TEST BANK
Survey of Accounting, 7th Edition
by Edmonds & Olds Complete 16 Chapters
1
,TABLE OF CONTENTS
Chapter 1 An Introduction to Accounting
Chapter 2 Accounting for Accruals and Deferrals
Chapter 3 Accounting for Merchandising Businesses
Chapter 4 Internal Controls, Accounting for Cash, and Ethics
Chapter 5 Accounting for Receivables and Inventory Cost Flow
Chapter 6 Accounting for Long-Term Operational Assets
Chapter 7 Accounting for Liabilities
Chapter 8 Proprietorships, Partnerships, and Corporations
Chapter 9 Financial Statement Analysis
Chapter 10 An Introduction to Management Accounting
Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis
Chapter 12 Cost Accumulation, Tracing, and Allocation
Chapter 13 Relevant Information for Special Decisions
Chapter 14 Planning for Profit and Cost Control
Chapter 15 Performance Evaluation
Chapter 16 Planning for Capital Investments
2
,Chap 01 7e
Edmonds
Answers are at the end of each chapter
1) Which of the following groups has the primary responsibility for establishing
generally accepted accounting principles for business entities in the United
States?
A) Securities and Exchange Commission
B) U.S. Congress
C) International Accounting Standards Board
D) Financial Accounting Standards Board
2) The Heritage Company is a manufacturer of office furniture. Which term best
describes Heritage's role in society?
A) Business
B) Regulatory agency
C) Consumer
D) Resource owner
3) Which resource providers lend financial resources to a business with the
expectation of repayment with interest?
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Whichajtypeajofajaccountingajinformationajisajintendedajtoajsatisfyajtheajneedsajofajexterna
lajusersajofa
j ccountingajinformation?
a
A) Costajaccounting
B) Managerialajaccounting
C) Taxajaccounting
D) Financialajaccounting
5) Whichajofajtheajfollowingajisajfalseajregardingajmanagerialajaccountingajinformation?
A) Itajisajoftenajusedajbyajinvestors.
B) Itajisajmoreajdetailedajthanajfinancialajaccountingajinformation.
C) Itajcanajincludeajnonfinancialajinformation.
D) Itajfocusesajonajdivisionalajratherajthanajoverallajprofitability.
3
, 6) FinancialajaccountingajstandardsajareajknownajcollectivelyajasajGAAP.ajWhatajdoesajthat
acronymsaj tandajfor?
aj
A) GenerallyajAcceptedajAccountingajPrinciples
B) GenerallyajAppliedajAccountingajProcedures
C) GovernmentallyajApprovedajAccountingajPractices
D) GenerallyajAuthorizedajAuditingajPrinciples
7) International ajaccountingajstandardsajareajformulatedajbyajtheajIASB.ajWhatajdoesajthat
acronymsaj tandajfor?
aj
A) InternationallyajAcceptedajStandardsajBoard
B) InternationalajAccountingajStandardsajBoard
C) InternationalajAccountabilityajStandardsajBureau
D) InternationalajAccountingajandajSustainabilityajBoard
8) JackajHenryajborrowedaj$800,000ajfromajWaltajBankajtoajopenajaajnewajbikeajstoreajcalledaj
WoodenajWheels.ajJackajtransferredaj$650,000ajofajtheajcashajthatajheajborrowedajtoajtheaj
storeajonajtheajfirstajdayo
j fajtheajyear.ajHowajmanyajreportingajentitiesajexistajinajthisajscenari
a
o?
A) Oneajreportingajentity
B) Twoajreportingajentities
C) Threeajreportingajentities
D) Fourajreportingajentities
4
Survey of Accounting, 7th Edition
by Edmonds & Olds Complete 16 Chapters
1
,TABLE OF CONTENTS
Chapter 1 An Introduction to Accounting
Chapter 2 Accounting for Accruals and Deferrals
Chapter 3 Accounting for Merchandising Businesses
Chapter 4 Internal Controls, Accounting for Cash, and Ethics
Chapter 5 Accounting for Receivables and Inventory Cost Flow
Chapter 6 Accounting for Long-Term Operational Assets
Chapter 7 Accounting for Liabilities
Chapter 8 Proprietorships, Partnerships, and Corporations
Chapter 9 Financial Statement Analysis
Chapter 10 An Introduction to Management Accounting
Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis
Chapter 12 Cost Accumulation, Tracing, and Allocation
Chapter 13 Relevant Information for Special Decisions
Chapter 14 Planning for Profit and Cost Control
Chapter 15 Performance Evaluation
Chapter 16 Planning for Capital Investments
2
,Chap 01 7e
Edmonds
Answers are at the end of each chapter
1) Which of the following groups has the primary responsibility for establishing
generally accepted accounting principles for business entities in the United
States?
A) Securities and Exchange Commission
B) U.S. Congress
C) International Accounting Standards Board
D) Financial Accounting Standards Board
2) The Heritage Company is a manufacturer of office furniture. Which term best
describes Heritage's role in society?
A) Business
B) Regulatory agency
C) Consumer
D) Resource owner
3) Which resource providers lend financial resources to a business with the
expectation of repayment with interest?
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Whichajtypeajofajaccountingajinformationajisajintendedajtoajsatisfyajtheajneedsajofajexterna
lajusersajofa
j ccountingajinformation?
a
A) Costajaccounting
B) Managerialajaccounting
C) Taxajaccounting
D) Financialajaccounting
5) Whichajofajtheajfollowingajisajfalseajregardingajmanagerialajaccountingajinformation?
A) Itajisajoftenajusedajbyajinvestors.
B) Itajisajmoreajdetailedajthanajfinancialajaccountingajinformation.
C) Itajcanajincludeajnonfinancialajinformation.
D) Itajfocusesajonajdivisionalajratherajthanajoverallajprofitability.
3
, 6) FinancialajaccountingajstandardsajareajknownajcollectivelyajasajGAAP.ajWhatajdoesajthat
acronymsaj tandajfor?
aj
A) GenerallyajAcceptedajAccountingajPrinciples
B) GenerallyajAppliedajAccountingajProcedures
C) GovernmentallyajApprovedajAccountingajPractices
D) GenerallyajAuthorizedajAuditingajPrinciples
7) International ajaccountingajstandardsajareajformulatedajbyajtheajIASB.ajWhatajdoesajthat
acronymsaj tandajfor?
aj
A) InternationallyajAcceptedajStandardsajBoard
B) InternationalajAccountingajStandardsajBoard
C) InternationalajAccountabilityajStandardsajBureau
D) InternationalajAccountingajandajSustainabilityajBoard
8) JackajHenryajborrowedaj$800,000ajfromajWaltajBankajtoajopenajaajnewajbikeajstoreajcalledaj
WoodenajWheels.ajJackajtransferredaj$650,000ajofajtheajcashajthatajheajborrowedajtoajtheaj
storeajonajtheajfirstajdayo
j fajtheajyear.ajHowajmanyajreportingajentitiesajexistajinajthisajscenari
a
o?
A) Oneajreportingajentity
B) Twoajreportingajentities
C) Threeajreportingajentities
D) Fourajreportingajentities
4
