TEST BANK
Financial Accounting: Information for Decisions, 11th Edition
by John Wild
AM
AZ
IN
G
TI
PS
,Student name:
FILL IN THE BLANK. Write the word or phrase that best completes each statement or
answers the question.
is an information and measurement system that identifies, records and
communicates an organization’s business activities.
A is a business that is owned by only one person who has unlimited liability.
users of accounting information do not directly run an organization and have limited
AM
access to its accounting information.
is the area of accounting that focuses on the needs of external users by providing
them with general-purpose financial statements.
AZ
are procedures to protect assets, ensure reliable accounting, promote efficiency, and
uphold company policies.
IN
are beliefs that separate right from wrong and are considered accepted standards of
good and bad behavior.
G
The assumption that requires that a business be accounted for separately from other business
entities and its owner(s) is the assumption.
TI
The assumption assumes that a business will continue operating instead of being
closed or sold.
PS
The assumption states that transactions and events are expressed in monetary, or
money, units.
The principle that requires that accounting information be based on actual cost is the
.
A disadvantage of a sole proprietorship is the fact that the owner has for business
debts and actions.
Version 1
,There are three sections of the statement of cash flows activities involve the long-
term borrowing and repaying of cash from lenders.
There are three sections of the statement of cash flows activities involve buying and
selling assets such as land and equipment that are held for long-term use.
There are three sections of the statement of cash flows activities include payments
for salaries, insurance, and rent.
AM
Financial accounting is governed by concepts and rules known as .
are the increases in equity from a company’s sales of products and services to
AZ
customers.
A common characteristic of is the expectation that they will yield future benefits.
IN
Creditors’ claims on assets that reflect company obligations to provide assets, products, or
services to others are called .
G
The owner’s claim on assets, also known as net assets, is called .
TI
The accounting equation is .
The term refers to a liability that promises a future outflow of resources.
PS
Using the accounting equation, equity is equal to .
, is the recording of transactions and events.
is net income divided by average total assets.
Return on assets is divided by average total assets.
Version 1
, users of accounting information directly manage the organization.
The describes a company’s revenues and expenses along with the resulting net
income or net loss over a period of time due to earnings activities.
SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
Explain the role of accounting in the information age.
AM
AZ
What is the balance sheet? What is its purpose?
IN
Identify the users and uses of accounting information.
G
TI
Identify several opportunities in accounting and distinguish between private accounting and
PS
public accounting.
Explain why ethics are an integral part of accounting.
Version 1
Financial Accounting: Information for Decisions, 11th Edition
by John Wild
AM
AZ
IN
G
TI
PS
,Student name:
FILL IN THE BLANK. Write the word or phrase that best completes each statement or
answers the question.
is an information and measurement system that identifies, records and
communicates an organization’s business activities.
A is a business that is owned by only one person who has unlimited liability.
users of accounting information do not directly run an organization and have limited
AM
access to its accounting information.
is the area of accounting that focuses on the needs of external users by providing
them with general-purpose financial statements.
AZ
are procedures to protect assets, ensure reliable accounting, promote efficiency, and
uphold company policies.
IN
are beliefs that separate right from wrong and are considered accepted standards of
good and bad behavior.
G
The assumption that requires that a business be accounted for separately from other business
entities and its owner(s) is the assumption.
TI
The assumption assumes that a business will continue operating instead of being
closed or sold.
PS
The assumption states that transactions and events are expressed in monetary, or
money, units.
The principle that requires that accounting information be based on actual cost is the
.
A disadvantage of a sole proprietorship is the fact that the owner has for business
debts and actions.
Version 1
,There are three sections of the statement of cash flows activities involve the long-
term borrowing and repaying of cash from lenders.
There are three sections of the statement of cash flows activities involve buying and
selling assets such as land and equipment that are held for long-term use.
There are three sections of the statement of cash flows activities include payments
for salaries, insurance, and rent.
AM
Financial accounting is governed by concepts and rules known as .
are the increases in equity from a company’s sales of products and services to
AZ
customers.
A common characteristic of is the expectation that they will yield future benefits.
IN
Creditors’ claims on assets that reflect company obligations to provide assets, products, or
services to others are called .
G
The owner’s claim on assets, also known as net assets, is called .
TI
The accounting equation is .
The term refers to a liability that promises a future outflow of resources.
PS
Using the accounting equation, equity is equal to .
, is the recording of transactions and events.
is net income divided by average total assets.
Return on assets is divided by average total assets.
Version 1
, users of accounting information directly manage the organization.
The describes a company’s revenues and expenses along with the resulting net
income or net loss over a period of time due to earnings activities.
SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
Explain the role of accounting in the information age.
AM
AZ
What is the balance sheet? What is its purpose?
IN
Identify the users and uses of accounting information.
G
TI
Identify several opportunities in accounting and distinguish between private accounting and
PS
public accounting.
Explain why ethics are an integral part of accounting.
Version 1
