TEST BANK FOR nb nb
Horngren's Accounting, The Financial Chapters, 14th edition Nobles
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Chapter 1-17 nb
1
Copyright © 2024 Pearson Education, Inc.
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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 nb nb
1) Accounting is the information system that measures business activities, processes the information int
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o reports, and communicates the results to decision makers.
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Answer: TRUE n b
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg
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e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
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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 business
n b nb nb nb nb nb nb nb nb nb nb nb nb nb nb
es and personal items.
nb nb nb
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg
n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
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H2 : Why is Accounting Important? (H1)
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3) Accounting starts with economic activities that accountants review and evaluate using critical thinkin
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g and judgment to create useful information that helps individuals make good decisions.
nb nb nb nb nb nb nb nb nb nb nb nb
Answer: TRUE n b
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg
n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n 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 communicatin
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g business information to decision makers.
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Answer: TRUE n b
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg
n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Why is Accounting Important? (H1)
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2
Copyright © 2024 Pearson Education, Inc.
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, 3
Copyright © 2024 Pearson Education, Inc.
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, 5) A model called the
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was created to help students and the public understand what accounting is.
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A) Decision Making Model nb nb
B) Business Model nb
C) Pathways Vision Model nb nb
D) Cost Model nb
Answer: C
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Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Why is Accounting Important? (H1)
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6) The Pathways Vision Model emphasizes that good decisions have an impact on
nb nb nb nb nb nb nb nb nb nb nb .
A) accounting judgments and economic activity nb nb nb nb
B) accounting judgments only nb nb
C) economic activity only nb nb
D) neither accounting judgments nor economic activit
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y Answer: A
nb n b
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg n b nb nb
e AICPA Functional: Measureme
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nt PE Question Type: Concept
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H2 : Why is Accounting Important? (H1)
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7) Managerial accounting focuses on providing information for external decision maker
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s. Answer: FALSE
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Explanation: Managerial accounting focuses on providing information for internal decision makers.
n b n b nb nb nb nb nb nb nb nb nb
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Decision Makers: The Users of Accounting Information
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8) Investors primarily use managerial accounting information for decision-
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making purposes. Answer: FALSE nb nb n b
Explanation: External users (investors) use financial accounting information.
n b nb nb nb nb nb nb
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
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H2 : Decision Makers: The Users of Accounting Information
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4
Copyright © 2024 Pearson Education, Inc. nb nb nb nb nb
Horngren's Accounting, The Financial Chapters, 14th edition Nobles
nb nb nb nb nb nb nb
Chapter 1-17 nb
1
Copyright © 2024 Pearson Education, Inc.
nb nb nb nb nb
,Horngren's Accounting: The Financial Chapters, 14e (Miller-Nobles)
nb nb nb nb nb nb
Chapter F:1 Accounting and the Business Environment
nb nb nb nb nb
Learning Objective F:1-1 nb nb
1) Accounting is the information system that measures business activities, processes the information int
nb nb nb nb nb nb nb nb nb nb nb nb
o reports, and communicates the results to decision makers.
nb nb nb nb nb nb nb nb
Answer: TRUE n b
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg
n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n 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
nb nb nb nb nb nb nb nb nb nb nb nb nb nb
. Answer: FALSE
nb n b
Explanation: The knowledge of accounting is used daily to assist in making decisions for both business
n b nb nb nb nb nb nb nb nb nb nb nb nb nb nb
es and personal items.
nb nb nb
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg
n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Why is Accounting Important? (H1)
nb n b n b nb nb nb nb
3) Accounting starts with economic activities that accountants review and evaluate using critical thinkin
nb nb nb nb nb nb nb nb nb nb nb nb
g and judgment to create useful information that helps individuals make good decisions.
nb nb nb nb nb nb nb nb nb nb nb nb
Answer: TRUE n b
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg
n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n 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 communicatin
nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb
g business information to decision makers.
nb nb nb nb nb
Answer: TRUE n b
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg
n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Why is Accounting Important? (H1)
nb n b n b nb nb nb nb
2
Copyright © 2024 Pearson Education, Inc.
nb nb nb nb nb
, 3
Copyright © 2024 Pearson Education, Inc.
nb nb nb nb nb
, 5) A model called the
nb nb nb
was created to help students and the public understand what accounting is.
nb nb nb nb nb nb nb nb nb nb nb
A) Decision Making Model nb nb
B) Business Model nb
C) Pathways Vision Model nb nb
D) Cost Model nb
Answer: C
nb n b nb
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Why is Accounting Important? (H1)
nb n b n b nb nb nb nb
6) The Pathways Vision Model emphasizes that good decisions have an impact on
nb nb nb nb nb nb nb nb nb nb nb .
A) accounting judgments and economic activity nb nb nb nb
B) accounting judgments only nb nb
C) economic activity only nb nb
D) neither accounting judgments nor economic activit
nb nb nb nb nb
y Answer: A
nb n b
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Why is Accounting Important? (H1)
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7) Managerial accounting focuses on providing information for external decision maker
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s. Answer: FALSE
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Explanation: Managerial accounting focuses on providing information for internal decision makers.
n b n b nb nb nb nb nb nb nb nb nb
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Decision Makers: The Users of Accounting Information
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8) Investors primarily use managerial accounting information for decision-
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making purposes. Answer: FALSE nb nb n b
Explanation: External users (investors) use financial accounting information.
n b nb nb nb nb nb nb
Diff: 1 nb
LO: F:1-1 n b n b
AACSB: Application of knowledg n b nb nb
e AICPA Functional: Measureme
nb nb n b
nt PE Question Type: Concept
nb nb nb n b
H2 : Decision Makers: The Users of Accounting Information
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4
Copyright © 2024 Pearson Education, Inc. nb nb nb nb nb
