Test Bank for Financial Accounting 7th Canadian Edition by Kimmel

Test Bank for Financial Accounting 7th Canadian Edition by Kimmel. Accounting identifies and records economic events of a business. Answer: True Difficulty: Easy Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Ethics and Accounting Information Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic 2) High standards of ethics are not required for preparers of financial information. Answer: False Difficulty: Easy Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Ethics and Accounting Information Bloomcode: Comprehension CPA: Financial Reporting AACSB: Analytic 3) Accounting information is not important to marketing managers. Answer: False Difficulty: Easy Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Internal Users Bloomcode: Comprehension CPA: Financial Reporting AACSB: Analytic 4) Authorities, such as the Canada Revenue Agency, want to know whether a business complies with the tax laws. Answer: True Difficulty: Easy Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: External Users Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic 5) Accounting communicates financial information about a business to both internal and external users. Answer: True Difficulty: Easy Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Ethics and Accounting Information Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic 6) Two internal users of accounting information are investors and managers. Answer: False Difficulty: Easy Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Internal Users Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic 7) Accounting provides financial comparisons of operating alternatives, projections of income from new sales campaigns, analyses of sales costs, and forecasts of cash needs for external users. Answer: False Difficulty: Medium Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Ethics and Accounting Information Bloomcode: Comprehension Full file at https://TestbankD CPA: Financial Reporting AACSB: Analytic Feedback: Accounting provides financial comparisons of operating alternatives, projections of income from new sales campaigns, analyses of sales costs, and forecasts of cash needs for internal users. 8) Companies present summarized financial information in the form of financial statements for both internal and external use. Answer: True Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Ethics and Accounting Information Difficulty: Medium Bloomcode: Comprehension CPA: Financial Reporting AACSB: Analytic 9) Anyone who works for a company but does not necessarily have access to accounting information to assist them in managing and operating the company is still considered to be an internal user. Answer: False Difficulty: Medium Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Internal Users Bloomcode: Comprehension CPA: Financial Reporting AACSB: Analytic Feedback: Anyone who works for a company but does not necessarily have access to accounting information to assist them in managing and operating the company is considered to be an external user. 10) Potential employees who use annual reports to learn about the company and evaluate job prospects are regarded as external users. Answer: True Difficulty: Medium Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: External Users Bloomcode: Comprehension CPA: Financial Reporting AACSB: Analytic 11) As labour unions represent employees they are also regarded as internal users. Answer: False Difficulty: Medium Learning Objective 1: Identify the uses and users of accounting information. Section Reference 1: Internal Users Bloomcode: Comprehension CPA: Financial Reporting AACSB: Analytic Feedback: Labour unions who represent employees are regarded as external users. 12) A partnership is a business organized as a separate legal entity. Answer: False Difficulty: Easy Learning Objective 1: Describe the primary forms of business organization. Section Reference 1: Partnerships Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic 13) A proprietor has unlimited liability. Answer: True Difficulty: Easy Learning Objective 1: Describe the primary forms of business organization. Section Reference 1: Proprietorships Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic 14) The liability of corporate shareholders is limited to the amount of their investment. Answer: True Difficulty: Easy Full file at https://TestbankD Learning Objective 1: Describe the primary forms of business organization. Section Reference 1: Corporations Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic 15) The users of private company financial statements do not have access to financial information beyond that available to the users of public company financial statements. Answer: False Difficulty: Medium Learning Objective 1: Describe the primary forms of business organization. Section Reference 1: Proprietorships Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic 16) A proprietorship is usually operated by the owner. Answer: True Difficulty: Easy Learning Objective 1: Describe the primary forms of business organization. Section Reference 1: Proprietorships Bloomcode: Knowledge CPA: Financial Reporting AACSB: Analytic We offer online tutoring, help with assignments and essay writing for all Majors with a guaranteed pass. For assistance Contact Tutor Lucas: