als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
https://browsegrades.net/singlePaper/416750/test-banksolution-manual-instructor-manuals-for-ac
Accounting, Cdn. 8e, Vol. 1 (Horngren)
Chapter 1 Accounting and the Business Environment
1) Financial statements provide information about business activities to decision makers.
Answer: TRUE
Diff: 1 Page Ref: 2
2) Investors provide money to a business to begin operations.
Answer: TRUE
Diff: 2 Page Ref: 3
3) Not-for-profit organizations need accounting information, as do profit-oriented organizations.
Answer: TRUE
Diff: 1 Page Ref: 3
4) The designation CA stands for Certified Public Accountant.
Answer: FALSE
Diff: 1 Page Ref: 6
5) A proprietorship can have two owners, so long as they are husband and wife.
Answer: FALSE
Diff: 1 Page Ref: 7
6) An organization, for accounting purposes, stands apart from other organizations and individuals as a
separate accounting entity.
Answer: TRUE
Diff: 1 Page Ref: 11
7) The reliability characteristic means that accounting information is free from error and bias, i.e.,
objective.
Answer: TRUE
Diff: 2 Page Ref: 11
8) The going-concern assumption states an entity will remain in operation for only the next accounting
period.
Answer: FALSE
Diff: 1 Page Ref: 12
9) The accounting equation can be stated as assets + liabilities = owner's equity.
Answer: FALSE
Diff: 1 Page Ref: 13
10) Assets are economic resources of a business expected to be of benefit in the future.
Answer: TRUE
Diff: 2 Page Ref: 13
11) Owner's equity is often referred to as net assets and represents the residual amount of business assets,
which can be claimed by the owner.
Answer: TRUE
Diff: 2 Page Ref: 14
1
Copyright © 2011 Pearson Education, Inc.
als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
,als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
https://browsegrades.net/singlePaper/416750/test-banksolution-manual-instructor-manuals-for-ac
12) An owner investment would increase the assets and decrease the liabilities of the firm.
Answer: FALSE
Diff: 1 Page Ref: 15
13) The purchase of supplies on account would have an effect on the owner's equity of the firm.
Answer: FALSE
Diff: 2 Page Ref: 15
14) One way of increasing the equity of a business is to increase a liability.
Answer: FALSE
Diff: 3 Page Ref: 14
15) The recording of an owner withdrawal has the same effect on owner's equity as the recording of an
owner investment.
Answer: FALSE
Diff: 2 Page Ref: 14
16) When a revenue is recorded, the asset account Cash is always increased along with owner's equity.
Answer: FALSE
Diff: 2 Page Ref: 16
17) The balance sheet lists all the entity's assets, liabilities, and owner's equity as of a specific date.
Answer: TRUE
Diff: 1 Page Ref: 20
18) Increases in owner's equity result from revenues and owner investments while decreases result from
expenses and owner withdrawals.
Answer: TRUE
Diff: 2 Page Ref: 14
19) An income statement is dated for a period of time such as "For the Year Ended December 31, 2010."
Answer: TRUE
Diff: 1 Page Ref: 20
20) The income statement must be prepared before the statement of owner's equity since net income or
net loss is added to or subtracted from the beginning balance in the owner's capital account.
Answer: TRUE
Diff: 2 Page Ref: 21
21) The income statement presents a summary of an entity's revenues and liabilities over a period of time.
Answer: FALSE
Diff: 1 Page Ref: 20
22) The income statement shows how much the cash account either increased or decreased during the
period.
Answer: FALSE
Diff: 2 Page Ref: 21
2
Copyright © 2011 Pearson Education, Inc.
als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
,als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
https://browsegrades.net/singlePaper/416750/test-banksolution-manual-instructor-manuals-for-ac
23) Which of the following users of accounting information seek to assess the organization's ability to
make scheduled payments?
A) creditors
B) taxing authorities
C) government regulatory agencies
D) employees
Answer: A
Diff: 2 Page Ref: 3
24) The Accounting Standards Board is responsible for establishing:
A) the Canadian Institute of Chartered Accountants
B) generally accepted accounting principles
C) the code of professional conduct for accountants
D) the Securities and Exchange Commission
Answer: B
Diff: 2 Page Ref: 9
25) All of the following are forms of business organizations except:
A) proprietorship
B) partnership
C) corporation
D) governmental unit
Answer: D
Diff: 1 Page Ref: 7
26) Which of the following forms of business organizations protect the personal assets of the owners from
creditors of the business?
A) proprietorship
B) partnership
C) corporation
D) corporation and partnership
Answer: C
Diff: 2 Page Ref: 8
27) Which of the following is not addressed by rules of professional conduct?
