Franklyn A Plus Pass
TEST BANK for Survey of Accounting 10th Edition
by Carl Warren, Amanda Farmer, Jefferson Jones
All Chapters Covered 1-14| 100% Verified Questions &
Accurate Solutions| Exam Preparations Q&As| A+ GRADED
Page | 1
, Franklyn A Plus Pass
TABLE OF CONTENTS
Chapter 1: The Role of Accounting in Business
Chapter 2: Basic Accounting Systems: Cash Basis
Chapter 3: Basic Accounting Systems: Accrual Basis
Chapter 4: Accounting for Retail Businesses
Chapter 5: Internal Control and Cash
Chapter 6: Receivables and Inventories
Chapter 7: Long-term Operating Assets
Chapter 8: Liabilities and Stockholders' Equity
Chapter 9: Manufacturing Operations
Chapter 10: Cost-Volume-Profit Analysis
Chapter 11: Planning Operations
Chapter 12: Operating Decisions
Chapter 13: Evaluating Operational Segments
Chapter 14: Analyzing Long-term (Capital) Investments
Chapter 1: The Role of Accounting in Business
Indicate whether the statement is true or false.
1. The popularity of the sole proprietorship is due to the ease and low cost of organizing.
a. True
b. False
ANSWER: True
Page | 2
, Franklyn A Plus Pass
2. A corporation is a business that is legally separate and distinct from its owners.
a. True
b. False
ANSWER: True
3. Merchandising businesses produce products rather than provide services to customers.
a. True
b. False
ANSWER: False
4. A partnership is owned by two or more individuals.
a. True
b. False
ANSWER: True
5. A limited liability company combines attributes of a partnership and a corporation.
a. True
b. False
ANSWER: True
6. The ownership of a proprietorship is divided into shares of stock owned by its stockholders.
a. True
b. False
ANSWER: False
7. Accounting is often called the "language of business" because business information is communicated to
stakeholders.
a. True
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, Franklyn A Plus Pass
b. False
ANSWER: True
8. John Deere is a leading manufacturer of agricultural machinery in the world, producing products that
serve unique market needs. Therefore, John Deere is an example of a company that uses a premium-price
approach to attract customers.
a. True
b. False
ANSWER: True
9. Creditors have preference to assets behind stockholders if a business fails.
a. True
b. False
ANSWER: False
10. A liability is a legal obligation to repay the amount borrowed according to the terms of the borrowing
agreement.
a. True
b. False
ANSWER: True
11. The balance sheet represents the accounting equation.
a. True
b. False
ANSWER: True
12. A primary disadvantage of corporations is that the financial resources available to them are limited.
a. True
b. False
Page | 4
TEST BANK for Survey of Accounting 10th Edition
by Carl Warren, Amanda Farmer, Jefferson Jones
All Chapters Covered 1-14| 100% Verified Questions &
Accurate Solutions| Exam Preparations Q&As| A+ GRADED
Page | 1
, Franklyn A Plus Pass
TABLE OF CONTENTS
Chapter 1: The Role of Accounting in Business
Chapter 2: Basic Accounting Systems: Cash Basis
Chapter 3: Basic Accounting Systems: Accrual Basis
Chapter 4: Accounting for Retail Businesses
Chapter 5: Internal Control and Cash
Chapter 6: Receivables and Inventories
Chapter 7: Long-term Operating Assets
Chapter 8: Liabilities and Stockholders' Equity
Chapter 9: Manufacturing Operations
Chapter 10: Cost-Volume-Profit Analysis
Chapter 11: Planning Operations
Chapter 12: Operating Decisions
Chapter 13: Evaluating Operational Segments
Chapter 14: Analyzing Long-term (Capital) Investments
Chapter 1: The Role of Accounting in Business
Indicate whether the statement is true or false.
1. The popularity of the sole proprietorship is due to the ease and low cost of organizing.
a. True
b. False
ANSWER: True
Page | 2
, Franklyn A Plus Pass
2. A corporation is a business that is legally separate and distinct from its owners.
a. True
b. False
ANSWER: True
3. Merchandising businesses produce products rather than provide services to customers.
a. True
b. False
ANSWER: False
4. A partnership is owned by two or more individuals.
a. True
b. False
ANSWER: True
5. A limited liability company combines attributes of a partnership and a corporation.
a. True
b. False
ANSWER: True
6. The ownership of a proprietorship is divided into shares of stock owned by its stockholders.
a. True
b. False
ANSWER: False
7. Accounting is often called the "language of business" because business information is communicated to
stakeholders.
a. True
Page | 3
, Franklyn A Plus Pass
b. False
ANSWER: True
8. John Deere is a leading manufacturer of agricultural machinery in the world, producing products that
serve unique market needs. Therefore, John Deere is an example of a company that uses a premium-price
approach to attract customers.
a. True
b. False
ANSWER: True
9. Creditors have preference to assets behind stockholders if a business fails.
a. True
b. False
ANSWER: False
10. A liability is a legal obligation to repay the amount borrowed according to the terms of the borrowing
agreement.
a. True
b. False
ANSWER: True
11. The balance sheet represents the accounting equation.
a. True
b. False
ANSWER: True
12. A primary disadvantage of corporations is that the financial resources available to them are limited.
a. True
b. False
Page | 4
