,
, Survey of Accounting, 7th Edition by Edmonds, Olds Test Bank
Answers Included
Chap 01 7e Edmonds
1) Whichllofllthe fo owing groups has the primary responsibility for establishing genera y ac
!! !! !! !! !! !! !! !! !! !! !! !!
cepted accounting principles for business entities in the United States?
!! !! !! !! !! !! !! !! !!
A) Securities and Exchange Commission !! !! !!
B) U.S. Congress !!
C) Internationa lAccounting Standards Board !! !! !!
D) Financia lAccounting Standards Board !! !! !!
2) The Heritage Company is a manufacturer of office furniture. Which term best describes
!! !! !! !! !! !! !! !! !! !! !! !! !!
Heritage's role in society?
!! !! !!
A) Business
B) Regulatory agency !!
C) Consumer
D) Resource owner !!
3) Which resource providers lend financia lresources to a business with the expectation of r
!! !! !! !! !! !! !! !! !! !! !! !! !!
epayment with interest?
!! !!
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Which type of accounting information is intended to satisfy the needs of externa lusers of a
!! !! !! !! !! !! !! !! !! !! !! !! !! !! !!
ccounting information?
!!
A) Cost accounting !!
B) Manageria laccounting !!
C) Tax accounting !!
D) Financia laccounting !!
5) Which of the fo owing is false regarding manageria laccounting information?
!! !! !! !! !! !! !! !! !! !!
A) It is often used by investors.
!! !! !! !! !!
B) It is more detailed than financia laccounting information.
!! !! !! !! !! !! !!
C) It can include nonfinancia linformation.
!! !! !! !!
D) It focuses on divisiona lrather than overa profitability.
!! !! !! !! !! !! !!!!
1
, 6) Financia laccounting standards are known co ectively as GAAP. What does that acronym st
!! !! !! !! !! !! !! !! !! !! !! !! !!
and for?
!!
A) Genera y Accepted Accounting Principles !! !! !! !!
B) Genera y Applied Accounting Procedures !! !! !! !!
C) Governmenta y Approved Accounting Practices !! !! !! !!
D) Genera y Authorized Auditing Principles !! !! !! !!
7) Internationa laccounting standards are formulated by the IASB. What does that acronym s
!! !! !! !! !! !! !! !! !! !! !! !!
tand for? !!
A) Internationa y Accepted Standards Board !! !! !! !!
B) Internationa lAccounting Standards Board !! !! !!
C) Internationa lAccountability Standards Bureau !! !! !!
D) Internationa lAccounting and Sustainability Board !! !! !! !!
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store ca ed Wooden W
!! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !!
heels. Jack transferred $650,000 of the cash that he borrowed to the store on the first day of t
!! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !!
he year. How many reporting entities exist in this scenario?
!! !! !! !! !! !! !! !! !!
A) One reporting entity !! !!
B) Two reporting entities !! !!
C) Three reporting entities !! !!
D) Four reporting entities !! !!
2
, Survey of Accounting, 7th Edition by Edmonds, Olds Test Bank
Answers Included
Chap 01 7e Edmonds
1) Whichllofllthe fo owing groups has the primary responsibility for establishing genera y ac
!! !! !! !! !! !! !! !! !! !! !! !!
cepted accounting principles for business entities in the United States?
!! !! !! !! !! !! !! !! !!
A) Securities and Exchange Commission !! !! !!
B) U.S. Congress !!
C) Internationa lAccounting Standards Board !! !! !!
D) Financia lAccounting Standards Board !! !! !!
2) The Heritage Company is a manufacturer of office furniture. Which term best describes
!! !! !! !! !! !! !! !! !! !! !! !! !!
Heritage's role in society?
!! !! !!
A) Business
B) Regulatory agency !!
C) Consumer
D) Resource owner !!
3) Which resource providers lend financia lresources to a business with the expectation of r
!! !! !! !! !! !! !! !! !! !! !! !! !!
epayment with interest?
!! !!
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Which type of accounting information is intended to satisfy the needs of externa lusers of a
!! !! !! !! !! !! !! !! !! !! !! !! !! !! !!
ccounting information?
!!
A) Cost accounting !!
B) Manageria laccounting !!
C) Tax accounting !!
D) Financia laccounting !!
5) Which of the fo owing is false regarding manageria laccounting information?
!! !! !! !! !! !! !! !! !! !!
A) It is often used by investors.
!! !! !! !! !!
B) It is more detailed than financia laccounting information.
!! !! !! !! !! !! !!
C) It can include nonfinancia linformation.
!! !! !! !!
D) It focuses on divisiona lrather than overa profitability.
!! !! !! !! !! !! !!!!
1
, 6) Financia laccounting standards are known co ectively as GAAP. What does that acronym st
!! !! !! !! !! !! !! !! !! !! !! !! !!
and for?
!!
A) Genera y Accepted Accounting Principles !! !! !! !!
B) Genera y Applied Accounting Procedures !! !! !! !!
C) Governmenta y Approved Accounting Practices !! !! !! !!
D) Genera y Authorized Auditing Principles !! !! !! !!
7) Internationa laccounting standards are formulated by the IASB. What does that acronym s
!! !! !! !! !! !! !! !! !! !! !! !!
tand for? !!
A) Internationa y Accepted Standards Board !! !! !! !!
B) Internationa lAccounting Standards Board !! !! !!
C) Internationa lAccountability Standards Bureau !! !! !!
D) Internationa lAccounting and Sustainability Board !! !! !! !!
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store ca ed Wooden W
!! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !!
heels. Jack transferred $650,000 of the cash that he borrowed to the store on the first day of t
!! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !!
he year. How many reporting entities exist in this scenario?
!! !! !! !! !! !! !! !! !!
A) One reporting entity !! !!
B) Two reporting entities !! !!
C) Three reporting entities !! !!
D) Four reporting entities !! !!
2
