TEST BANK
Survey of Accounting, 7th Edition
by Edmonds & Olds Complete 16 Chapters
1
,TABLE OF CONTENTS qd qd qd
Chapter 1 An Introduction to Accounting
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Chapter 2 Accounting for Accruals and Deferrals
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Chapter 3 Accounting for Merchandising Businesses
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Chapter 4 Internal Controls, Accounting for Cash, and Ethics
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Chapter 5 Accounting for Receivables and Inventory Cost Flow
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Chapter 6 Accounting for Long-Term Operational Assets
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Chapter 7 Accounting for Liabilities
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Chapter 8 Proprietorships, Partnerships, and Corporations
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Chapter 9 Financial Statement Analysis
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Chapter 10 An Introduction to Management Accounting
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Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis
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Chapter 12 Cost Accumulation, Tracing, and Allocation
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Chapter 13 Relevant Information for Special Decisions
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Chapter 14 Planning for Profit and Cost Control
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Chapter 15 Performance Evaluation
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Chapter 16 Planning for Capital Investments
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2
,Chap 01 7e Edmond
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Answers are at the end of each chapter qd qd qd qd qd qd qd
1) Which of the following groups has the primary responsibility for establishing gene
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rallyaccepted accounting principles for business entities in the United States?
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A) Securities and Exchange Commission qd qd qd
B) U.S. Congress qd
C) International Accounting Standards Board qd qd qd
D) Financial Accounting Standards Board qd qd qd
2) The Heritage Company is a manufacturer of office furniture. Which term best des
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cribesHeritage's role in society?
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A) Business
B) Regulatory agency qd
C) Consumer
D) Resource owner qd
3) Which resource providers lend financial resources to a business with the expecta
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tion ofrepayment with interest?
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A) Consumers
B) Creditors
C) Investors
D) Owners
4) Which type of accounting information is intended to satisfy the needs of external us
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ers ofaccounting information?
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A) Cost accounting qd
B) Managerial accounting qd
C) Tax accounting qd
D) Financial accounting qd
5) Which of the following is false regarding managerial accounting information?
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A) It is often used by investors.
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B) It is more detailed than financial accounting information.
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C) It can include nonfinancial information.
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D) It focuses on divisional rather than overall profitability.
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3
, 6) Financial accounting standards are known collectively as GAAP. What does that ac
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ronymstand for? d
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A) Generally Accepted Accounting Principles qd qd qd
B) Generally Applied Accounting Procedures qd qd qd
C) Governmentally Approved Accounting Practices qd qd qd
D) Generally Authorized Auditing Principles qd qd qd
7) International accounting standards are formulated by the IASB. What does that ac
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ronymstand for? d
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A) Internationally Accepted Standards Board qd qd qd
B) International Accounting Standards Board qd qd qd
C) International Accountability Standards Bureau qd qd qd
D) International Accounting and Sustainability Board qd qd qd qd
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Woo
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den Wheels. Jack transferred $650,000 of the cash that he borrowed to the store on t
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he first dayof the year. How many reporting entities exist in this scenario?
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A) One reporting entity qd qd
B) Two reporting entities qd qd
C) Three reporting entities qd qd
D) Four reporting entities qd qd
4
Survey of Accounting, 7th Edition
by Edmonds & Olds Complete 16 Chapters
1
,TABLE OF CONTENTS qd qd qd
Chapter 1 An Introduction to Accounting
qd qd qd qd qd
Chapter 2 Accounting for Accruals and Deferrals
qd qd qd qd qd qd
Chapter 3 Accounting for Merchandising Businesses
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Chapter 4 Internal Controls, Accounting for Cash, and Ethics
qd qd qd qd qd qd qd qd
Chapter 5 Accounting for Receivables and Inventory Cost Flow
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Chapter 6 Accounting for Long-Term Operational Assets
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Chapter 7 Accounting for Liabilities
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Chapter 8 Proprietorships, Partnerships, and Corporations
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Chapter 9 Financial Statement Analysis
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Chapter 10 An Introduction to Management Accounting
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Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis
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Chapter 12 Cost Accumulation, Tracing, and Allocation
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Chapter 13 Relevant Information for Special Decisions
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Chapter 14 Planning for Profit and Cost Control
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Chapter 15 Performance Evaluation
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Chapter 16 Planning for Capital Investments
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2
,Chap 01 7e Edmond
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s
Answers are at the end of each chapter qd qd qd qd qd qd qd
1) Which of the following groups has the primary responsibility for establishing gene
qd qd qd qd qd qd qd qd qd qd qd
rallyaccepted accounting principles for business entities in the United States?
d
q qd qd qd qd qd qd qd qd qd
A) Securities and Exchange Commission qd qd qd
B) U.S. Congress qd
C) International Accounting Standards Board qd qd qd
D) Financial Accounting Standards Board qd qd qd
2) The Heritage Company is a manufacturer of office furniture. Which term best des
qd qd qd qd qd qd qd qd qd qd qd qd
cribesHeritage's role in society?
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q qd qd qd
A) Business
B) Regulatory agency qd
C) Consumer
D) Resource owner qd
3) Which resource providers lend financial resources to a business with the expecta
qd qd qd qd qd qd qd qd qd qd qd
tion ofrepayment with interest?
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q qd qd
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Which type of accounting information is intended to satisfy the needs of external us
qd qd qd qd qd qd qd qd qd qd qd qd qd
ers ofaccounting information?
qd d
q qd
A) Cost accounting qd
B) Managerial accounting qd
C) Tax accounting qd
D) Financial accounting qd
5) Which of the following is false regarding managerial accounting information?
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A) It is often used by investors.
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B) It is more detailed than financial accounting information.
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C) It can include nonfinancial information.
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D) It focuses on divisional rather than overall profitability.
qd qd qd qd qd qd qd
3
, 6) Financial accounting standards are known collectively as GAAP. What does that ac
qd qd qd qd qd qd qd qd qd qd qd
ronymstand for? d
q qd
A) Generally Accepted Accounting Principles qd qd qd
B) Generally Applied Accounting Procedures qd qd qd
C) Governmentally Approved Accounting Practices qd qd qd
D) Generally Authorized Auditing Principles qd qd qd
7) International accounting standards are formulated by the IASB. What does that ac
qd qd qd qd qd qd qd qd qd qd qd
ronymstand for? d
q qd
A) Internationally Accepted Standards Board qd qd qd
B) International Accounting Standards Board qd qd qd
C) International Accountability Standards Bureau qd qd qd
D) International Accounting and Sustainability Board qd qd qd qd
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Woo
qd qd qd qd qd qd qd qd qd qd qd qd qd qd
den Wheels. Jack transferred $650,000 of the cash that he borrowed to the store on t
qd qd qd qd qd qd qd qd qd qd qd qd qd qd qd
he first dayof the year. How many reporting entities exist in this scenario?
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q qd qd qd qd qd qd qd qd qd qd
A) One reporting entity qd qd
B) Two reporting entities qd qd
C) Three reporting entities qd qd
D) Four reporting entities qd qd
4
