Test Bank for College Accounting: A Practical Approach 14th Edition by Jeffrey Slater, Mike Deschamps, All Chapters

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College Accounting: A Practical Approach 14th Edition
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by Jeffrey Slater, Mike Deschamps
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All Chapters (1-25)
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INSTANT DOWNLOAD
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COMPLETE CHAPTERS
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COMPLETE ANSWERS
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All Chapters Included
College Accounting, 14e (Slater)
Chapter 1 A c co u nt i ng Concepts and Procedures
All Answers Included
1.1 Learning Objective 1-1

1) The type of business organization that can continue indefinitely is known as a:
A) corporation.
B) partnership.
C) sole proprietorship.
D) All of the above
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Answer: C
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
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Learning Outcome: Define accounting terms, accounting concepts and principles

2) The purpose of the accounting process is to provide financial information about:
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A) sole proprietorships.
B) small businesses.
C) large corporations.
D) All of these answers are correct.
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Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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3) Accounting provides information to:
A) investors.
B) government.
C) managers.
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D) All of these answers are correct.
Answer: D
Diff: 2
LO: 1-1
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AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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4) Which of the following is a characteristic of a sole proprietorship?
A) Business owned by more than one person
B) Easy to form
C) Each stockholder acts as an owner of the company
D) Can continue indefinitely
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles




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5) A partnership is a business which:
A) is easy to form.
B) ends with the death of a partner.
C) is owned by more than one person.
D) All of these answers are correct.
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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6) Which is an advantage of a sole proprietorship form of business?
A) There is limited personal risk.
B) The business can continue indefinitely.
C) The owner makes all the decisions.
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D) The business is legally separate from the owner.
Answer: C
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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7) Which of the following is NOT a type of business organization?
A) Corporation
B) Partnership
C) Sole proprietorship
D) An Accounting organization
Answer: D
D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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8) A corporation:
A) is legally separate from its owners.
B) is owned by stockholders.
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C) has limited risk to stockholders.
D) All of the above
Answer: D
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Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles




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9) The Sarbanes-Oxley Act was passed to:
A) prevent financial statement fraud at public companies.
B) replace inventory accounting procedures.
C) improve the accuracy of the company's financial reporting.
D) Both A and C are correct.
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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10) A law firm would be considered a:
A) merchandise company.
B) manufacturer.
C) service company.
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D) retailer.
Answer: C
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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11) Generally Accepted Accounting Principles are the procedures and guidelines that must be followed
every other year.
Answer: FALSE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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12) The function of accounting includes analyzing, recording, classifying, summarizing, reporting,
strategic management and environmental assessment.
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Answer: FALSE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
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Learning Outcome: Define accounting terms, accounting concepts and principles

13) A sole proprietorship ends with the death of the owner.
Answer: TRUE
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Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles




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