Fundamental Accounting Principles, 24th Edition | Complete Test Bank with Answers; Comprehensive Exam Q&A by John Wild and Ken Shaw

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, TEST BANK for Fundamental Accounting
Principles, 24th Edition by John Wild, Ken Shaw
All Chapters Fully Covered 1-26| Verified Questions
& 100% Accurate Solutions for Exam Preparations|
A+ GRADED MATERIAL



Chapter 1 Accounting in Business

1) Accounting is an information and measurement system that identifies, records, and
communicates an organization's business activities.

Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually
or electronically. This is just one part of accounting.

Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
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3) An accounting system captures relevant data about transactions and then classifies, records,
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and reports data.
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Answer: TRUE
Difficulty: 1 Easy
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Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
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Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
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AICPA: BB Critical Thinking; FN Decision Making
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4) Financial accounting is the area of accounting aimed at serving external users by providing
them with general-purpose financial statements.
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Answer: TRUE
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,Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
5) Internal users of accounting information do not directly run the organization and have limited
access to its accounting information.

Answer: FALSE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

6) Auditors verify the effectiveness of internal controls.

Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

7) External auditors examine financial statements to verify that they are prepared according to
generally accepted accounting principles.

Answer: TRUE
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Difficulty: 1 Easy
Topic: Users of Accounting Information
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Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
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AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
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8) External users include lenders, shareholders, customers, and regulators.
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Answer: TRUE
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Difficulty: 2 Medium
Topic: Users of Accounting Information
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Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Understand
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AACSB/Accessibility: Communication / Keyboard Navigation
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, AICPA: BB Critical Thinking; FN Decision Making
9) Regulators often have legal authority over certain activities of organizations.

Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Legal; FN Decision Making

10) Internal users include lenders, shareholders, brokers and nonexecutive employees.

Answer: FALSE
Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making

11) Opportunities in accounting include auditing, consulting, market research, and tax planning.

Answer: TRUE
Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
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12) Ethics is defined as maximizing personal wealth, regardless the cost.
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Answer: FALSE
Difficulty: 2 Medium
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Topic: Ethics
Learning Objective: 01-C3 Explain why ethics are crucial to accounting.
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Bloom's: Understand
AACSB/Accessibility: Ethics / Keyboard Navigation
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AICPA: BB Industry; FN Decision Making
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