College Accounting, 12e (Slater)
Chapter 1 Accounting Concepts and Procedures
1.1 Learning Objective 1-1
1) The type of business organization that can continue indefinitely is known as a:
A) sole proprietorship.
B) partnership.
C) corporation.
D) None of the above
Answer: C
Diff: 2
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
2) The purpose of the accounting process is to provide financial information about:
A) sole proprietorships.
B) small businesses.
C) large corporations.
D) All of these answers are correct.
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
,3) Accounting provides information to:
A) managers.
B) government.
C) investors.
D) All of these answers are correct.
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
,4) Which of the following is a characteristic of a sole proprietorship?
A) Business owned by more than one person
B) Easy to form
C) Each stockholder acts as an owner of the company
D) Can continue indefinitely
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
5) A partnership is a business which is:
A) easy to form.
B) ends with the death of a partner.
C) owned by more than one person.
D) All of these answers are correct.
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
6) Which is an advantage of a sole proprietorship form of business?
A) There is limited personal risk.
B) The business can continue indefinitely.
C) The owner makes all the decisions.
D) All of these answers are correct.
Answer: C
Diff: 1
, LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
7) Which of the following is not a type of business organization?
A) Corporation
B) Partnership
C) Sole proprietorship
D) Operation
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
Chapter 1 Accounting Concepts and Procedures
1.1 Learning Objective 1-1
1) The type of business organization that can continue indefinitely is known as a:
A) sole proprietorship.
B) partnership.
C) corporation.
D) None of the above
Answer: C
Diff: 2
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
2) The purpose of the accounting process is to provide financial information about:
A) sole proprietorships.
B) small businesses.
C) large corporations.
D) All of these answers are correct.
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
,3) Accounting provides information to:
A) managers.
B) government.
C) investors.
D) All of these answers are correct.
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
,4) Which of the following is a characteristic of a sole proprietorship?
A) Business owned by more than one person
B) Easy to form
C) Each stockholder acts as an owner of the company
D) Can continue indefinitely
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
5) A partnership is a business which is:
A) easy to form.
B) ends with the death of a partner.
C) owned by more than one person.
D) All of these answers are correct.
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
6) Which is an advantage of a sole proprietorship form of business?
A) There is limited personal risk.
B) The business can continue indefinitely.
C) The owner makes all the decisions.
D) All of these answers are correct.
Answer: C
Diff: 1
, LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
7) Which of the following is not a type of business organization?
A) Corporation
B) Partnership
C) Sole proprietorship
D) Operation
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking Skills
Learning Outcome: Define accounting terms, accounting concepts and principles
