TEST BANK For College Accounting, 26th Edition by David Haddock, John Price, Chapters 1-30 Complete

TESTBANKFORACCOUNTING,25TH ED
p p p p p




ITION

,Chapter 1--Introduction to Accounting and Business
p p p p p




Student:p

1. Thepmainpobjectivepofpapnot-for-
profitpbusinesspispnotptopmakepapprofit.pTrue False



2. Anpexamplepofpanpexternalpuserpofpaccountingpinformationpispthepfederalpgovernment.p
True False



3. Apcorporationpispapbusinesspthatpisplegallypseparatepandpdistinctpfrompitspowners.p
True False



4. Aboutp90%pofpthepbusinessespinpthepUnitedpStatespareporganizedpaspcorporations.p
True False



5. Theprolepofpaccountingpisptopprovidepmanypdifferentpuserspwithpfinancialpinformationptopmakepeconomicpd
ecisions.
True False



6. Proprietorshipsparepownedpbyponepownerpandpprovideponlypservicesptoptheirpcustomers.p
True False



7. OnlyplargepcompaniespsuchpaspWal-
Mart,pJCP,pGeneralpMotors,pandpthepBankpofpAmericapcanpbeporganizedpaspcorporations.
True False



8. Accountingpinformationpuserspneedpreportspaboutpthepeconomicpactivitiespandpconditionpofpbusinesses.p
True False

,9. Seniorpexecutivespcannotpbepcriminallypprosecutedpforpthepwrongpdoingsptheypcommitponpbehalfpofpthepc
ompaniespwhereptheypwork.
True False



10. Thepprimaryprolepofpaccountingpisptopdeterminepthepamountpofptaxespapbusinesspwillpbeprequiredptoppayptopta
xingpentities.
True False



11. Anpaccountpreceivablepisptypicallypclassifiedpaspaprevenue.p
True False



12. Managerialpaccountingpinformationpispusedpbypexternalpandpinternalpuserspequally.p
True False



13. Financialpaccountingpprovidespinformationptopallpusers,pwhilepthepmainpfocuspforpmanagerialpaccountingpisptopp
rovidepinformationptopthepmanagement.
True False



14. Properpethicalpconductpimpliespthatpyouponlypconsiderpwhat'spinpyourpbestpinterest.p
True False



15. Somepofpthepmajorpfraudulentpactspbypseniorpexecutivespstartedpaspwhatptheypconsideredptopbepsmallpethicalpl
apsespwhichpgrewpoutpofpcontrol.
True False



16. Twopfactorspthatptypicallypleadptopethicalpviolationspareprelevancepandptimelinesspofpaccountingpinformation.p
True False



17. Apbusinesspispanporganizationpinpwherepbasicpresourcesporpinputs,plikepmaterialspandplabor,parepassembledpandpp
rocessedptopprovidepoutputspinpthepformpofpgoodsporpservicesptopcustomers.
True False

, 18. ThepFinancialpAccountingpStandardspBoardp(FASB)pispthepauthoritativepbodypthatphaspprimarypresponsibilitypf
orpdevelopingpaccountingpprinciples.
True False



19. Thepcostpconceptpispthepbasispforpenteringpthepexchangeppricepintopthepaccountingprecords.p
True False



20. Thepunitpofpmeasurementpconceptprequirespthatpeconomicpdatapbeprecordedpinpapcommonpunitpofp
measurement.
True False



21. Ifpapbuildingpispappraisedpforp$85,000,pofferedpforpsalepatp$90,000,pandpthepbuyerppaysp$80,000pcashpforpit,pthepb
uyerpwouldprecordpthepbuildingpatp$85,000.
True False



22. Generallypacceptedpaccountingpprinciplespregulatephowpandpwhatpfinancialpinformationpispreportedpbyp
businesses.
True False



23. ThepaccountingpequationpcanpbepexpressedpaspAssetsp-
pLiabilitiesp=pOwner'spEquity.pTrue False



24. Theprightsporpclaimsptopthepassetspofpapbusinesspmaypbepsubdividedpintoprightspofpcreditorspandprightspofpo
wners.
True False



25. Thepowner’sprightsptopthepassetsprankpaheadpofpthepcreditors'prightsptopthepassets.p
True False



26. Ifpthepliabilitiespowedpbypapbusinessptotalp$300,000pandpownerspequitypispequalptop$300,000,pthenpthepassetspal
soptotalp$300,000.
True False