TEST BANK FOR Financial Accounting 11th Edition Robert Libby, Patricia Libby, Frank Hodge Latest Update With All Chapters Questions and Correct Answers 100% Complete Solution

,ACCESS Test Bank for Financial Accounting 11th Edition Libby
f f f f f f f f




Financial Accounting Edition 11 by Libby
f f f f f




CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
f f f f f f f f f f


TRUE/FALSEf-fWritef'T'fiffthefstatementfisftruefandf'F'fiffthefstatementfisffalse.
1) Afbusinessfentity'sfaccountingfsystemfcreatesffinancialfaccountingfreportsfwhichfarefpr
ovidedftofexternalfdecisionfmakers.
⊚f true
⊚f false

2) Businessfmanagersfutilizefinternalfmanagementfreportsftofplanfandfmanagefthefdailyfop
erations.
⊚f true
⊚f false

3) Borrowingfmoneyfisfanfinvestingfactivity.
⊚f true
⊚f false

4) Thefbalancefsheetfincludesfassets,fliabilities,fandfstockholders'fequityfatfafpointfinftime.
⊚f true
⊚f false

5) Revenuefisfrecognizedfwithinfthefincomefstatementfduringfthefperiodfinfwhichfcashfisfcol
lected.
⊚f true
⊚f false

6) Totalfassetsfaref$37,500,ftotalfliabilitiesfaref$20,000fandfcommonfstockfisf$10,000;ftherefore,fret
ainedfearningsfaref$7,500.
⊚f true
⊚f false

7) Forfthefcurrentfyear,fnetfincomefoffCarolfCompanyfisf$20,000fandfdividendsfdeclaredfare
$6,000;ftherefore,fretainedfearningsfhavefincreasedf$26,000fduringfthefyear.
⊚f true
⊚f false

8) Thefincomefstatementfisfafmeasurefoffanfentity'sfeconomicfperformancefforfafperiodfofftime.
⊚f true
⊚f false




Versionf1 1
mynursytest.store

,ACCESS Test Bank for Financial Accounting 11th Edition Libby
f f f f f f f f




Financial Accounting Edition 11 by Libby
f f f f f




9) ThefaccountingfequationfstatesfthatfAssetsf=fLiabilitiesf+fStockholders'fEquity.
⊚f true
⊚f false

10) Afdecisionfmakerfwhofwantsftofunderstandfafcompany'sffinancialfstatementsfmustfcarefullyfrea
dfthefnotesftoftheffinancialfstatementsfbecausefthesefdisclosuresfprovidefusefulfsupplementalfin
formation.
⊚f true
⊚f false

11) Thefbalancefsheetfshowsfwhatfthefcompanyfownsfandfwhatfthefcompanyfowesftofcreditorsfandf
owners.
⊚f true
⊚f false

12) Stockholders'fequityfonfthefbalancefsheetfincludesfcommonfstockfandfretainedfearnings.
⊚f true
⊚f false

13) Thefamountfoffcashfpaidfbyfafbusinessfforfdividendsfwouldfbefreportedfasfanfoperatingfacti
vityfcashfflowfonfthefstatementfoffcashfflows.
⊚f true
⊚f false

14) Afcompany'sfretainedfearningsfbalancefincreasedf$50,000flastfyear;ftherefore,fnetfincomeflastfye
arfmustfhavefbeenf$50,000.
⊚f true
⊚f false

15) Dueftofthefrelationshipsfamongffinancialfstatements,fthefstatementfoffstockholders'fequityflin
ksfthefincomefstatementftofthefbalancefsheet.
⊚f true
⊚f false

16) Thefstatementfoffstockholders'fequityfexplainsfthefchangefinfthefretainedfearningsfbalancefca
usedfbyfstockholderfinvestmentsfandfdividendfdeclarations.
⊚f true
⊚f false




Versionf1 2
mynursytest.store

, ACCESS Test Bank for Financial Accounting 11th Edition Libby
f f f f f f f f




Financial Accounting Edition 11 by Libby
f f f f f




17) ThefFinancialfAccountingfStandardsfBoardf(FASB)fhasfbeenfgivenfthefauthorityfbyfthefSe
curitiesfandfExchangefCommissionf(SEC)ftofdevelopfgenerallyfacceptedfaccountingfprinc
iples.
⊚f true
⊚f false

18) IffafU.S.fdomesticfcompanyfdoesfbusinessfinfafforeignfcountry,fthefSecuritiesfandfExchangefCo
mmissionf(SEC)frequiresfthefusefoffInternationalfFinancialfReportingfStandardsf(IFRS)fforfthef
company'sffinancialfreportingfinfthefU.S.
⊚f true
⊚f false

19) InfthefUnitedfStates,fgenerallyfacceptedfaccountingfprinciplesfarefpublishedfinfthefFASBfAc
countingfStandardsfCodification.
⊚f true
⊚f false

20) Thefprimaryfresponsibilityfforfthefcontentfofftheffinancialfstatementsfliesfwithfthefexternalfaud
itor.
⊚f true
⊚f false

21) Anfauditfisfanfexaminationfofftheffinancialfstatementsftofensurefthatftheyfrepresentfwhatftheyfclai
mfandftofmakefsurefthatftheyfarefinfcompliancefwithfgenerallyfacceptedfaccountingfprinciples.
⊚f true
⊚f false

22) Auditorsfcanfbefheldflegallyfliablefforffraudulentffinancialfstatements.
⊚f true
⊚f false

23) Onefoffthefadvantagesfoffafcorporationfwhenfcomparedftofafpartnershipfisftheflimitedfliabilityfofft
hefowners.
⊚f true
⊚f false




Versionf1 3
mynursytest.store