Test Bank for Horngren’s Accounting: The Financial Chapters 14th Edition | Miller-Nobles & Mattison

TEST BANK FOR
Horngren's Accounting, The Financial
Chapters, 14th edition Nobles
Chapter 1-17




1

,Horngren's Accounting: The Financial Chapters, 14e
(Miller-Nobles)
Chapter F:1 Accounting and the Business
Environment

Learning Objective F:1-1
Accounting is the information system that measures
1)

business activities, processes the information into
reports, and communicates the results to decision
makers.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB:
Application of
knowledge AICPA
Functional:
Measurement PE
Question Type:
Concept
H2 : Why is Accounting Important? (H1)

2)The knowledge of accounting is rarely used to help
make business and personal financial decisions.
Answer: FALSE
Explanation: The knowledge of accounting is used daily
to assist in making decisions for both businesses and
2

,personal items.
Diff: 1
LO: F:1-1
AACSB:
Application of
knowledge AICPA
Functional:
Measurement PE
Question Type:
Concept
H2 : Why is Accounting Important? (H1)

3)Accounting starts with economic activities that
accountants review and evaluate using critical thinking
and judgment to create useful information that helps
individuals make good decisions.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB:
Application of
knowledge AICPA
Functional:
Measurement PE
Question Type:
Concept
H2 : Why is Accounting Important? (H1)

4)Accounting is referred to as the language of business
because it is the method of communicating business
information to decision makers.
3

, Answer: TRUE
Diff: 1
LO: F:1-1
AACSB:
Application of
knowledge AICPA
Functional:
Measurement PE
Question Type:
Concept
H2 : Why is Accounting Important? (H1)




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