 12: Revenue Recognition and Reporting Results of Operations
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Chapter 13: Statement of Cash Flows
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Chapter 14: Financial Statement Analysis
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COMPREHENSIVE PROBLEMS 4: Home Depot, Inc. gh gh gh gh ghghgh




Chapter 15: Global Business and Accounting
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Chapter 16: Management Accounting: A Business Partner
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Chapter 17: Job Order Cost Systems and Overhead Allocations
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Chapter 18: Process Costing
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Chapter 19: Costing and the Value Chain
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Chapter 20: Cost-Volume-Profit Analysis
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Chapter 21: Incremental Analysis
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2

,COMPREHENSIVE PROBLEM 5: Jasper Company
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Chapter 22: Responsibility Accounting and Transfer Pricing
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Chapter 23: Operational Budgeting
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Chapter 24: Standard Cost Systems
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Chapter 25: Rewarding Business Performance
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COMPREHENSIVE PROBLEM 6: Utease Corporation
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Chapter 26: Capital Budgeting
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APPENDIX A: Home Depot 2018 Financial Statements
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APPENDIX B: The Time Value of Money
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APPENDIX C: Forms of Business Organization
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3

, Answers Included gh



Appendix B gh




1) Future value is the amount that must be invested today at a specific interest rate to receive a
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particular amount at some future date.
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2) The present value of an ordinary annuity is the amount that must be invested today at a
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specific interest rate to in order to receive a particular amount at the end of a specified
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number of future periods.
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3) The future value of an investment gradually increases toward its present value amount.
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4) Compound interest assumes that the interest earned on a particular investment is reinvested.
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5) Discounting a future value amount will determine its present value amount.
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6) The lower the discount rate of an investment, the lower the present value of the investment.
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7) Annuities provide a series of cash flows to investors at regular intervals for a specified period
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of time.
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4