Test Bank Accounting for Merchandising Businesses Questions Answers Inventory Sales PDF Download

,CHAPTER 6: ACCOUNTING FOR MERCHANDISING BUSINESSES
1. A corporation is a business that is legally separate and distinct from its
owners. a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms
ACCT.AICPA.BB.01 - Industry
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

2. The role of accounting is to provide many different users with financial information to make economic decisions.
a. True
b. False

ANSWER: True
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

3. Accounting information users need reports about the economic activities and condition of businesses.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.BB.01 - Industry
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic




© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

,Chapter 6: Accounting for Merchandising Businesses


4. Managerial accounting information is used by external and internal users equally.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 - Purpose ACCT.ACBSP.APC.25 -
Managerial Characteristics/Terminology ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

5. Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the
companieswhere they work.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.BB.03 - Legal
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Ethics

6. Financial accounting provides information to all users, while the main focus for managerial accounting is to
provideinformation to the management.
a. True
b. False

ANSWER: True
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

, © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.