Test Bank for Fundamental Accounting Principles 24th Edition by John J. Wild |ISBN: 9781259916960| Guide A+

TEST BANK
Fundamental Accounting Principles

John J. Wild

24th Edition
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,Table of Contents

Part 1: Accounting in Business
1. Accounting in Business
2. Analyzing and Recording Transactions
3. Adjusting Accounts and Preparing Financial Statements
4. Completing the Accounting Cycle and Classifying Accounts

Part 2: Accounting for Merchandising Activities
5. Accounting for Merchandising Operations
6. Inventories and Cost of Sales

Part 3: Internal Control and Cash
7. Internal Control and Cash
8. Receivables

Part 4: Long-Term Assets
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9. Plant Assets, Natural Resources, and Intangibles
10. Current Liabilities and Payroll Accounting
11. Accounting for Partnerships

Part 5: Corporations and Investments
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12. Corporate Reporting and Analysis
13. Accounting for Corporations: Organization and Capital Stock Transactions
14. Accounting for Corporations: Dividends, Retained Earnings, and Income Reporting
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15. Long-Term Financing: Bonds and Notes
16. Investments
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Part 6: Managerial and Analytical Accounting
17. Statement of Cash Flows
18. Financial Statement Analysis
19. Managerial Accounting Concepts and Principles
20. Job Order Costing
21. Process Costing
22. Cost-Volume-Profit Analysis
23. Master Budgets and Planning
24. Flexible Budgets and Standard Costs
25. Performance Evaluation and Decentralization
26. Relevant Costs for Managerial Decisions
27. Capital Budgeting and Long-Term Decisions

Appendices
A. Financial Statement Information
B. Time Value of Money Tables
C. Summary of Accounting Principles
D. Glossary
E. Index

,Fundamental Accounting Principles, 24e (Wild)
Chapter 1 Accounting in Business

1) Accounting is an information and measurement system that identifies, records, and
communicates an organization's business activities.

Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually
or electronically. This is just one part of accounting.
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Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
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AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making
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3) An accounting system captures relevant data about transactions and then classifies, records,
and reports data.
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Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

4) Financial accounting is the area of accounting aimed at serving external users by providing
them with general-purpose financial statements.

Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

, 5) Internal users of accounting information do not directly run the organization and have limited
access to its accounting information.

Answer: FALSE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

6) Auditors verify the effectiveness of internal controls.

Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
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Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

7) External auditors examine financial statements to verify that they are prepared according to
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generally accepted accounting principles.

Answer: TRUE
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Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
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Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making

8) External users include lenders, shareholders, customers, and regulators.

Answer: TRUE
Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Critical Thinking; FN Decision Making