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FinancialAccountingFundamentals,8thEdition
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ByJohnWild,Chapter1-13
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,Chapter1:AccountinginBusiness
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Chapter2:AccountingforBusinessTransactions Chapter3:AdjustingAccountsfor
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FinancialStatements Chapter4:AccountingforMerchandisingOperations Chapter5:
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InventoriesandCostofSales
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Chapter6:Cash,Fraud,andInternalControl Chapter7:Accountingfor
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Receivables Chapter8:AccountingforLong-TermAssets Chapter9:
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AccountingforCurrentLiabilities
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Chapter10:AccountingforLong-TermLiabilities Chapter11:CorporateReporting
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andAnalysis Chapter12:ReportingCashFlows
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Chapter13:AnalysisofFinancialStatements
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, Answers are at the End of Each Chapter
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Chapter1:AccountinginBusiness
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Student name:
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TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Accountingisan informationand measurement system that identifies,records,
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andcommunicatesanorganization'sbusinessactivities.
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2) Accountingincludesthe analysisandinterpretation ofinformation.
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3) Financialaccountingfocuses onthe needs of external users, whoget accounting
informationfrom general-purpose financial statements.
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4) Internalusers ofaccounting information do not directly manage the organizationand
havelimitedaccesstoitsaccountinginformation.
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5) Auditorsverifythe effectiveness ofinternal controls.
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6) Externalauditors examinefinancialstatements to verifythat theyare preparedaccording
togenerallyacceptedaccountingprinciples.
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7) Externalusersincludelenders,shareholders,customers,andregulators.
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, 8) Internalusersincludelenders,shareholders,brokersandnonexecutiveemployees.
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9) Opportunitiesinaccountingincludeauditing, consulting, marketresearch, andtax planning.
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10) Thefraud triangleshows that three factors that push a person to commit fraud
areopportunity,pressure,andrationalization.
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11) Internalcontrols areprocedures toprotectassets,ensurereliableaccounting,
promoteefficiency,andupholdcompanypolicies.
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12) Apartnership is a business owned by two or more people.
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13) Ownersofa corporation arecalledshareholders orstockholders.
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14) Ina partnership,the ownersare called stockholders.
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15) The balancesheet shows a company's net income or loss over a period of time.
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16) TheFinancialAccounting Standards Board (FASB) is given the task of setting generally
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acceptedaccountingprinciples (GAAP)from theSecuritiesandExchange Commission.
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