Test Bank for Intermediate Financial Management, 17th Edition, Eugene F. Brigham, Phillip R. Daves.pdf

, TESTkBANK




IntermediatekFinanci
alkAccountingkPartk1
A




ZEUSkVERNONkB.kMILLAN

, ALLkRIGHTSkRESERVEDk201
5


Nokpartkofkthiskworkkcoveredkbykthekcopyrightk
hereonkmaykbekreproducedkorkusedkinkanykfor
mkorkbykanykmeansk-
kelectronickorkmechanical,kincludingkphotocop

yingk–
kwithoutkthekwrittenkpermissionkofkthekauthor.




ISBNk 978-621-95096-0-2


Publishedkby:
BANDOLINkENTERPRISE
No.k100kMontebellokVillage,kBakakengkSur,kBaguiokCityk2600,kPhilippines

TABLEkOFkCONTENTS

CHAPTERk1
OVERVIEWkOFkACCOUNTING ............................................................3
CHAPTER 1: THEORY OF ACCOUNTS REVIEWER ............................................. 3
K K K K K


CHAPTER 1 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS
K K K K K K K K K 22
CHAPTERk2
THEkACCOUNTINGkPROCESS .......................................................... 24
CHAPTER 2: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 24
CHAPTER 2: THEORY OF ACCOUNTS REVIEWER .......................................... 26
K K K K K


CHAPTER 2 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 36
K K K K K K K K K



CHAPTERk3
THEkCONCEPTUALkFRAMEWORKkFORkFINANCIALkREPORTINGk36
CHAPTER 3: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 36
CHAPTER 3: THEORY OF ACCOUNTS REVIEWER .......................................... 37
K K K K K


CHAPTER 3 - SUGGESTED ANSWERS TO REVIEW THEORY QUESTIONS .... 54
K K K K K K K K



CHAPTERk4
CASHk&kCASHkEQUIVALENTS ....................................................... 54
CHAPTER 4: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 54
CHAPTER 4: THEORY OF ACCOUNTS REVIEWER .......................................... 57
K K K K K


CHAPTER 4 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 65
K K K K K K K K K



CHAPTERk5
RECEIVABLESk(PARTk1).................................................................. 66
CHAPTER 5: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 66
CHAPTER 5: THEORY OF ACCOUNTS REVIEWER .......................................... 69
K K K K K


CHAPTER 5 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 75
K K K K K K K K K



CHAPTERk6
RECEIVABLESk(PARTk2).................................................................. 75
CHAPTER 6: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 75
CHAPTER 6: THEORY OF ACCOUNTS REVIEWER .......................................... 78
K K K K K


CHAPTER 6 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 82
K K K K K K K K K



CHAPTERk7

, CHAPTER 7 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS
K K K K K K K K K 92
CHAPTERk k k k k k k k k k k k k k k k k k k k k k k k k 8k k INVENTORI
ES ...................................................................................................... 92
CHAPTER 8: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 92
CHAPTER 8: THEORY OF ACCOUNTS REVIEWER .......................................... 97
K K K K K


CHAPTER 8 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 109
K K K K K K K K K



CHAPTERk9
INVESTMENTSk(PARTk1) .............................................................. 109
CHAPTER 9: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 109
CHAPTER 9: THEORY OF ACCOUNTS REVIEWER ........................................112
K K K K K


CHAPTER 9 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 122
K K K K K K K K K



CHAPTERk10
INVESTMENTSk(PARTk2) .............................................................. 122
CHAPTER 10: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 122
CHAPTER 10: THEORY OF ACCOUNTS REVIEWER .....................................127
K K K K K


CHAPTER 10 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 134
K K K K K K K K K



CHAPTERk11
INVESTMENTSk(PARTk3) .............................................................. 135
CHAPTER 11: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
K K K K K K K K K K K K 135
CHAPTER 11: THEORY OF ACCOUNTS REVIEWER .....................................135
K K K K K


CHAPTER 11 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 137
K K K K K K K K K




Chapterk1kOverv
iewkofkAccounting
Chapterk1:kTheorykofkAccountskReviewe
rkDefinitionkofkAccounting
1. Accountingkhaskbeenkgivenkvariouskdefinitions,kwhichkofkthekfollowingkisknotkonekofkthosekdefinitions
a. Accountingkiskakservicekactivity.kItskfunctionkisktokprovidekquantitativekinformation,kprimarilykfinancialkinkna
ture,kaboutkeconomickentitieskthatkiskintendedktokbekusefulkinkmakingkeconomickdecisions.
b. Accountingkiskthekartkofkrecording,kclassifying,kandksummarizingkinkaksignificantkmannerkandkinktermskofkmo
ney,ktransactionskandkeventskwhichkare,kinkpartkofkatkleast,kofkakfinancialkcharacterkandkinterpretingkthekresu
ltskthereof.
c. Accountingkiskaksystematickprocesskofkobjectivelykobtainingkandkevaluatingkevidencekregardingkassertionska
boutkeconomickactionskandkeventsktokascertainkthekdegreekofkcorrespondencekbetweenkthesekassertionsk an
dkestablishedkcriteriakandkcommunicatingkthekresultsktokinterestedkusers.
d. Accountingkiskthekprocesskofkidentifying,kmeasuring,kandkcommunicatingkeconomickinformationktokpermitkin
formedkjudgmentkandkdecisionskbykuserskofkinformation.

2. Itk isk thek firstk processk usedk ink accounting.k Itk refersk tok thek identificationk ofk eventsk ask tok whetherk theyk arek
recognizedkorknotkinkthekfinancialkstatements.
a.kIdentifying b.kMeasuringk c.kCommunicating d.kAuditing

3. Thekfollowingkstatementskcorrectlykreferktokthekaccountingkprocess.
I. Measuringkiskthekaccountingkprocesskofkanalyzingkbusinesskactivitieskasktokwhetherkorknotktheykwillkbekreco
gnizedkinkthekbooks.
II. Recognitionkrefersktokthekprocesskofkincludingkthekeffectskofkankeventkinkthektotalskofkthekstatementkofkfinanci
alkpositionkorkthekstatementkofkprofitkorklosskandkotherkcomprehensivekincomekthroughkmemok entries.
III. Disclosurekofkeventskinktheknotesktokfinancialkstatementkwithoutkincludingkinkthektotalskofkthekstatementkofkfi
nancialkpositionkorkstatementkofkprofitkorklosskandkotherkcomprehensivekincomekisknotkankapplicationkofkthek
recognitionkprinciple.
IV. Ankaccountablekeventkiskankeventkthatkhaskankeffectkonkthekassets,kliabilitieskorkequitykofkankentitykandkitskeff
ectkcankbekmeasuredkreliably.
V. Sociologicalkandkpsychologicalkmatterskarekwithinkthekscopekofkaccounting.
a.kI,kII,kIII,kIV,kV b.kI,kII,kIII,kIV c.kIV d.kIII,kIV

TypeskofkEvents