TEST BANK
Financial & Managerial Accounting, 17th Edition
by Carl Warren, Jefferson Jones, William B. Tayler
SC
O
R
EG
U
ID
ES
, TABLE OF CONTENT
Chapter 1. Introduction to Accounting and Business
Chapter 2. Analyzing Transactions
Chapter 3. The Adjusting Process
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Businesses
Chapter 6. Inventories
Chapter 7. Internal Control and Cash
Chapter 8. Receivables
SC
Chapter 9. Long-Term Operating Assets
Chapter 10. Liabilities: Current, Notes, and Contingencies
Chapter 11. Liabilities: Bonds Payable
Chapter 12. Corporations: Organization, Stock Transactions, and Dividends
O
Chapter 13. Statement of Cash Flows
Chapter 14. Financial Statement Analysis
Chapter 15. Introduction to Managerial Accounting
R
Chapter 16. Job Order Costing
Chapter 17. Process Costing
EG
Chapter 18. Activity-Based Costing
Chapter 19. Support Department and Joint Cost Allocation
Chapter 20. Cost-Volume-Profit Analysis
Chapter 21. Variable Costing for Management Analysis
Chapter 22. Budgeting
U
Chapter 23. Evaluating Variances from Standard Costs
Chapter 24. Evaluating Decentralized Operations
ID
Chapter 25. Differential Analysis and Product Pricing
Chapter 26. Capital Investment Analysis
Chapter 27. Lean Manufacturing and Activity Analysis
ES
Chapter 28. The Balanced Scorecard and Sustainability
,Name: Class: Date:
Chapter 01: Introduction to Accounting and Business
True / False
1. The role of accounting is to provide many different users with financial information to assess the economic
performance of a business.
a. True
b. False
SC
ANSWER: True
2. Investing activities are those activities by which the company obtains funds to start and operate the business.
a. True
b. False
O
ANSWER: False
3. Managerial accounting information is used by external and internal users equally.
R
a. True
b. False
ANSWER: False
EG
4. Senior executives cannot be criminally prosecuted for the wrong-doings they commit on behalf of the companies
where they work.
a. True
b. False
U
ANSWER: False
5. Financial accounting provides information to all users, while the main focus for managerial accounting is to provide
information to management.
ID
a. True
b. False
ANSWER: True
ES
6. Proper ethical conduct implies that you only consider what's in your best interest.
a. True
b. False
ANSWER: False
7. Some of the major fraudulent acts by senior executives started as what they considered to be small ethical lapses
that grew out of control.
a. True
b. False
ANSWER: True
, Name: Class: Date:
Chapter 01: Introduction to Accounting and Business
8. A business is an organization in which basic resources or inputs, like materials and labor, are assembled and
processed to provide outputs in the form of goods or services to customers.
a. True
b. False
ANSWER: True
SC
9. Operating activities are those activities by which a company generates revenues from customers.
a. True
b. False
ANSWER: True
O
10. An example of a general-purpose financial statement would be a report about projected price increases related to
transportation costs used only by internal managers of the organization and not by external users.
a. True
R
b. False
ANSWER: False
EG
11. The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.
a. True
b. False
ANSWER: True
U
12. The main objective for all businesses is to maximize unrealized profits.
a. True
b. False
ID
ANSWER: False
13. The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing
entities.
ES
a. True
b. False
ANSWER: False
14. The basic difference between manufacturing and retail companies is the completion level of the products they
purchase for resale to customers.
a. True
b. False
ANSWER: True
Financial & Managerial Accounting, 17th Edition
by Carl Warren, Jefferson Jones, William B. Tayler
SC
O
R
EG
U
ID
ES
, TABLE OF CONTENT
Chapter 1. Introduction to Accounting and Business
Chapter 2. Analyzing Transactions
Chapter 3. The Adjusting Process
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Businesses
Chapter 6. Inventories
Chapter 7. Internal Control and Cash
Chapter 8. Receivables
SC
Chapter 9. Long-Term Operating Assets
Chapter 10. Liabilities: Current, Notes, and Contingencies
Chapter 11. Liabilities: Bonds Payable
Chapter 12. Corporations: Organization, Stock Transactions, and Dividends
O
Chapter 13. Statement of Cash Flows
Chapter 14. Financial Statement Analysis
Chapter 15. Introduction to Managerial Accounting
R
Chapter 16. Job Order Costing
Chapter 17. Process Costing
EG
Chapter 18. Activity-Based Costing
Chapter 19. Support Department and Joint Cost Allocation
Chapter 20. Cost-Volume-Profit Analysis
Chapter 21. Variable Costing for Management Analysis
Chapter 22. Budgeting
U
Chapter 23. Evaluating Variances from Standard Costs
Chapter 24. Evaluating Decentralized Operations
ID
Chapter 25. Differential Analysis and Product Pricing
Chapter 26. Capital Investment Analysis
Chapter 27. Lean Manufacturing and Activity Analysis
ES
Chapter 28. The Balanced Scorecard and Sustainability
,Name: Class: Date:
Chapter 01: Introduction to Accounting and Business
True / False
1. The role of accounting is to provide many different users with financial information to assess the economic
performance of a business.
a. True
b. False
SC
ANSWER: True
2. Investing activities are those activities by which the company obtains funds to start and operate the business.
a. True
b. False
O
ANSWER: False
3. Managerial accounting information is used by external and internal users equally.
R
a. True
b. False
ANSWER: False
EG
4. Senior executives cannot be criminally prosecuted for the wrong-doings they commit on behalf of the companies
where they work.
a. True
b. False
U
ANSWER: False
5. Financial accounting provides information to all users, while the main focus for managerial accounting is to provide
information to management.
ID
a. True
b. False
ANSWER: True
ES
6. Proper ethical conduct implies that you only consider what's in your best interest.
a. True
b. False
ANSWER: False
7. Some of the major fraudulent acts by senior executives started as what they considered to be small ethical lapses
that grew out of control.
a. True
b. False
ANSWER: True
, Name: Class: Date:
Chapter 01: Introduction to Accounting and Business
8. A business is an organization in which basic resources or inputs, like materials and labor, are assembled and
processed to provide outputs in the form of goods or services to customers.
a. True
b. False
ANSWER: True
SC
9. Operating activities are those activities by which a company generates revenues from customers.
a. True
b. False
ANSWER: True
O
10. An example of a general-purpose financial statement would be a report about projected price increases related to
transportation costs used only by internal managers of the organization and not by external users.
a. True
R
b. False
ANSWER: False
EG
11. The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.
a. True
b. False
ANSWER: True
U
12. The main objective for all businesses is to maximize unrealized profits.
a. True
b. False
ID
ANSWER: False
13. The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing
entities.
ES
a. True
b. False
ANSWER: False
14. The basic difference between manufacturing and retail companies is the completion level of the products they
purchase for resale to customers.
a. True
b. False
ANSWER: True