A) competence
B) confidentiality
C) number of clients
D) compliance with professional standards
Answer: C
Diff: 2 Page Ref: 6
28) The Sarbanes-Oxley Act became law in response to
A) high profits of publicly traded companies
B) exorbitant fees charged by public accounting firms
C) unethical behaviour that caused huge accounting scandals
D) investor demands for increased control over private companies
Answer: C
Diff: 3 Page Ref: 6
3
Copyright © 2011 Pearson Education, Inc.
als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
,als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
https://browsegrades.net/singlePaper/416750/test-banksolution-manual-instructor-manuals-for-ac
29) According to GAAP, the primary objective of financial reporting is to provide information:
A) to the federal government
B) about the profitability of the business
C) regarding the cash flows of the business
D) useful for making investment decisions and for assessing management's stewardship
Answer: D
Diff: 3 Page Ref: 9
30) GAAP stands for:
A) generally accepted auditing practices
B) generally accrued auditing procedures
C) generally accepted accounting principles
D) generally accrued accounting principles
Answer: C
Diff: 1 Page Ref: 9
31) According to GAAP, to be useful, accounting information must be all of the following except:
A) relevant
B) comparable
C) subjective
D) reliable
Answer: C
Diff: 2 Page Ref: 10
32) Which of the following statements is false?
A) Reliable data are verifiable.
B) Reliable data may be supported by objective evidence.
C) Owner opinions are one source of objective evidence.
D) An independent appraisal is usually considered reliable.
Answer: C
Diff: 2 Page Ref: 11
33) The principle that states that assets acquired by the business should be recorded at their exchange
price is the:
A) objectivity principle
B) cost principle of measurement
C) revenue-recognition principle
D) matching principle
Answer: B
Diff: 2 Page Ref: 12
34) The qualitative characteristic that states that accounting records and statements are based on the most
reliable data available so they are are as accurate and useful as possible.
A) Reliability
B) Relevance
C) Comparability
D) Understandability
Answer: A
Diff: 1 Page Ref: 11
4
Copyright © 2011 Pearson Education, Inc.
als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
https://browsegrades.net/singlePaper/416750/test-banksolution-manual-instructor-manuals-for-ac
Accounting, Cdn. 8e, Vol. 1 (Horngren)
Chapter 1 Accounting and the Business Environment
1) Financial statements provide information about business activities to decision makers.
Answer: TRUE
Diff: 1 Page Ref: 2
2) Investors provide money to a business to begin operations.
Answer: TRUE
Diff: 2 Page Ref: 3
3) Not-for-profit organizations need accounting information, as do profit-oriented organizations.
Answer: TRUE
Diff: 1 Page Ref: 3
4) The designation CA stands for Certified Public Accountant.
Answer: FALSE
Diff: 1 Page Ref: 6
5) A proprietorship can have two owners, so long as they are husband and wife.
Answer: FALSE
Diff: 1 Page Ref: 7
6) An organization, for accounting purposes, stands apart from other organizations and individuals as a
separate accounting entity.
Answer: TRUE
Diff: 1 Page Ref: 11
7) The reliability characteristic means that accounting information is free from error and bias, i.e.,
objective.
Answer: TRUE
Diff: 2 Page Ref: 11
8) The going-concern assumption states an entity will remain in operation for only the next accounting
period.
Answer: FALSE
Diff: 1 Page Ref: 12
9) The accounting equation can be stated as assets + liabilities = owner's equity.
Answer: FALSE
Diff: 1 Page Ref: 13
10) Assets are economic resources of a business expected to be of benefit in the future.
Answer: TRUE
Diff: 2 Page Ref: 13
11) Owner's equity is often referred to as net assets and represents the residual amount of business assets,
which can be claimed by the owner.
Answer: TRUE
Diff: 2 Page Ref: 14
1
Copyright © 2011 Pearson Education, Inc.
als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
,als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
https://browsegrades.net/singlePaper/416750/test-banksolution-manual-instructor-manuals-for-ac
12) An owner investment would increase the assets and decrease the liabilities of the firm.
Answer: FALSE
Diff: 1 Page Ref: 15
13) The purchase of supplies on account would have an effect on the owner's equity of the firm.
Answer: FALSE
Diff: 2 Page Ref: 15
14) One way of increasing the equity of a business is to increase a liability.
Answer: FALSE
Diff: 3 Page Ref: 14
15) The recording of an owner withdrawal has the same effect on owner's equity as the recording of an
owner investment.
Answer: FALSE
Diff: 2 Page Ref: 14
16) When a revenue is recorded, the asset account Cash is always increased along with owner's equity.
