Test Bank – Principles of Accounting, 15th Edition by Tracie L. Miller

TEST BANK




** All Chapters included

,Table of Contents are given below


THE FINANCIAL CHAPTERS


1.Accounting and the Business Environment
2.Recording Business Transactions
3.The Adjusting Process
4.Completing the Accounting Cycle
5.Merchandising Operations
6.Merchandising Inventory
7.Accounting Information Systems
8.Internal Control and Cash
9.Receivables
10.Plant Assets, Natural Resources, and Intangibles
11.Current Liabilities and Payroll
12.Partnerships
13.Stockholders’ Equity
14.Long-Term Liabilities
15.Investments
16.The Statement of Cash Flows
17.Financial Statement Analysis


THE MANAGERIAL CHAPTERS


1. Introduction to Managerial Accounting
2. Job Order Costing
3. Process Costing
4. Cost-Volume-Profit Analysis
5. The Budgeting Process
6. Flexible Budgets and Standard Cost Systems
7. Cost Allocation and Responsibility Accounting
8. Short-term Business Decisions
9. Capital Investment Decisions

,Principles of Accounting: The Financial Chapters, 15e

Chapter F:1 Accounting and the Business Environment

Learning Objective F:1-1

1) Accounting is the information system that measures business activities, processes the information into
reports, and communicates the results to decision makers.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2 : Why is Accounting Important? (H1)

2) The knowledge of accounting is rarely used to help make business and personal financial decisions.
Answer: FALSE
Explanation: The knowledge of accounting is used daily to assist in making decisions for both
businesses and personal items.
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2 : Why is Accounting Important? (H1)

3) Accounting starts with economic activities that accountants review and evaluate using critical thinking
and judgment to create useful information that helps individuals make good decisions.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2 : Why is Accounting Important? (H1)

4) Accounting is referred to as the language of business because it is the method of communicating
business information to decision makers.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2 : Why is Accounting Important? (H1)




1

, 5) A model called the ________ was created to help students and the public understand what accounting
is.
A) Decision Making Model
B) Business Model
C) Pathways Vision Model
D) Cost Model
Answer: C
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2 : Why is Accounting Important? (H1)

6) The Pathways Vision Model emphasizes that good decisions have an impact on:
A) accounting judgments and economic activity.
B) accounting judgments only.
C) economic activity only.
D) neither accounting judgments nor economic activity.
Answer: A
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2 : Why is Accounting Important? (H1)

7) Managerial accounting focuses on providing information for external decision makers.
Answer: FALSE
Explanation: Managerial accounting focuses on providing information for internal decision makers.
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2 : Decision Makers: The Users of Accounting Information

8) Investors primarily use managerial accounting information for decision-making purposes.
Answer: FALSE
Explanation: External users (investors) use financial accounting information.
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Concept
H2 : Decision Makers: The Users of Accounting Information




2