Financial Accounting Fundamentals, 8th
Edition
Complete Test Bank | Financial Accounting
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Trustedscholar
, Test Bank For
Financial Accounting Fundamentals, 8th Edition By John Wild
Chapter 1-13 Answers are at the End of Each Chapter
Chapter 01:
Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Accounting is an information and measurement system that identifies, records, and
N us
communicates an organization's business activities.
⊚ true
⊚ false
U
2) Accounting includes the analysis and interpretation of information.
Tr
⊚ true
R ted
⊚ false
SE s
3) Financial accounting focuses on the needs of external users, who get accounting information
from general-purpose financial statements.
⊚ true
⊚ false
4) Internal users of accounting information do not directly manage the organization and have
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limited access to its accounting information.
⊚ true
⊚ false
O o
5) Auditors verify the effectiveness of internal controls.
⊚ true
C la
⊚ false
6) External auditors examine financial statements to verify that they are prepared according to
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generally accepted accounting principles.
⊚ true
⊚ false
7) External users include lenders, shareholders, customers, and regulators.
⊚ true
⊚ false
r
Trustedscholar
, 8) Internal users include lenders, shareholders, brokers and nonexecutive employees.
⊚ true
⊚ false
9) Opportunities in accounting include auditing, consulting, market research, and tax planning.
⊚ true
⊚ false
10) The fraud triangle shows that three factors that push a person to commit fraud are
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opportunity, pressure, and rationalization.
⊚ true
⊚ false
U
11) Internal controls are procedures to protect assets, ensure reliable accounting, promote
efficiency, and uphold company policies.
Tr
R ted
⊚ true
⊚ false
SE s
12) A partnership is a business owned by two or more people.
⊚ true
⊚ false
13) Owners of a corporation are called shareholders or stockholders.
⊚ true
D ch
⊚ false
O o
14) In a partnership, the owners are called stockholders.
⊚ true
⊚ false
C la
15) The balance sheet shows a company's net income or loss over a period of time.
⊚ true
⊚ false
S
16) The Financial Accounting Standards Board (FASB) is given the task of setting generally
accepted accounting principles (GAAP) from the Securities and Exchange Commission.
⊚ true
⊚ false
r
Trustedscholar
, 17) The business entity assumption means that accounting information presumes that the
business will continue operating instead of being closed or sold.
⊚ true
⊚ false
18) GAAP wants information to have relevance and faithful representation.
⊚ true
⊚ false
N us
19) The business entity assumption means that a business is accounted for separately from other
business entities and its owner(s).
⊚ true
U
⊚ false
20) Revenues should not be recognized in the accounting records when earned, but rather when
Tr
R ted
cash is received.
⊚ true
⊚ false
SE s
21) Specific accounting principles are basic assumptions, concepts, and guidelines for preparing
financial statements and arise out of long-used accounting practice.
⊚ true
⊚ false
D ch
22) A sole proprietorship is a business with multiple owners.
⊚ true
O o
⊚ false
23) Unlimited liability and separate taxation of the business are advantages of a sole
proprietorship.
C la
⊚ true
⊚ false
S
24) Objectives, qualitative characteristics, elements, and recognition and measurement are
components of the FASB conceptual framework.
⊚ true
⊚ false
r
Trustedscholar
Edition
Complete Test Bank | Financial Accounting
Tr
us
te
ds
ch
ol
ar
Trustedscholar
, Test Bank For
Financial Accounting Fundamentals, 8th Edition By John Wild
Chapter 1-13 Answers are at the End of Each Chapter
Chapter 01:
Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Accounting is an information and measurement system that identifies, records, and
N us
communicates an organization's business activities.
⊚ true
⊚ false
U
2) Accounting includes the analysis and interpretation of information.
Tr
⊚ true
R ted
⊚ false
SE s
3) Financial accounting focuses on the needs of external users, who get accounting information
from general-purpose financial statements.
⊚ true
⊚ false
4) Internal users of accounting information do not directly manage the organization and have
D ch
limited access to its accounting information.
⊚ true
⊚ false
O o
5) Auditors verify the effectiveness of internal controls.
⊚ true
C la
⊚ false
6) External auditors examine financial statements to verify that they are prepared according to
S
generally accepted accounting principles.
⊚ true
⊚ false
7) External users include lenders, shareholders, customers, and regulators.
⊚ true
⊚ false
r
Trustedscholar
, 8) Internal users include lenders, shareholders, brokers and nonexecutive employees.
⊚ true
⊚ false
9) Opportunities in accounting include auditing, consulting, market research, and tax planning.
⊚ true
⊚ false
10) The fraud triangle shows that three factors that push a person to commit fraud are
N us
opportunity, pressure, and rationalization.
⊚ true
⊚ false
U
11) Internal controls are procedures to protect assets, ensure reliable accounting, promote
efficiency, and uphold company policies.
Tr
R ted
⊚ true
⊚ false
SE s
12) A partnership is a business owned by two or more people.
⊚ true
⊚ false
13) Owners of a corporation are called shareholders or stockholders.
⊚ true
D ch
⊚ false
O o
14) In a partnership, the owners are called stockholders.
⊚ true
⊚ false
C la
15) The balance sheet shows a company's net income or loss over a period of time.
⊚ true
⊚ false
S
16) The Financial Accounting Standards Board (FASB) is given the task of setting generally
accepted accounting principles (GAAP) from the Securities and Exchange Commission.
⊚ true
⊚ false
r
Trustedscholar
, 17) The business entity assumption means that accounting information presumes that the
business will continue operating instead of being closed or sold.
⊚ true
⊚ false
18) GAAP wants information to have relevance and faithful representation.
⊚ true
⊚ false
N us
19) The business entity assumption means that a business is accounted for separately from other
business entities and its owner(s).
⊚ true
U
⊚ false
20) Revenues should not be recognized in the accounting records when earned, but rather when
Tr
R ted
cash is received.
⊚ true
⊚ false
SE s
21) Specific accounting principles are basic assumptions, concepts, and guidelines for preparing
financial statements and arise out of long-used accounting practice.
⊚ true
⊚ false
D ch
22) A sole proprietorship is a business with multiple owners.
⊚ true
O o
⊚ false
23) Unlimited liability and separate taxation of the business are advantages of a sole
proprietorship.
C la
⊚ true
⊚ false
S
24) Objectives, qualitative characteristics, elements, and recognition and measurement are
components of the FASB conceptual framework.
⊚ true
⊚ false
r
Trustedscholar
