Test Bank for Fundamental Accounting Principles, 25th Edition by
John Wild and Ken Shaw, Kermit Larson Complete
TEST BANK FOR
Fundamental Accounting Principles, 25th Edition, John
WildChapter 1-26 Answers at the End of Each Chapter
Chapter 01:
Student name:
1) Which of the following is not accomplished by accounting?
A) Identifies business activities.
B) Records business activities.
C) Communicates business activities.
D) Eliminates the need for interpreting financial data.
E) Helps people make better decisions.
2) Which of the following is an external user of accounting information?
A) Purchasing manager.
B) Human resource manager.
C) Lender.
D) Chief executive officer (CEO).
E) Marketing manager.
3) The primary objective of financial accounting is to:
A) Serve the decision-making needs of internal users.
B) Provide accounting information that serves external users.
C) Monitor consumer needs, tastes, and price concerns.
D) Provide information on both the costs and benefits of looking after
products andservices.
E) Know what, when, and how much product to produce.
,4) The area of accounting aimed at serving the decision-making needs of internal users is:
A) Financial accounting.
B) Managerial accounting.
C) External auditing.
D) SEC reporting.
E) Bookkeeping.
5) Which of the following is not an external user of accounting information?
A) Shareholders.
B) Customers.
C) Purchasing managers.
D) Government regulators.
E) Creditors.
6) Which of the following is not true regarding a Certified Public Accountant?
A) Must meet education requirements.
B) Must pass an examination.
C) Must exhibit ethical character.
D) Must meet experience requirements.
E) Cannot hold any certificate other than a CPA.
7) Which of the following factors is not a component of the fraud triangle?
, A) Opportunity
B) Pressure
C) Rationalization
D) All Cof Cthe Cabove Care Ccomponents Cof Cthe Cfraud Ctriangle.
8) Which Cof Cthe Cfollowing Cis Cnot Ctrue Cregarding Cethics:
A) Ethics Care Cbeliefs Cthat Cseparate Cright Cfrom Cwrong.
B) Good Cethics Care Cgood Cbusiness.
C) Ethics Cdo Cnot Caffect Cthe Coperations Cor Coutcome Cof Ca Ccompany.
D) Accountants Cface Cethical Cchoices Cas Cthey Cprepare Cfinancial Creports.
E) Ethics Care Caccepted Cstandards Cof Cgood Cand Cbad Cbehavior.
9) A Ccorporation Cis:
A) A Cbusiness Clegally Cseparate Cfrom Cits Cowners.
B) Controlled Cby Cthe CFASB.
C) Not Cresponsible Cfor Cits Cown Cacts Cand Cown Cdebts.
D) The Csame Cas Ca Climited Cliability Cpartnership.
E) Not Csubject Cto Cdouble Ctaxation.
10) The Cgroup Cthat Csets Cinternational Cpreferred Caccounting Cpractices Cis Ccalled Cthe:
A) AICPA.
B) IASB.
C) CAP.
D) SEC.
E) FASB.
, 11) The CSecurities Cand CExchange CCommission C(SEC) Chas Cgiven Cthe Ctask Cof Csetting
CGAAP C tothe:
A) APB.
B) FASB.
C) AAA.
D) AICPA.
E) IASB.
12) The Caccounting Cconcept Cthat Crequires Cevery Cbusiness Cto Cbe Caccounted Cfor
C separately Cfromother Cbusiness Centities, Cincluding Cits Cowner Cor Cowners Cis Cknown
Cas Cthe:
A) Time-period Cassumption.
B) Business Centity Cassumption.
C) Going-concernCassumption.
D) Revenue Crecognition Cprinciple.
E) Measurement C(Cost) Cprinciple.
13) The Crule Cthat Crequires Cfinancial Cstatements Cto Cassume Cthat Cthe Cbusiness
Cwill C continueoperating Cinstead Cof Cbeing Cclosed Cor Csold Cis Cthe:
A) Going-concernCassumption.
B) Business Centity Cassumption.
C) Objectivity Cprinciple.
D) Measurement C(Cost) Cprinciple.
E) Monetary Cunit Cassumption.
14) If Ca Ccompany Cis Cconsidering Cthe Cpurchase Cof Ca Cparcel Cof Cland Cthat Cwas
Coriginally C acquired Cby Cthe Cseller Cfor C$100,000, Cis Ccurrently Coffered Cfor Csale Cat
C$180,000, Cis Cconsidered C by Cthe Cpurchaser Cas Ceasily Cbeing Cworth C$170,000, Cand Cis
Cfinally Cpurchased Cfor C$167,000, C the Cland Cshouldbe Crecorded Cin Cthe Cpurchaser’s
Cbooks Cat:
John Wild and Ken Shaw, Kermit Larson Complete
TEST BANK FOR
Fundamental Accounting Principles, 25th Edition, John
WildChapter 1-26 Answers at the End of Each Chapter
Chapter 01:
Student name:
1) Which of the following is not accomplished by accounting?
