TEST BANK for Financial Accounting
13th Edition
by C William Thomas and Wendy M. Tietz
Verified Chapter's 1 - 12 | Complete
,TABLE OF CONTENTS
1. The Financial Statements
2. Transaction Analysis
3. Accrual Accounting and Income
4. Internal Control and Cash
5. Receivables and Revenue
6. Inventory and Cost of Goods Sold
7. Plant Assets, Natural Resources, and Intangibles
8. Current and Contingent Liabilities
9. Long-Term Liabilities
10. Stockholders' Equity
11. The Statement of Cash Flows
12. Financial Statement Analysis
,1. The Financial Statements
Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
Financial Accounting, 13e (Thomas/Tietz)
Chapter 1 The Financial Statements
Learning Objective 1-1
1) Accounting is an information system that measures business activities.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
2) Bookkeeping is a mechanical part of accounting.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3) Accounting is often called the language of business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
4) Accounting produces financial statements, which report information about a business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
5) Theaccountingprocessbegins and ends with peoplemakingdecisions.
* * * * * * * * * *
Answer: TRUE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking
* *
AICPA Bus Persp: Legal/Regulatory
* * * *
AICPA Functional: Measurement
* *
, 6) Accountinginformation is usedbyinvestors andcreditors, butnotbyregulatory bodies.
* * * * * * * * * * * * *
Answer: FALSE *
Explanation: It is usedbyindividuals, investors,creditors, nonprofits, and regulatorybodies.
* * * * * * * * * * *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: IndustrySector, Legal/RegulatoryAICPA
* * * * * * *
Functional: Measurement, Reporting * *
7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
* * * * * * * * * * * * * * * * * *
accountinginformation. *
Answer: FALSE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: IndustrySector, Legal/RegulatoryAICPA
* * * * * * *
Functional: Measurement, Reporting * *
8) The business records of a sole proprietorship should include the proprietor's personal finances.
* * * * * * * * * * * * *
Answer: FALSE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: Legal/Regulatory
* * * *
AICPA Functional: Measurement
* *
9) Apartnership isataxpaying entity.
* * * * * *
Answer: FALSE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: Legal/Regulatory
* * * *
AICPA Functional: Measurement
* *
10) Stockholdershave nopersonalobligation for thecorporation'sdebts. * * * * * * * * *
Answer: TRUE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: Legal/Regulatory
* * * *
AICPA Functional: Measurement
* *
11) Accounting:
A) measuresbusinessactivities. * *
B) processes data intoreports andcommunicates thedata to decision makers.
* * * * * * * * * *
C) is often called thelanguage ofbusiness.
* * * * * *
D) is alloftheabove.
* * * * *
Answer: D *
Diff: 2
*
LO: 1-1 *
13th Edition
by C William Thomas and Wendy M. Tietz
Verified Chapter's 1 - 12 | Complete
,TABLE OF CONTENTS
1. The Financial Statements
2. Transaction Analysis
3. Accrual Accounting and Income
4. Internal Control and Cash
5. Receivables and Revenue
6. Inventory and Cost of Goods Sold
7. Plant Assets, Natural Resources, and Intangibles
8. Current and Contingent Liabilities
9. Long-Term Liabilities
10. Stockholders' Equity
11. The Statement of Cash Flows
12. Financial Statement Analysis
,1. The Financial Statements
Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
Financial Accounting, 13e (Thomas/Tietz)
Chapter 1 The Financial Statements
Learning Objective 1-1
1) Accounting is an information system that measures business activities.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
2) Bookkeeping is a mechanical part of accounting.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3) Accounting is often called the language of business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
4) Accounting produces financial statements, which report information about a business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
5) Theaccountingprocessbegins and ends with peoplemakingdecisions.
* * * * * * * * * *
Answer: TRUE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking
* *
AICPA Bus Persp: Legal/Regulatory
* * * *
AICPA Functional: Measurement
* *
, 6) Accountinginformation is usedbyinvestors andcreditors, butnotbyregulatory bodies.
* * * * * * * * * * * * *
Answer: FALSE *
Explanation: It is usedbyindividuals, investors,creditors, nonprofits, and regulatorybodies.
* * * * * * * * * * *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: IndustrySector, Legal/RegulatoryAICPA
* * * * * * *
Functional: Measurement, Reporting * *
7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
* * * * * * * * * * * * * * * * * *
accountinginformation. *
Answer: FALSE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: IndustrySector, Legal/RegulatoryAICPA
* * * * * * *
Functional: Measurement, Reporting * *
8) The business records of a sole proprietorship should include the proprietor's personal finances.
* * * * * * * * * * * * *
Answer: FALSE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: Legal/Regulatory
* * * *
AICPA Functional: Measurement
* *
9) Apartnership isataxpaying entity.
* * * * * *
Answer: FALSE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: Legal/Regulatory
* * * *
AICPA Functional: Measurement
* *
10) Stockholdershave nopersonalobligation for thecorporation'sdebts. * * * * * * * * *
Answer: TRUE *
Diff: 1
*
LO: 1-1 *
AACSB: Reflective Thinking * *
AICPA Bus Persp: Legal/Regulatory
* * * *
AICPA Functional: Measurement
* *
11) Accounting:
A) measuresbusinessactivities. * *
B) processes data intoreports andcommunicates thedata to decision makers.
* * * * * * * * * *
C) is often called thelanguage ofbusiness.
* * * * * *
D) is alloftheabove.
* * * * *
Answer: D *
Diff: 2
*
LO: 1-1 *