Answer: FALSE
Diff: 2 Page Ref: 16
17) The balance sheet lists all the entity's assets, liabilities, and owner's equity as of a specific date.
Answer: TRUE
Diff: 1 Page Ref: 20
18) Increases in owner's equity result from revenues and owner investments while decreases result from
expenses and owner withdrawals.
Answer: TRUE
Diff: 2 Page Ref: 14
19) An income statement is dated for a period of time such as "For the Year Ended December 31, 2010."
Answer: TRUE
Diff: 1 Page Ref: 20
20) The income statement must be prepared before the statement of owner's equity since net income or
net loss is added to or subtracted from the beginning balance in the owner's capital account.
Answer: TRUE
Diff: 2 Page Ref: 21
21) The income statement presents a summary of an entity's revenues and liabilities over a period of time.
Answer: FALSE
Diff: 1 Page Ref: 20
22) The income statement shows how much the cash account either increased or decreased during the
period.
Answer: FALSE
Diff: 2 Page Ref: 21
2
Copyright © 2011 Pearson Education, Inc.
als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
,als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
https://browsegrades.net/singlePaper/416750/test-banksolution-manual-instructor-manuals-for-ac
23) Which of the following users of accounting information seek to assess the organization's ability to
make scheduled payments?
A) creditors
B) taxing authorities
C) government regulatory agencies
D) employees
Answer: A
Diff: 2 Page Ref: 3
24) The Accounting Standards Board is responsible for establishing:
A) the Canadian Institute of Chartered Accountants
B) generally accepted accounting principles
C) the code of professional conduct for accountants
D) the Securities and Exchange Commission
Answer: B
Diff: 2 Page Ref: 9
25) All of the following are forms of business organizations except:
A) proprietorship
B) partnership
C) corporation
D) governmental unit
Answer: D
Diff: 1 Page Ref: 7
26) Which of the following forms of business organizations protect the personal assets of the owners from
creditors of the business?
A) proprietorship
B) partnership
C) corporation
D) corporation and partnership
Answer: C
Diff: 2 Page Ref: 8
27) Which of the following is not addressed by rules of professional conduct?
A) competence
B) confidentiality
C) number of clients
D) compliance with professional standards
Answer: C
Diff: 2 Page Ref: 6
28) The Sarbanes-Oxley Act became law in response to
A) high profits of publicly traded companies
B) exorbitant fees charged by public accounting firms
C) unethical behaviour that caused huge accounting scandals
D) investor demands for increased control over private companies
Answer: C
Diff: 3 Page Ref: 6
3
Copyright © 2011 Pearson Education, Inc.
als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
,als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
https://browsegrades.net/singlePaper/416750/test-banksolution-manual-instructor-manuals-for-ac
29) According to GAAP, the primary objective of financial reporting is to provide information:
A) to the federal government
B) about the profitability of the business
C) regarding the cash flows of the business
D) useful for making investment decisions and for assessing management's stewardship
Answer: D
Diff: 3 Page Ref: 9
30) GAAP stands for:
A) generally accepted auditing practices
B) generally accrued auditing procedures
C) generally accepted accounting principles
D) generally accrued accounting principles
Answer: C
Diff: 1 Page Ref: 9
31) According to GAAP, to be useful, accounting information must be all of the following except:
A) relevant
B) comparable
C) subjective
D) reliable
Answer: C
Diff: 2 Page Ref: 10
32) Which of the following statements is false?
A) Reliable data are verifiable.
B) Reliable data may be supported by objective evidence.
C) Owner opinions are one source of objective evidence.
D) An independent appraisal is usually considered reliable.
Answer: C
Diff: 2 Page Ref: 11
33) The principle that states that assets acquired by the business should be recorded at their exchange
price is the:
A) objectivity principle
B) cost principle of measurement
C) revenue-recognition principle
D) matching principle
Answer: B
Diff: 2 Page Ref: 12
34) The qualitative characteristic that states that accounting records and statements are based on the most
reliable data available so they are are as accurate and useful as possible.
A) Reliability
B) Relevance
C) Comparability
D) Understandability
Answer: A
Diff: 1 Page Ref: 11
4
Copyright © 2011 Pearson Education, Inc.
als
withfor
myaccountinglab
accounting
Test bankvolume
solution
8e charles
1 canadian
manual
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@@@@@@@@@@@@@@@@@@@
instructor
eighth edition
manualswithfor myaccountinglab
accounting volume
8e charles
1 canadian
t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~@@@@@@
eighth edition with myaccountinglab 8e charles t horngren.pdf!!!!!!!!!!!!!!!!!!!~~~~~~~~
