TEST BANK FOR Financial Accounting 15th Edition by Carl S. Warren, James M. Reeve & Jonathan Duchac , ISBN: 9781337272124 |All Chapters Verified| Guide A+

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TEST BANK
Financial Accounting
Carl S. Warren, James M. Reeve, Jonathan Duchac

15th Edition
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Chapter 1
All Chapters Complete (Questions & Answers with Rationales)

True / False

1. A merchandising business buys products from other businesses to sell to customers.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms
ACCT.AICPA.BB.01 - Industry
ACCT.AICPA.FN.03 - Measurement
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BUSPROG: Analytic


2. The role of accounting is to provide many different users with financial information to make economic
decisions.
a. True
O
b. False
ANSWER: True
DIFFICULTY: Moderate
FD
Bloom's: Remembering
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
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3. Accounting information users need reports about the economic activities and condition of businesses.
a. True
C
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.BB.01 - Industry
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
4. Managerial accounting information is used by external and internal users equally.
a. True


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b. False
ANSWER: False
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.ACBSP.APC.25 - Managerial Characteristics/Terminology
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
5. Senior executives cannot be criminally prosecuted for the wrongdoings they commit on behalf of the
companies where they work.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
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Bloom's: Understanding
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.BB.03 - Legal
ACCT.AICPA.FN.03 - Measurement
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BUSPROG: Ethics


6. Financial accounting provides information to all users, while the main focus for managerial accounting
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is to provide information to the management.
a. True
b. False
ANSWER: True
DIFFICULTY: Moderate
O
Bloom's: Remembering
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
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ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic


7. Proper ethical conduct implies that you only consider what's in your best interest.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.AICPA.BB.03 - Legal

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ACCT.AICPA.FN.03 - Measurement
BUSPROG: Ethics



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