Test Bank
Financial & Managerial Accounting the Basics for
Business Decision, 20th Edition by Jan Williams
All Chapters 1-26 Covered
1
,TABLE OF CONTENT
Chapter 1: Accounting: Information for Decision Making
Chapter 2: Basic Financial Statements
Chapter 3: The Accounting Cycle: Capturing Economic Events
Chapter 4: The Accounting Cycle: Accruals and Deferrals
Chapter 5: The Accounting Cycle: Reporting Financial Results
COMPREHENSIVE PROBLEM 1: French Broad Equipment Rentals
Chapter 6: Merchandising Activities
Chapter 7: Financial Assets
Chapter 8: Inventories and the Cost of Goods Sold
COMPREHENSIVE PROBLEM 2: Music-Is-Us, Inc.
Chapter 9: Plant and Intangible Assets
Chapter 10: Liabilities
Chapter 11: Stockholder’s Equity: Paid-in Capital
COMPREHENSIVE PROBLEM 3: Mountain Sports, Inc.
Chapter 12: Revenue Recognition and Reporting Results of Operations
Chapter 13: Statement of Cash Flows
Chapter 14: Financial Statement Analysis
COMPREHENSIVE PROBLEMS 4: Home Depot, Inc.
Chapter 15: Global Business and Accounting
Chapter 16: Management Accounting: A Business Partner
Chapter 17: Job Order Cost Systems and Overhead Allocations
Chapter 18: Process Costing
Chapter 19: Costing and the Value Chain
Chapter 20: Cost-Volume-Profit Analysis
Chapter 21: Incremental Analysis
COMPREHENSIVE PROBLEM 5: Jasper Company
Chapter 22: Responsibility Accounting and Transfer Pricing
Chapter 23: Operational Budgeting
Chapter 24: Standard Cost Systems
Chapter 25: Rewarding Business Performance
COMPREHENSIVE PROBLEM 6: Utease Corporation
Chapter 26: Capital Budgeting
APPENDIX A: Home Depot 2018 Financial Statements
APPENDIX B: The Time Value of Money
2
,APPENDIX C: Forms of Business Organization
3
, Answers Included
Appendix B
1) Future value is the amount that must be invested today at a specific interest rate to receive a
particular amount at some future date.
⊚ true
⊚ false
2) The present value of an ordinary annuity is the amount that must be invested today at a
specific interest rate to in order to receive a particular amount at the end of a specified
number of future periods.
⊚ true
⊚ false
3) The future value of an investment gradually increases toward its present value amount.
⊚ true
⊚ false
4) Compound interest assumes that the interest earned on a particular investment is reinvested.
⊚ true
⊚ false
5) Discounting a future value amount will determine its present value amount.
⊚ true
⊚ false
6) The lower the discount rate of an investment, the lower the present value of the investment.
⊚ true
⊚ false
7) Annuities provide a series of cash flows to investors at regular intervals for a specified period
of time.
⊚ true
⊚ false
4
Financial & Managerial Accounting the Basics for
Business Decision, 20th Edition by Jan Williams
All Chapters 1-26 Covered
1
,TABLE OF CONTENT
Chapter 1: Accounting: Information for Decision Making
Chapter 2: Basic Financial Statements
Chapter 3: The Accounting Cycle: Capturing Economic Events
Chapter 4: The Accounting Cycle: Accruals and Deferrals
Chapter 5: The Accounting Cycle: Reporting Financial Results
COMPREHENSIVE PROBLEM 1: French Broad Equipment Rentals
Chapter 6: Merchandising Activities
Chapter 7: Financial Assets
Chapter 8: Inventories and the Cost of Goods Sold
COMPREHENSIVE PROBLEM 2: Music-Is-Us, Inc.
Chapter 9: Plant and Intangible Assets
Chapter 10: Liabilities
Chapter 11: Stockholder’s Equity: Paid-in Capital
COMPREHENSIVE PROBLEM 3: Mountain Sports, Inc.
Chapter 12: Revenue Recognition and Reporting Results of Operations
Chapter 13: Statement of Cash Flows
Chapter 14: Financial Statement Analysis
COMPREHENSIVE PROBLEMS 4: Home Depot, Inc.
Chapter 15: Global Business and Accounting
Chapter 16: Management Accounting: A Business Partner
Chapter 17: Job Order Cost Systems and Overhead Allocations
Chapter 18: Process Costing
Chapter 19: Costing and the Value Chain
Chapter 20: Cost-Volume-Profit Analysis
Chapter 21: Incremental Analysis
COMPREHENSIVE PROBLEM 5: Jasper Company
Chapter 22: Responsibility Accounting and Transfer Pricing
Chapter 23: Operational Budgeting
Chapter 24: Standard Cost Systems
Chapter 25: Rewarding Business Performance
COMPREHENSIVE PROBLEM 6: Utease Corporation
Chapter 26: Capital Budgeting
APPENDIX A: Home Depot 2018 Financial Statements
APPENDIX B: The Time Value of Money
2
,APPENDIX C: Forms of Business Organization
3
, Answers Included
Appendix B
1) Future value is the amount that must be invested today at a specific interest rate to receive a
particular amount at some future date.
⊚ true
⊚ false
2) The present value of an ordinary annuity is the amount that must be invested today at a
specific interest rate to in order to receive a particular amount at the end of a specified
number of future periods.
⊚ true
⊚ false
3) The future value of an investment gradually increases toward its present value amount.
⊚ true
⊚ false
4) Compound interest assumes that the interest earned on a particular investment is reinvested.
⊚ true
⊚ false
5) Discounting a future value amount will determine its present value amount.
⊚ true
⊚ false
6) The lower the discount rate of an investment, the lower the present value of the investment.
⊚ true
⊚ false
7) Annuities provide a series of cash flows to investors at regular intervals for a specified period
of time.
⊚ true
⊚ false
4
