Test Bank for Horngren’s Accounting: The Financial Chapters 14th Edition by Tracie L. Miller-Nobles & Brenda Mattison – Complete Questions & Answers Study Guide

Test Bank :
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Horngren’s Accounting The Financial Chapters
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14th Edition Miller-Nobles Mattison Complete
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Guide Financial Accounting Exam Prep PDF
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,Horngren's Accounting:The Financial Chapters, 14e (Miller-Nobles)
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Chapter F:1 Accounting and the Business Environment
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Learning Objective F:1-1 b b




1) Accounting is the information system that measures business activities, processes the information into
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reports, and communicates the results to decision makers.
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Answer: TRUE b




Diff: 1 b




LO: F:1-1
b b




AACSB: Application of knowledge b b b




AICPA Functional: Measurement
b b b




PE Question Type: Concept
b b b b




H2 : Why is Accounting Important? (H1)
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2) The knowledge of accounting is rarely used to help make business and personal financial decisions.
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Answer: FALSE
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Explanation: The knowledge of accounting is used daily to assist in making decisions for both businesses and
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personal items.
b b




Diff: 1 b




LO: F:1-1
b b




AACSB: Application of knowledge b b b




AICPA Functional: Measurement
b b b




PE Question Type: Concept
b b b b




H2 : Why is Accounting Important? (H1)
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3) Accounting starts with economic activities that accountants review and evaluate using critical thinking
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and judgment to create useful information that helps individuals make good decisions.
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Answer: TRUE b




Diff: 1 b




LO: F:1-1
b b




AACSB: Application of knowledge b b b




AICPA Functional: Measurement
b b b




PE Question Type: Concept
b b b b




H2 : Why is Accounting Important? (H1)
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4) Accounting is referred to as the language of business because it is the method of communicating
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business information to decision makers.
b b b b b




Answer: TRUE b




Diff: 1 b




LO: F:1-1
b b




AACSB: Application of knowledge b b b




AICPA Functional: Measurement
b b b




PE Question Type: Concept
b b b b




H2 : Why is Accounting Important? (H1)
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, 5) A model called the
b b b was created to help students and the public understand what accounting is.
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A) Decision Making Model b b




B) Business Model b




C) Pathways Vision Model b b




D) Cost Model b




Answer: C
b b




Diff: 1
b b




LO: F:1-1
b b




AACSB: Application of knowledge b b b




AICPA Functional: Measurement
b b b




PE Question Type: Concept
b b b b




H2 : Why is Accounting Important? (H1)
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6) The Pathways Vision Model emphasizes that good decisions have an impact on
b b b b b b b b b b b .
A) accounting judgments and economic activity b b b b




B) accounting judgments only b b




C) economic activity only b b




D) neither accounting judgments nor economic activity
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Answer: A
b b




Diff: 1 b




LO: F:1-1
b b




AACSB: Application of knowledge b b b




AICPA Functional: Measurement
b b b




PE Question Type: Concept
b b b b




H2 : Why is Accounting Important? (H1)
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7) Managerial accounting focuses on providing information for external decision makers.
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Answer: FALSE
b b




Explanation: Managerial accounting focuses on providing information for internal decision makers.
b b b b b b b b b b b




Diff: 1 b




LO: F:1-1
b b




AACSB: Application of knowledge b b b




AICPA Functional: Measurement
b b b




PE Question Type: Concept
b b b b




H2 : Decision Makers: The Users of Accounting Information
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8) Investors primarily use managerial accounting information for decision-making purposes.
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Answer: FALSE
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Explanation: External users (investors) use financial accounting information.
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Diff: 1 b




LO: F:1-1
b b




AACSB: Application of knowledge b b b




AICPA Functional: Measurement
b b b




PE Question Type: Concept
b b b b




H2 : Decision Makers: The Users of Accounting Information
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