Test Bank
Financial Accounting Fundamentals
By John Wild,
8th edition
,Table of contents
Chapter 1: accounting in business
Chapter 2: accounting for business transactions chapter 3:
adjusting accounts for financial statements chapter 4:
accounting for merchandising operations chapter 5:
inventories and cost of sales
Chapter 6: cash, fraud, and internal control
chapter 7: accounting for receivables chapter 8:
accounting for long-term assets chapter 9:
accounting for current liabilities
Chapter 10: accounting for long-term liabilities
Chapter 11: corporate reporting and analysis
chapter 12: reporting cash flows
Chapter 13: analysis of financial statements
,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 communicates an organization's business activities.
⊚ true
⊚ false
2) Accounting includes the analysis and interpretation of information.
⊚ true
⊚ false
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 limited access to its accounting information.
⊚ true
⊚ false
5) Auditors verify the effectiveness of internal controls.
⊚ true
⊚ false
6) External auditors examine financial statements to verify that they are prepared
according to generally accepted accounting principles.
⊚ true
⊚ false
7) External users include lenders, shareholders, customers, and regulators.
⊚ true
⊚ false
, 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 opportunity, pressure, and rationalization.
⊚ true
⊚ false
11) Internal controls are procedures to protect assets, ensure reliable accounting,
promote efficiency, and uphold company policies.
⊚ true
⊚ false
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
⊚ false
14) In a partnership, the owners are called stockholders.
⊚ true
⊚ false
15) The balance sheet shows a company's net income or loss over a period of time.
⊚ true
⊚ false
⊚ true
⊚ false
Financial Accounting Fundamentals
By John Wild,
8th edition
,Table of contents
Chapter 1: accounting in business
Chapter 2: accounting for business transactions chapter 3:
adjusting accounts for financial statements chapter 4:
accounting for merchandising operations chapter 5:
inventories and cost of sales
Chapter 6: cash, fraud, and internal control
chapter 7: accounting for receivables chapter 8:
accounting for long-term assets chapter 9:
accounting for current liabilities
Chapter 10: accounting for long-term liabilities
Chapter 11: corporate reporting and analysis
chapter 12: reporting cash flows
Chapter 13: analysis of financial statements
,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 communicates an organization's business activities.
⊚ true
⊚ false
2) Accounting includes the analysis and interpretation of information.
⊚ true
⊚ false
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 limited access to its accounting information.
⊚ true
⊚ false
5) Auditors verify the effectiveness of internal controls.
⊚ true
⊚ false
6) External auditors examine financial statements to verify that they are prepared
according to generally accepted accounting principles.
⊚ true
⊚ false
7) External users include lenders, shareholders, customers, and regulators.
⊚ true
⊚ false
, 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 opportunity, pressure, and rationalization.
⊚ true
⊚ false
11) Internal controls are procedures to protect assets, ensure reliable accounting,
promote efficiency, and uphold company policies.
⊚ true
⊚ false
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
⊚ false
14) In a partnership, the owners are called stockholders.
⊚ true
⊚ false
15) The balance sheet shows a company's net income or loss over a period of time.
⊚ true
⊚ false
⊚ true
⊚ false