A) Identifies business activities.
B) Records business activities.
C) Communicates business activities.
D) Eliminates the need for interpreting financial data.
E) Helps people make better decisions.
2) Which of the following is an external user of accounting information?
A) Purchasing manager.
B) Human resource manager.
C) Lender.
D) Chief executive officer (CEO).
E) Marketing manager.
3) The primary objective of financial accounting is to:
A) Serve the decision-making needs of internal users.
B) Provide accounting information that serves external users.
C) Monitor consumer needs, tastes, and price concerns.
D) Provide information on both the costs and benefits of looking after
products andservices.
E) Know what, when, and how much product to produce.
,4) The area of accounting aimed at serving the decision-making needs of internal users is:
A) Financial accounting.
B) Managerial accounting.
C) External auditing.
D) SEC reporting.
E) Bookkeeping.
5) Which of the following is not an external user of accounting information?
A) Shareholders.
B) Customers.
C) Purchasing managers.
D) Government regulators.
E) Creditors.
6) Which of the following is not true regarding a Certified Public Accountant?
A) Must meet education requirements.
B) Must pass an examination.
C) Must exhibit ethical character.
D) Must meet experience requirements.
E) Cannot hold any certificate other than a CPA.
7) Which of the following factors is not a component of the fraud triangle?
, A) Opportunity
B) Pressure
C) Rationalization
D) All Cof Cthe Cabove Care Ccomponents Cof Cthe Cfraud Ctriangle.
8) Which Cof Cthe Cfollowing Cis Cnot Ctrue Cregarding Cethics:
A) Ethics Care Cbeliefs Cthat Cseparate Cright Cfrom Cwrong.
B) Good Cethics Care Cgood Cbusiness.
C) Ethics Cdo Cnot Caffect Cthe Coperations Cor Coutcome Cof Ca Ccompany.
D) Accountants Cface Cethical Cchoices Cas Cthey Cprepare Cfinancial Creports.
E) Ethics Care Caccepted Cstandards Cof Cgood Cand Cbad Cbehavior.
9) A Ccorporation Cis:
A) A Cbusiness Clegally Cseparate Cfrom Cits Cowners.
B) Controlled Cby Cthe CFASB.
C) Not Cresponsible Cfor Cits Cown Cacts Cand Cown Cdebts.
D) The Csame Cas Ca Climited Cliability Cpartnership.
E) Not Csubject Cto Cdouble Ctaxation.
10) The Cgroup Cthat Csets Cinternational Cpreferred Caccounting Cpractices Cis Ccalled Cthe:
A) AICPA.
B) IASB.
C) CAP.
D) SEC.
E) FASB.
, 11) The CSecurities Cand CExchange CCommission C(SEC) Chas Cgiven Cthe Ctask Cof Csetting
CGAAP C tothe:
A) APB.
B) FASB.
C) AAA.
D) AICPA.
E) IASB.
12) The Caccounting Cconcept Cthat Crequires Cevery Cbusiness Cto Cbe Caccounted Cfor
C separately Cfromother Cbusiness Centities, Cincluding Cits Cowner Cor Cowners Cis Cknown
Cas Cthe:
A) Time-period Cassumption.
B) Business Centity Cassumption.
C) Going-concernCassumption.
D) Revenue Crecognition Cprinciple.
E) Measurement C(Cost) Cprinciple.
13) The Crule Cthat Crequires Cfinancial Cstatements Cto Cassume Cthat Cthe Cbusiness
Cwill C continueoperating Cinstead Cof Cbeing Cclosed Cor Csold Cis Cthe:
A) Going-concernCassumption.
B) Business Centity Cassumption.
C) Objectivity Cprinciple.
D) Measurement C(Cost) Cprinciple.
E) Monetary Cunit Cassumption.
14) If Ca Ccompany Cis Cconsidering Cthe Cpurchase Cof Ca Cparcel Cof Cland Cthat Cwas
Coriginally C acquired Cby Cthe Cseller Cfor C$100,000, Cis Ccurrently Coffered Cfor Csale Cat
C$180,000, Cis Cconsidered C by Cthe Cpurchaser Cas Ceasily Cbeing Cworth C$170,000, Cand Cis
Cfinally Cpurchased Cfor C$167,000, C the Cland Cshouldbe Crecorded Cin Cthe Cpurchaser’s
Cbooks Cat:
