TEST BANK for Financial Accounting 13th Edition by C William Thomas and Wendy M. Tietz Verified Chapter's 1 - 12 | Complete

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) The accounting process begins and ends with people making decisions.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement

, 6) Accounting vinformation vis vused vby vinvestors vand vcreditors, vbut vnot vby
vregulatory vbodies.vAnswer: v FALSE
Explanation: v It vis vused vby vindividuals, vinvestors, vcreditors, vnonprofits, vand vregulatory vbodies.
Diff: v1
LO: v 1-1
AACSB: v Reflective vThinking
AICPA vBus vPersp: v Industry vSector, vLegal/Regulatory
vAICPA vFunctional: v Measurement, vReporting


7) Since vHabitat vfor vHumanity vis vnot vconcerned vabout vmaking va vprofit, vthe ventity vdoes
vnot vneed vto vusevaccounting vinformation.
Answer: v FALSE
Diff: v1
LO: v 1-1
AACSB: v Reflective vThinking
AICPA vBus vPersp: v Industry vSector, vLegal/Regulatory
vAICPA vFunctional: v Measurement, vReporting


8) The vbusiness vrecords vof va vsole vproprietorship vshould vinclude vthe vproprietor's
vpersonal vfinances.vAnswer: v FALSE
Diff: v1
LO: v 1-1
AACSB: v Reflective vThinking
AICPA vBus vPersp:
v Legal/RegulatoryvAICPA
vFunctional: v Measurement


9) A vpartnership vis va vtaxpaying
ventity.vAnswer: v FALSE
Diff: v1
LO: v 1-1
AACSB: v Reflective vThinking
AICPA vBus vPersp:
v Legal/RegulatoryvAICPA
vFunctional: v Measurement


10) Stockholders vhave vno vpersonal vobligation vfor vthe vcorporation's
vdebts.vAnswer: v TRUE
Diff: v1
LO: v 1-1
AACSB: v Reflective vThinking
AICPA vBus vPersp:
v Legal/RegulatoryvAICPA
vFunctional: v Measurement




11) Accounting:
A) measures vbusiness vactivities.
B) processes vdata vinto vreports vand vcommunicates vthe vdata vto vdecision vmakers.
C) is voften vcalled vthe vlanguage vof vbusiness.
D) is vall vof vthe