Test Bank For Financial Accounting 16th Edition by Carl S. Warren, Christine Jonick, Jennifer Schneider||ISBN NO:978-1337913102||All Chapters||Complete Guide A+

TEST BANK FOR FINANCIAL
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ACCOUNTING, 16TH EDITION, CARL
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WARREN, CHRISTINE JONICK,
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JENNIFER SCHNEIDER
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SCHOLARVAULT

,True / False

1. A merchandising business buys products from other businesses to sell to customers.
a. True
b. False
ANSWER: True

2. The role of accounting is to provide many different users with financial information to make economic decisions.
a. True
b. False
ANSWER: True

3. Accounting information users need reports about the economic activities and condition of businesses.
a. True
b. False
ANSWER: True

4. Managerial accounting information is used by external and internal users equally.
a. True
b. False
ANSWER: False

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

6. Financial accounting provides information to all users, while the main focus for managerial accounting is to provide
information to the management.
a. True
b. False
ANSWER: True



SCHOLARVAULT

,7. Proper #fgethical #fgconduct #fgimplies #fgthat #fgyou #fgonly #fgconsider #fgwhat's #fgin #fgyour #fgbest #fginterest.
a. True
b. False
ANSWER: False

8. Some #fgof #fgthe #fgmajor #fgfraudulent #fgacts #fgcommitted #fgby #fgsenior #fgexecutives #fgstarted #fgas #fgwhat #fgthey #fgconsidered #fgto
#fgbe #fgsmall #fgethical #fglapses #fgthat #fggrew #fgout #fgof #fgcontrol.

a. True
b. False
ANSWER: True

9. A #fgbusiness #fgis #fgan #fgorganization #fgin #fgwhich #fgbasic #fgresources #fgor #fginputs, #fgsuch #fgas #fgmaterials #fgand #fglabor,
#fgare #fgassembled #fgand #fgprocessed #fgto #fgprovide #fgoutputs #fgin #fgthe #fgform #fgof #fggoods #fgor #fgservices #fgto #fgcustomers.

a. True
b. False
ANSWER: True

10. Two #fgfactors #fgthat #fgtypically #fglead #fgto #fgethical #fgviolations #fgare #fgrelevance #fgand #fgtimeliness #fgof #fgaccounting
#fginformation.

a. True
b. False
ANSWER: False

11. Financial #fgaccounting #fgreports #fgare #fgrelevant #fgonly #fgto #fgusers #fgwithin #fgthe #fgbusiness.
a. True
b. False
ANSWER: False

12. The #fgSarbanes-Oxley #fgAct #fgestablished #fgstandards #fgfor #fgcorporate #fgresponsibility #fgand #fgdisclosure.
a. True
b. False
ANSWER: True

13. The #fgmain #fgobjective #fgfor #fgall #fgbusiness #fgis #fgto #fgmaximize #fgunrealized #fgprofits.
a. True
b. False
ANSWER: False

14. The #fgprimary #fgrole #fgof #fgaccounting #fgis #fgto #fgdetermine #fgthe #fgamount #fgof #fgtaxes #fga #fgbusiness #fgwill #fgbe
#fgrequired #fgto #fgpay #fgto #fgtaxing #fgentities.

a. True
b. False
ANSWER: False

15. The #fgbasic #fgdifference #fgbetween #fgmanufacturing #fgand #fgmerchandising #fgcompanies #fgis #fgthe #fgcompletion #fglevel #fgof
#fgthe #fgproducts #fgthey #fgpurchase #fgfor #fgresale #fgto #fgcustomers.

a. True
b. False
ANSWER: True


SCHOLARVAULT

, 16. An #fgexample #fgof #fgan #fgexternal #fguser #fgof #fgaccounting #fginformation #fgis #fgthe #fgfederal #fggovernment.
a. True
b. False
ANSWER: True

17. Proprietorships #fgare #fgowned #fgby #fgone #fgowner #fgand #fgprovide #fgonly #fgservices #fgto #fgtheir #fgcustomers.
a. True
b. False
ANSWER: False

18. About #fg90% #fgof #fgthe #fgbusinesses #fgin #fgthe #fgUnited #fgStates #fgare #fgorganized #fgas #fgcorporations.
a. True
b. False
ANSWER: False

19. The #fgFinancial #fgAccounting #fgStandards #fgBoard #fg(FASB) #fgis #fgthe #fgauthoritative #fgbody #fgthat #fghas #fgprimary
#fgresponsibility #fgfor #fgdeveloping #fgaccounting #fgprinciples.

a. True
b. False
ANSWER: True

20. The #fgcost #fgconcept #fgis #fgthe #fgbasis #fgfor #fgentering #fgthe #fgpurchase #fgprice #fginto #fgthe #fgaccounting #fgrecords.
a. True
b. False
ANSWER: True

21. The #fgunit #fgof #fgmeasurement #fgconcept #fgrequires #fgthat #fgeconomic #fgdata #fgbe #fgrecorded #fgin #fgdollars.
a. True
b. False
ANSWER: True

22. If #fga #fgbuilding #fgis #fgappraised #fgfor #fg$85,000, #fgit #fgis #fgoffered #fgfor #fgsale #fgat #fg$90,000, #fgand #fgthe #fgbuyer #fgpays
#fg$80,000 #fgcash #fgfor #fgit, #fgthe #fgbuyer #fgwould #fgrecord #fgthe #fgbuilding #fgat #fg$85,000.

a. True
b. False
ANSWER: False

23. The #fgfinancial #fgstatements #fgof #fga #fgproprietorship #fgshould #fginclude #fgthe #fgowner's #fgpersonal #fgassets #fgand #fgliabilities.
a. True
b. False
ANSWER: False

24. No #fgsignificant #fgdifferences #fgexist #fgbetween #fgthe #fgaccounting #fgstandards #fgissued #fgby #fgthe #fgFASB #fgand #fgthe #fgIASB.
a. True
b. False
ANSWER: False

25. Generally #fgaccepted #fgaccounting #fgprinciples #fgregulate #fghow #fgand #fgwhat #fgfinancial #fginformation #fgis #fgreported #fgby
#fgbusinesses.




SCHOLARVAULT