?
D?
VE
RO
PP
_A
IA
UV
ST
, TABLE OF CONTENTS
Test Bank: Fundamental Accounting Principles 1, 18th Canadian
Edition
Authors: Kermit Larson, Heidi Dieckmann, John Harris, Erin Creagh
ST
CHAPTER 1: Accounting in Business
UV
CHAPTER 2: Analyzing and Recording Transactions
CHAPTER 3: Adjusting Accounts for Financial Statements
CHAPTER 4: Completing the Accounting Cycle and Classifying Accounts
IA
CHAPTER 5: Accounting for Merchandising Activities
CHAPTER 6: Inventory Costing and Valuation
_A
CHAPTER 7: Internal Control and Cash
CHAPTER 8: Receivables
CHAPTER 9: Property, Plant, and Equipment and Intangibles
PP
RO
VE
D?
?
, Chapter 1_ Accounting in Business
Student name:
1) Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
ST
⊚ true
⊚ false
UV
2) Accounting information helps people make better decisions about the performance of a
business.
⊚ true
⊚ false
IA
3) The main objective of accounting is to help people to invest in new products and businesses.
_A
⊚ true
⊚ false
PP
4) "Recordkeeping" is another term for "accounting".
⊚ true
⊚ false
RO
5) A sole proprietorship is a business owned by one or more persons.
⊚ true
⊚ false
VE
6) A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business license.
D?
⊚ true
⊚ false
?
7) Ownership of a corporation is divided into units called shares.
⊚ true
⊚ false
, Chapter 1_ Accounting in Business
8) In the partnership form of business, the owners of a business are called shareholders.
⊚ true
⊚ false
ST
9) Unlimited liability is an advantage for both a proprietorship and a partnership.
⊚ true
⊚ false
UV
10) Although a proprietorship is not a separate legal entity, a partnership is.
⊚ true
IA
⊚ false
_A
11) A corporation is responsible for its actions and any debts incurred. It can enter into its own
contracts, and it can buy, own, and sell property.
⊚ true
⊚ false
PP
12) Non-business organizations often operate educational and religious services for profit.
⊚ true
RO
⊚ false
13) Sole proprietorships and partnerships are not subject to income tax in Canada.
VE
⊚ true
⊚ false
D?
14) External users include lenders such as banks, and other creditors such as suppliers and
bondholders.
⊚ true
⊚ false
?
D?
VE
RO
PP
_A
IA
UV
ST
, TABLE OF CONTENTS
Test Bank: Fundamental Accounting Principles 1, 18th Canadian
Edition
Authors: Kermit Larson, Heidi Dieckmann, John Harris, Erin Creagh
ST
CHAPTER 1: Accounting in Business
UV
CHAPTER 2: Analyzing and Recording Transactions
CHAPTER 3: Adjusting Accounts for Financial Statements
CHAPTER 4: Completing the Accounting Cycle and Classifying Accounts
IA
CHAPTER 5: Accounting for Merchandising Activities
CHAPTER 6: Inventory Costing and Valuation
_A
CHAPTER 7: Internal Control and Cash
CHAPTER 8: Receivables
CHAPTER 9: Property, Plant, and Equipment and Intangibles
PP
RO
VE
D?
?
, Chapter 1_ Accounting in Business
Student name:
1) Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
ST
⊚ true
⊚ false
UV
2) Accounting information helps people make better decisions about the performance of a
business.
⊚ true
⊚ false
IA
3) The main objective of accounting is to help people to invest in new products and businesses.
_A
⊚ true
⊚ false
PP
4) "Recordkeeping" is another term for "accounting".
⊚ true
⊚ false
RO
5) A sole proprietorship is a business owned by one or more persons.
⊚ true
⊚ false
VE
6) A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business license.
D?
⊚ true
⊚ false
?
7) Ownership of a corporation is divided into units called shares.
⊚ true
⊚ false
, Chapter 1_ Accounting in Business
8) In the partnership form of business, the owners of a business are called shareholders.
⊚ true
⊚ false
ST
9) Unlimited liability is an advantage for both a proprietorship and a partnership.
⊚ true
⊚ false
UV
10) Although a proprietorship is not a separate legal entity, a partnership is.
⊚ true
IA
⊚ false
_A
11) A corporation is responsible for its actions and any debts incurred. It can enter into its own
contracts, and it can buy, own, and sell property.
⊚ true
⊚ false
PP
12) Non-business organizations often operate educational and religious services for profit.
⊚ true
RO
⊚ false
13) Sole proprietorships and partnerships are not subject to income tax in Canada.
VE
⊚ true
⊚ false
D?
14) External users include lenders such as banks, and other creditors such as suppliers and
bondholders.
⊚ true
⊚ false
?
