TEST BANK AND SOLUTIONS FOR FUNDAMENTAL ACCOUNTING PRINCIPLES VOL 1, 16TH EDITIONBY LARSON|QUESTIONS AND CORRECT ANSWERS 2025|100% PASS|A+ GUARANTEED

TEST BANK AND SOLUTIONS FOR
FUNDAMENTAL ACCOUNTING PRINCIPLES
VOL 1, 16TH EDITIONBY LARSON|QUESTIONS
AND CORRECT ANSWERS 2025|100% PASS|A+
GUARANTEED

, Chapter 01
Accounting in Business




True / False Questions


1. Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
TRUE




Accessibility: Keyboard
Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and
importance of accounting. Topic: 01-02 Power of
Accounting



2. Accounting information helps people make better decisions about the performance of a
business.
TRUE




Accessibility: Keyboard
Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and
importance of accounting. Topic: 01-02 Power of
Accounting



3. The main objective of accounting is to help people to invest in new products and
businesses.
FALSE

,Accessibility: Keyboard
Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and
importance of accounting. Topic: 01-07 External
Information Users

1-1

, 4. Recordkeeping" is another term for "accounting".
FALSE



Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Describe the purpose and importance of accounting.
Topic: 01-03 Focus of Accounting



5. A sole proprietorship is a business owned by one or more persons.
FALSE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations



6. A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business licence.
TRUE


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations



7. Ownership of a corporation is divided into units called shares.
TRUE




Accessibility: Keyboard
Navigation Blooms:
Remember
Difficulty: Easy
Learning Objective: 01-02 Describe forms of
business organization. Topic: 01-05 Business
Organizations