Test Bank — Financial Accounting, 12th Edition (Weygandt, Kimmel & Mitchell, 2022) | All Chapters 1–13 Covered

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_A
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, TABLE OF CONTENTS
Test Bank: Financial Accounting, 12th Edition
Authors: Weygandt, Kimmel & Mitchell
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Chapter 1: Accounting in Action
Chapter 2: The Recording Process
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Chapter 3: Adjusting the Accounts

Chapter 4: Completing the Accounting Cycle
Chapter 5: Accounting for Merchandising Operations
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Chapter 6: Inventories
Chapter 7: Fraud, Internal Control, and Cash
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Chapter 8: Accounting for Receivables
Chapter 9: Plant Assets, Natural Resources, and Intangible Assets
Chapter 10: Liabilities
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Chapter 11: Corporations: Organization, Stock Transactions, and Stockholders’ Equity
Chapter 12: Statement of Cash Flows
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Chapter 13: Financial Analysis: The Big Picture
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, Financial Accounting, 12e (Weygandt)
Chapter 1 Accounting in Action

1) Owners of business firms are the only people who need accounting information.
Answer: FALSE
Diff: 1
LO: 1, Section 1
ST
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
UV

2) Transactions that can be measured in dollars and cents are recorded in the financial
information system.
Answer: TRUE
Diff: 1
IA
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
_A
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5

3) The hiring of a new company president is an economic event recorded by the financial
information system.
PP
Answer: FALSE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: C
RO
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5

4) Management of a business enterprise is the major external user of information.
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Answer: FALSE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
D
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
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, 5) Accounting communicates financial information about a business enterprise to both internal
and external users.
Answer: TRUE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
ST
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5

6) Accounting information is used only by external users with financial interests in a business
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enterprise.
Answer: FALSE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: C
IA
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
_A
7) Financial statements are the primary means of communicating accounting information to
interested parties.
Answer: TRUE
Diff: 1
PP
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
RO
Min: 0.5

8) Bookkeeping and accounting are one and the same because the bookkeeping function includes
the accounting process.
Answer: FALSE
VE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: C
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
D
Min: 0.5
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9) The origins of accounting are attributed to Luca Pacioli, a famous mathematician.
Answer: TRUE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
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