Solutions Manual / Test Bank for Financial Accounting Fundamentals, 8th Edition, By John Wild

SOLUTIONS MANUAL for Financial Accounting Fundamentals, 8th Edition, By John Wild




Solutions Manual / Test Bank for Financial
Accounting Fundamentals, 8th Edition, By
John Wild




Test Bank Page 1

, SOLUTIONS MANUAL for Financial Accounting Fundamentals, 8th Edition, By John Wild




Financial Accounting Fundamentals, 8e (Wild)
Chapter 1 Accounting in Business


1) Accounting is an information and measurement system that identifies, records, and
communicates relevant, reliable, and comparable information about an organization's business
activities.


Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
Accessible/AICPA: Keyboard Navigation


2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually
or electronically. This is just one part of accounting.


Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
Accessible/AICPA: Keyboard Navigation


3) An accounting system captures relevant data about transactions and then classifies, records,
and reports data.


Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting

Test Bank Page 2

, SOLUTIONS MANUAL for Financial Accounting Fundamentals, 8th Edition, By John Wild




Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
Accessible/AICPA: Keyboard Navigation


4) Financial accounting is the area of accounting aimed at serving external users by providing
them with general-purpose financial statements.


Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB: Communication
Accessible/AICPA: Keyboard Navigation

5) Internal operating activities include research and development, distribution, and human
resources.


Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB: Communication
Accessible/AICPA: Keyboard Navigation


6) The primary objective of managerial accounting is to provide general purpose financial
statements to help external users analyze and interpret an organization's activities.


Answer: FALSE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.

Test Bank Page 3

, SOLUTIONS MANUAL for Financial Accounting Fundamentals, 8th Edition, By John Wild




Bloom's: Remember
AACSB: Communication
Accessible/AICPA: Keyboard Navigation


7) External auditors examine financial statements to verify that they are prepared according to
generally accepted accounting principles.


Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB: Communication
Accessible/AICPA: Keyboard Navigation


8) External users include lenders, shareholders, customers, and regulators.


Answer: TRUE
Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Understand
AACSB: Communication
Accessible/AICPA: Keyboard Navigation




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