Test Bank For Fundamental Accounting Principles, 25th Edition by John Wild and Ken Shaw, Kermit Larson

TEST BANK FOR
v v




Fundamental Accounting Principles, 25th Edition, John WildC
v v v v v v v




hapter 1-26 Answers at the End of Each Chapter
v v v v v v v v




Chapter 01: v




Student name:
v v




1) Whichvofvthevfollowingvisvnotvaccomplishedvbyvaccounting?

A) Identifiesvbusinessvactivities.
B) Recordsvbusinessvactivities.
C) Communicatesvbusinessvactivities.
D) Eliminatesvthevneedvforvinterpretingvfinancialvdata.
E) Helpsvpeoplevmakevbettervdecisions.




2) Whichvofvthevfollowingvisvanvexternalvuservofvaccountingvinformation?


A) Purchasingvmanager.
B) Humanvresourcevmanager.
C) Lender.
D) Chiefvexecutivevofficerv(CEO).
E) Marketingvmanager.




3) Thevprimaryvobjectivevofvfinancialvaccountingvisvto:

A) Servevthevdecision-makingvneedsvofvinternalvusers.
B) Providevaccountingvinformationvthatvservesvexternalvusers.
C) Monitorvconsumervneeds,vtastes,vandvpricevconcerns.
D) Providevinformationvonvbothvthevcostsvandvbenefitsvofvlookingvaftervproductsvandvs
ervices.
E) Knowvwhat,vwhen,vandvhowvmuchvproductvtovproduce.

,4) Thevareavofvaccountingvaimedvatvservingvthevdecision-makingvneedsvofvinternalvusersvis:

A) Financialvaccounting.
B) Managerialvaccounting.
C) Externalvauditing.
D) SECvreporting.
E) Bookkeeping.




5) Whichvofvthevfollowingvisv notvanvexternalvuservofvaccountingvinformation?


A) Shareholders.
B) Customers.
C) Purchasingvmanagers.
D) Governmentvregulators.
E) Creditors.




6) WhichvofvthevfollowingvisvnotvtruevregardingvavCertifiedvPublicvAccountant?

A) Mustvmeetveducationvrequirements.
B) Mustvpassvanvexamination.
C) Mustvexhibitvethicalvcharacter.
D) Mustvmeetvexperiencevrequirements.
E) CannotvholdvanyvcertificatevothervthanvavCPA.




7) Whichvofvthevfollowingvfactorsvisvnotvavcomponentvofvthevfraudvtriangle?

, A) Opportunity
B) Pressure
C) Rationalization
D) Allvofvthevabovevarevcomponentsvofvthevfraudvtriangle.




8) Whichvofvthevfollowingvisvnotvtruevregardingvethics:

A) Ethicsvarevbeliefsvthatvseparatevrightvfromvwrong.
B) Goodvethicsvarevgoodvbusiness.
C) Ethicsvdovnotvaffectvthevoperationsvorvoutcomevofvavcompany.
D) Accountantsvfacevethicalvchoicesvasvtheyvpreparevfinancialvreports.
E) Ethicsvarevacceptedvstandardsvofvgoodvandvbadvbehavior.




9) Avcorporationvis:

A) Avbusinessvlegallyvseparatevfromvitsvowners.
B) ControlledvbyvthevFASB.
C) Notvresponsiblevforvitsvownvactsvandvownvdebts.
D) Thevsamevasvavlimitedvliabilityvpartnership.
E) Notvsubjectvtovdoublevtaxation.




10) Thevgroupvthatvsetsvinternationalvpreferredvaccountingvpracticesvisvcalledvthe:

A) AICPA.
B) IASB.
C) CAP.
D) SEC.
E) FASB.

, 11) ThevSecuritiesvandvExchangevCommissionv(SEC)vhasvgivenvthevtaskvofvsettingvGAAPvtovt
he:

A) APB.
B) FASB.
C) AAA.
D) AICPA.
E) IASB.




12) Thevaccountingvconceptvthatvrequiresveveryvbusinessvtovbevaccountedvforvseparatelyvfromvo
thervbusinessventities,vincludingvitsvownervorvownersvisvknownvasvthe:

A) Time-periodvassumption.
B) Businessventityvassumption.
C) Going-concernvassumption.
D) Revenuevrecognitionvprinciple.
E) Measurementv(Cost)vprinciple.




13) Thevrulevthatvrequiresvfinancialvstatementsvtovassumevthatvthevbusinessvwillvcontinuevo
peratingvinsteadvofvbeingvclosedvorvsoldvisvthe:

A) Going-concernvassumption.
B) Businessventityvassumption.
C) Objectivityvprinciple.
D) Measurementv(Cost)vprinciple.
E) Monetaryvunitvassumption.




14) Ifvavcompanyvisvconsideringvthevpurchasevofvavparcelvofvlandvthatvwasvoriginallyvacquiredvb
yvthevsellervforv$100,000,visvcurrentlyvofferedvforvsalevatv$180,000,visvconsideredvbyvthevpurchaserv
asveasilyvbeingvworthv$170,000,vandvisvfinallyvpurchasedvforv$167,000,vthevlandvshouldvbevrecorded
vinvthevpurchaser’svbooksvat: