Test Bank for College Accounting: A Practical Approach, 15th Edition by Jeffrey Slater – Accounting Study Guide

Test Bank
Test
for Bank
College
Test Bank forfor College
Accounting-
College Accounting-
A Practical
A Practical
Approach,
Accounting: Approach,
15th edition
15thbyedition
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edition by Jeffrey Slater



College Accounting, 15e (Slater) All Chapters ✅
Chapter 1 Accounting Concepts and Procedures

Learning Objective 1-1

1) The type of business organization where the owners are NOT personally liable for the business’s debts
is a:
A) corporation
B) partnership
C) sole proprietorship
D) All of the above
Answer: A
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

2) The purpose of the accounting process is to provide financial information about:
A) sole proprietorships
B) small businesses
C) large corporations
D) All of these answers are correct
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

3) Accounting provides information to:
A) investors
B) government
C) managers
D) All of these answers are correct
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles




1


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College Accounting-
A Practical
A Practical
Approach,Approach,
15th edition
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4) Which of the following is a characteristic of a sole proprietorship?
A) Business owned by more than one person.
B) Easy to form.
C) Each stockholder acts as an owner of the company.
D) Can continue indefinitely.
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

5) A partnership is a business which:
A) is easy to form
B) ends with the death of a partner
C) is owned by more than one person
D) All of these answers are correct
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

6) Which is an advantage of a sole proprietorship form of business?
A) There is limited personal risk.
B) The business can continue indefinitely.
C) The owner makes all the decisions.
D) The business is owned by stockholders.
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

7) Which of the following is NOT a type of business organization?
A) Corporation
B) Partnership
C) Sole proprietorship
D) Limited Asset Corporation
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles




2


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College
for Accounting-
College Accounting-
A Practical
A Practical
Approach,Approach,
15th edition
15thbyedition
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8) A corporation:
A) is legally separate from its owners
B) is owned by stockholders
C) has limited risk to stockholders
D) All of the above
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

9) The basic accounting equation is:
A) Assets + Liabilities = Owner’s Equity
B) Assets = Liabilities - Owner's Equity
C) Assets = Owner’s Equity - Liabilities
D) Assets = Liabilities + Owner's Equity
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

10) A law firm would be considered a:
A) merchandise company
B) manufacturer
C) service company
D) retailer
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

11) GAAP stand for ______________________.
A) Generally Accepted Accounting Practices
B) General Accounting Accepted Practices
C) Generally Accepted Accounting Principles
D) General Accounting Application Practices
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles




3


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College Accounting-
A Practical
A Practical
Approach,Approach,
15th edition
15thbyedition
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12) The purchase of supplies for cash would affect which account category?
A) Assets
B) Liabilities
C) Capital
D) Expense
Answer: A
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Analyze and record transactions and their effects on the financial statements

13) Items owned by the business such as land, supplies and equipment are:
A) Assets
B) Liabilities
C) Owner's Equity
D) Expenses
Answer: A
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

14) Which of the following is NOT an Asset?
A) Cash
B) Accounts Receivable
C) Buildings
D) All of the above are Assets
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

15) If total liabilities increased by $10,000 and the assets increased by $10,000 during the accounting
period, what is the change in the owner's equity amount?
A) No effect on owner's equity
B) Decrease of $10,000
C) Increase of $20,000
D) Decrease of $40,000
Answer: A
Diff: 2
LO: 1-1
AACSB: Analytical Thinking
Learning Outcome: Analyze and record transactions and their effects on the financial statements




4


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