Test bank for financial accounting fundamentals 8th edition by Wild

Financial Accounting Fundamentals 8th Edition by Wild CH01 Version 1 1 TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Accounting is an information and measurement system that identifies, records, and communicates an organization's business activities. 1) ______ ⊚ true ⊚ false 2) Accounting includes the analysis and interpretation of information. 2) ______ ⊚ true ⊚ false 3) Financial accounting focuses on the needs of external users, who get accounting information from general-purpose financial statements. 3) ______ ⊚ true ⊚ false 4) Internal users of accounting information do not directly manage the organization and have limited access to its accounting information. 4) ______ ⊚ true ⊚ false 5) Auditors verify the effectiveness of internal controls. 5) ______ ⊚ true ⊚ false 6) External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles. Edition Wild Financial Accounting Fundamentals 8th Edition by Wild CH01 Version 1 2 6) ______ ⊚ true ⊚ false 7) External users include lenders, shareholders, customers, and regulators. 7) ______ ⊚ true ⊚ false 8) Internal users include lenders, shareholders, brokers and nonexecutive employees. 8) ______ ⊚ true ⊚ false 9) Opportunities in accounting include auditing, consulting, market research, and tax planning. 9) ______ ⊚ true ⊚ false 10) The fraud triangle shows that three factors that push a person to commit fraud are opportunity, pressure, and rationalization. 10) ______ ⊚ true ⊚ false 11) Internal controls are procedures to protect assets, ensure reliable accounting, promote efficiency, and uphold company policies. 11) ______ ⊚ true ⊚ false DOWNLOAD THE Test Bank for Financial Accounting Fundamentals 8th Edition Wild Financial Accounting Fundamentals 8th Edition by Wild CH01 Version 1 3 12) A partnership is a business owned by two or more people. 12) ______ ⊚ true ⊚ false 13) Owners of a corporation are called shareholders or stockholders. 13) ______ ⊚ true ⊚ false 14) In a partnership, the owners are called stockholders. 14) ______ ⊚ true ⊚ false 15) The balance sheet shows a company's net income or loss over a period of time. 15) ______ ⊚ true ⊚ false 16) The Financial Accounting Standards Board (FASB) is given the task of setting generally accepted accounting principles (GAAP) from the Securities and Exchange Commission. 16) ______ ⊚ true ⊚ false 17) The business entity assumption means that accounting information presumes that the business will continue operating instead of being closed or sold. 17) ______ DOWNLOAD THE Test Bank for Financial Accounting Fundamentals 8th Edition Wild Financial Accounting Fundamentals 8th Edition by Wild CH01 Version 1 4 ⊚ true ⊚ false 18) GAAP wants information to have relevance and faithful representation. 18) ______ ⊚ true ⊚ false 19) The business entity assumption means that a business is accounted for separately from other business entities and its owner(s). 19) ______ ⊚ true ⊚ false 20) Revenues should not be recognized in the accounting records when earned, but rather when cash is received. 20) ______ ⊚ true ⊚ false 21) Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice. 21) ______ ⊚ true ⊚ false 22) A sole proprietorship is a business with multiple owner