TEST BANK
Survey of Accounting, 7th Edition
by Edmonds & Olds Complete 16 Chapters
1
,TABLE OF CONTENTS
Chapter 1 An Introduction to Accounting
Chapter 2 Accounting for Accruals and Deferrals
Chapter 3 Accounting for Merchandising Businesses
Chapter 4 Internal Controls, Accounting for Cash, and Ethics
Chapter 5 Accounting for Receivables and Inventory Cost Flow
Chapter 6 Accounting for Long-Term Operational Assets
Chapter 7 Accounting for Liabilities
Chapter 8 Proprietorships, Partnerships, and Corporations
Chapter 9 Financial Statement Analysis
Chapter 10 An Introduction to Management Accounting
Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis
Chapter 12 Cost Accumulation, Tracing, and Allocation
Chapter 13 Relevant Information for Special Decisions
Chapter 14 Planning for Profit and Cost Control
Chapter 15 Performance Evaluation
Chapter 16 Planning for Capital Investments
2
,Chap 01 7e
Edmonds
Answers are at the end of each chapter
1) Which of the following groups has the primary responsibility for establishing
generally accepted accounting principles for business entities in the United
States?
A) Securities and Exchange Commission
B) U.S. Congress
C) International Accounting Standards Board
D) Financial Accounting Standards Board
2) The Heritage Company is a manufacturer of office furniture. Which term best
describes Heritage's role in society?
A) Business
B) Regulatory agency
C) Consumer
D) Resource owner
3) Which resource providers lend financial resources to a business with the
expectation of repayment with interest?
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Which type of accounting information is intended to satisfy the needs of external
users ofaccounting information?
A) Cost accounting
B) Managerial accounting
C) Tax accounting
D) Financial accounting
5) Which of the following is false regarding managerial accounting information?
A) It is often used by investors.
B) It is more detailed than financial accounting information.
C) It can include nonfinancial information.
D) It focuses on divisional rather than overall profitability.
3
, 6) Financial accounting standards are known collectively as GAAP. What does that
acronymstand for?
A) Generally Accepted Accounting Principles
B) Generally Applied Accounting Procedures
C) Governmentally Approved Accounting Practices
D) Generally Authorized Auditing Principles
7) International accounting standards are formulated by the IASB. What does that
acronymstand for?
A) Internationally Accepted Standards Board
B) International Accounting Standards Board
C) International Accountability Standards Bureau
D) International Accounting and Sustainability Board
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called
Wooden Wheels. Jack transferred $650,000 of the cash that he borrowed to the
store on the first day of the year. How many reporting entities exist in this
scenario?
A) One reporting entity
B) Two reporting entities
C) Three reporting entities
D) Four reporting entities
4
Survey of Accounting, 7th Edition
by Edmonds & Olds Complete 16 Chapters
1
,TABLE OF CONTENTS
Chapter 1 An Introduction to Accounting
Chapter 2 Accounting for Accruals and Deferrals
Chapter 3 Accounting for Merchandising Businesses
Chapter 4 Internal Controls, Accounting for Cash, and Ethics
Chapter 5 Accounting for Receivables and Inventory Cost Flow
Chapter 6 Accounting for Long-Term Operational Assets
Chapter 7 Accounting for Liabilities
Chapter 8 Proprietorships, Partnerships, and Corporations
Chapter 9 Financial Statement Analysis
Chapter 10 An Introduction to Management Accounting
Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis
Chapter 12 Cost Accumulation, Tracing, and Allocation
Chapter 13 Relevant Information for Special Decisions
Chapter 14 Planning for Profit and Cost Control
Chapter 15 Performance Evaluation
Chapter 16 Planning for Capital Investments
2
,Chap 01 7e
Edmonds
Answers are at the end of each chapter
1) Which of the following groups has the primary responsibility for establishing
generally accepted accounting principles for business entities in the United
States?
A) Securities and Exchange Commission
B) U.S. Congress
C) International Accounting Standards Board
D) Financial Accounting Standards Board
2) The Heritage Company is a manufacturer of office furniture. Which term best
describes Heritage's role in society?
A) Business
B) Regulatory agency
C) Consumer
D) Resource owner
3) Which resource providers lend financial resources to a business with the
expectation of repayment with interest?
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Which type of accounting information is intended to satisfy the needs of external
users ofaccounting information?
A) Cost accounting
B) Managerial accounting
C) Tax accounting
D) Financial accounting
5) Which of the following is false regarding managerial accounting information?
A) It is often used by investors.
B) It is more detailed than financial accounting information.
C) It can include nonfinancial information.
D) It focuses on divisional rather than overall profitability.
3
, 6) Financial accounting standards are known collectively as GAAP. What does that
acronymstand for?
A) Generally Accepted Accounting Principles
B) Generally Applied Accounting Procedures
C) Governmentally Approved Accounting Practices
D) Generally Authorized Auditing Principles
7) International accounting standards are formulated by the IASB. What does that
acronymstand for?
A) Internationally Accepted Standards Board
B) International Accounting Standards Board
C) International Accountability Standards Bureau
D) International Accounting and Sustainability Board
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called
Wooden Wheels. Jack transferred $650,000 of the cash that he borrowed to the
store on the first day of the year. How many reporting entities exist in this
scenario?
A) One reporting entity
B) Two reporting entities
C) Three reporting entities
D) Four reporting entities
4
