TEST BANK for Financial Accounting for Managers (ISE) by Wayne M. Thomas, David Spiceland, and Mark W. Nelson |all chapters covered|

TEST BANK
Financial Accounting for Managers
WAYNE M. THOMAS, DAVID SPICELAND, MARK W. NELSON
ISE

, Financial Accounting for Managers 1st Edition By Wayne Thomas and David
Spiceland and Mark Nelson


FULL TEST BANK
Financial Accounting for Managers 1st Edition By Wayne Thomas and David
Spiceland and Mark Nelson



Answers are at the end of each chapter

Chapter 1 Version 1
Student name:
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Accounting is a system of maintaining records of a company's operations
and communicating that information to decision makers.
⊚ true
⊚ false



2) Accounting information is used by investors to decide whether to invest in a
company's stock.
⊚ true
⊚ false



3) Accounting information is used by creditors to decide whether to invest in a
company's stock.
⊚ true
⊚ false



4) The primary functions of financial accounting are to measure business activities of
a company and to communicate those measurements to internal parties for decision-
making purposes.
⊚ true
⊚ false

,5) Financing activities include transactions the company has with investors and creditors.
⊚ true
⊚ false



6) Investing activities include transactions involving the purchase and sale of resources
that are expected to benefit the company for several years.
⊚ true
⊚ false



7) Operating activities include transactions that relate to the primary operations of
the company, such as providing products and services to customers and the associated
costs.
⊚ true
⊚ false



8) A corporation is an entity that is legally separate from its owners.
⊚ true
⊚ false



9) Cash, inventory for sale to customers, supplies, and buildings are examples of liabilities.
⊚ true
⊚ false



10) Amounts owed to suppliers, employees, the government in the form of taxes, and
utility companies are examples of liabilities.
⊚ true
⊚ false



11) If total assets of a company equal $12,000 and total stockholders' equity equals
$4,000, then total liabilities equal $8,000.
⊚ true
⊚ false



Version 1 2

, 12) If total liabilities of a company equal $16,000 and total stockholders' equity equals
$9,000, then total assets equal $7,000.
⊚ true
⊚ false



13) The accounting equation shows that a company's total resources equal creditors'
and owners' claims to those resources.
⊚ true
⊚ false



14) The costs related to rent, utilities, and salaries in the current reporting period
are examples of liabilities.
⊚ true
⊚ false



15) The difference between revenues and expenses is referred to as net income or net loss.
⊚ true
⊚ false



16) If a company reports revenues of $17,000 and expenses of $12,000, then net
income equals $5,000.
⊚ true
⊚ false



17) Expenses include a company’s costs of providing products and services to customers,
as well as cash payments to its stockholders.
⊚ true
⊚ false



18) Dividends represent a return of the company's profits to its owners, the stockholders.
⊚ true
⊚ false



Version 1 3