TEST BANK FOR FUNDAMENTALS OF FINANCIAL ACCOUNTING 7TH
EDITION BY FRED PHILLIPS || SHANA CLOR-PROELL ||, ROBERT
LIBBY ||, PATRICIA LIBBY LATEST UPDATE 2025 A+
1
,TABLE OF CONTENTS
Chapter 1: business decisions and financial accounting
chapter 2: the balance sheet
chapter 3: the income statement
chapter 4: adjustments, financial statements, and financial results
chapter 5: fraud, internal control, and cash
chapter 6: merchandising operations and the multistep income statement
chapter 7: inventory and cost of goods sold
chapter 8: receivables, bad debt expense, and interest revenue
chapter 9: long-lived tangible and intangible assets
chapter 10: liabilities
chapter 11: stockholders' equity
chapter 12: statement cash flows
chapter 13: measuring and evaluating financial performance
appendix a: excerpts from the fiscal 2016 annual report of the home depot, inc.
Appendix b: excerpts from the fiscal 2016 annual report of lowe's companies,
inc.
Appendix c: present and future value concepts
appendix d: investments in other corporations
2
,ANSWERS ARE LOCATED AT THE END OF THIS DOCUMENT
JUST TYPE ANSWER KEY ON THE NAVIGATION PANE
short answer. Write the word or phrase that best completes each statement or
answers the question.
1)
choose the appropriate letter to match the characteristics with the type of company. A
given characteristic may match more than one type of company.
Characteristic
1. ________ issues shares of stock that are traded on a stock exchange such as the nyse
2. ________ the owner(s) of the business are personally liable for the debts of the company
3. ________ shares of stock must be purchased directly from current owners and not sold on
an exchange
4. ________ can raise more financial capital by selling stock to the greatest number of
investors
5. ________ the easiest form of business to start
6. ________ the business ceases to exist upon the departure of one of the owners
7. ________ the owner(s) pay taxes on the profits of the business
type of company
a. Partnership
b. Publicly traded corporation
c. Privately traded corporation
d. Sole proprietorship
question details
aacsb : analytical thinking
aicpa : fn reporting
difficulty : 2 medium
bloom's : analyze
accessibility : keyboard navigation
type : static
gradable : manual
accessibility : screen reader compatible
bloom's : understand
topic : organizational forms
learning objective : 01-01 describe various organizational forms and business decision makers.
Aicpa : bb legal
source : exclude learnsmart
3
, 2
2)
match the business activity to the appropriate category.
The purchase of a new line of assembly equipment
company payment of a dividend
the purchase of office supplies
the purchase of an online advertising slot time by the company
the building of a new factory facility
company repayment of the principal amount of a bank loan
a) financing activity
b) operating activity
c) investing activity
question details
aacsb : analytical thinking
aicpa : fn reporting
difficulty : 2 medium
learning objective : 01-02 describe the purpose, structure, and content of the four basic financial s
topic : financial statements
aicpa : bb resource management
accessibility : keyboard navigation
type : static
gradable : manual
accessibility : screen reader compatible
4
EDITION BY FRED PHILLIPS || SHANA CLOR-PROELL ||, ROBERT
LIBBY ||, PATRICIA LIBBY LATEST UPDATE 2025 A+
1
,TABLE OF CONTENTS
Chapter 1: business decisions and financial accounting
chapter 2: the balance sheet
chapter 3: the income statement
chapter 4: adjustments, financial statements, and financial results
chapter 5: fraud, internal control, and cash
chapter 6: merchandising operations and the multistep income statement
chapter 7: inventory and cost of goods sold
chapter 8: receivables, bad debt expense, and interest revenue
chapter 9: long-lived tangible and intangible assets
chapter 10: liabilities
chapter 11: stockholders' equity
chapter 12: statement cash flows
chapter 13: measuring and evaluating financial performance
appendix a: excerpts from the fiscal 2016 annual report of the home depot, inc.
Appendix b: excerpts from the fiscal 2016 annual report of lowe's companies,
inc.
Appendix c: present and future value concepts
appendix d: investments in other corporations
2
,ANSWERS ARE LOCATED AT THE END OF THIS DOCUMENT
JUST TYPE ANSWER KEY ON THE NAVIGATION PANE
short answer. Write the word or phrase that best completes each statement or
answers the question.
1)
choose the appropriate letter to match the characteristics with the type of company. A
given characteristic may match more than one type of company.
Characteristic
1. ________ issues shares of stock that are traded on a stock exchange such as the nyse
2. ________ the owner(s) of the business are personally liable for the debts of the company
3. ________ shares of stock must be purchased directly from current owners and not sold on
an exchange
4. ________ can raise more financial capital by selling stock to the greatest number of
investors
5. ________ the easiest form of business to start
6. ________ the business ceases to exist upon the departure of one of the owners
7. ________ the owner(s) pay taxes on the profits of the business
type of company
a. Partnership
b. Publicly traded corporation
c. Privately traded corporation
d. Sole proprietorship
question details
aacsb : analytical thinking
aicpa : fn reporting
difficulty : 2 medium
bloom's : analyze
accessibility : keyboard navigation
type : static
gradable : manual
accessibility : screen reader compatible
bloom's : understand
topic : organizational forms
learning objective : 01-01 describe various organizational forms and business decision makers.
Aicpa : bb legal
source : exclude learnsmart
3
, 2
2)
match the business activity to the appropriate category.
The purchase of a new line of assembly equipment
company payment of a dividend
the purchase of office supplies
the purchase of an online advertising slot time by the company
the building of a new factory facility
company repayment of the principal amount of a bank loan
a) financing activity
b) operating activity
c) investing activity
question details
aacsb : analytical thinking
aicpa : fn reporting
difficulty : 2 medium
learning objective : 01-02 describe the purpose, structure, and content of the four basic financial s
topic : financial statements
aicpa : bb resource management
accessibility : keyboard navigation
type : static
gradable : manual
accessibility : screen reader compatible
4
