,Test Bank For Corporate Financial Accounting 15th Edition
Chapter 1. Introduction to Accounting and Business.
Chapter 1. Introduction to Accounting and Business.
1. 001: A corporation is a business that is legally separate and di
A corporation is a business that is legally separate and distinct from
its owners.
*a. True
b. False
2. 002: The role of accounting is to provide many different users w
The role of accounting is to provide many different users with
financial information to make economic decisions.
*a. True
b. False
3. 003: Accounting information users need reports about the economi
Accounting information users need reports about the economic activities
and condition of businesses.
*a. True
b. False
4. 004: Managerial accounting information is used by external and i
Managerial accounting information is used by external and internal
users equally.
a. True
*b. False
5. 005: Senior executives cannot be criminally prosecuted for the w
Senior executives cannot be criminally prosecuted for the wrong doings
they commit on behalf of the companies where they work.
a. True
*b. False
6. 006: Financial accounting provides information to all users, whi
Financial accounting provides information to all users, while the main
focus for managerial accounting is to provide information to the
management.
*a. True
b. False
7. 007: Proper ethical conduct implies that you only consider what&
Proper ethical conduct implies that you only consider what's in your
best interest.
1
,Test Bank For Corporate Financial Accounting 15th Edition
Chapter 1. Introduction to Accounting and Business.
a. True
*b. False
8. 008: Some of the major fraudulent acts by senior executives star
Some of the major fraudulent acts by senior executives started as what
they considered to be small ethical lapses which grew out of control.
*a. True
b. False
9. 009: A business is an organization in which basic resources or i
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
10. 010: Two factors that typically lead to ethical violations are r
Two factors that typically lead to ethical violations are relevance and
timeliness of accounting information.
a. True
*b. False
11. 011: An example of a general-purpose financial statement would b
An example of a general-purpose financial statement would be a report
about projected price increases related to transportation costs.
a. True
*b. False
12. 012: The Sarbanes-Oxley Act established standards for corporate
The Sarbanes-Oxley Act established standards for corporate
responsibility and disclosure.
*a. True
b. False
13. 013: The main objective for all businesses is to maximize unreal
The main objective for all businesses is to maximize unrealized
profits.
a. True
*b. False
2
, Test Bank For Corporate Financial Accounting 15th Edition
Chapter 1. Introduction to Accounting and Business.
14. 014: The primary role of accounting is to determine the amount o
The primary role of accounting is to determine the amount of taxes a
business will be required to pay to taxing entities.
a. True
*b. False
15. 015: The basic difference between manufacturing and retail compa
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
16. 016: Proprietorships are owned by one owner and provide only ser
Proprietorships are owned by one owner and provide only services to
their customers.
a. True
*b. False
17. 017: About 90% of the businesses in the United States are organi
About 90% of the businesses in the United States are organized as
corporations.
a. True
*b. False
18. 018: An example of an external user of accounting information is
An example of an external user of accounting information is the federal
government.
*a. True
b. False
19. 019: The Financial Accounting Standards Board (FASB) is the auth
The Financial Accounting Standards Board (FASB) is the authoritative
body that has primary responsibility for developing accounting
principles.
*a. True
b. False
20. 020: The cost concept is the basis for entering the purchase pri
The cost principle is the basis for entering the purchase price into
the accounting records.
*a. True
b. False
3
Chapter 1. Introduction to Accounting and Business.
Chapter 1. Introduction to Accounting and Business.
1. 001: A corporation is a business that is legally separate and di
A corporation is a business that is legally separate and distinct from
its owners.
*a. True
b. False
2. 002: The role of accounting is to provide many different users w
The role of accounting is to provide many different users with
financial information to make economic decisions.
*a. True
b. False
3. 003: Accounting information users need reports about the economi
Accounting information users need reports about the economic activities
and condition of businesses.
*a. True
b. False
4. 004: Managerial accounting information is used by external and i
Managerial accounting information is used by external and internal
users equally.
a. True
*b. False
5. 005: Senior executives cannot be criminally prosecuted for the w
Senior executives cannot be criminally prosecuted for the wrong doings
they commit on behalf of the companies where they work.
a. True
*b. False
6. 006: Financial accounting provides information to all users, whi
Financial accounting provides information to all users, while the main
focus for managerial accounting is to provide information to the
management.
*a. True
b. False
7. 007: Proper ethical conduct implies that you only consider what&
Proper ethical conduct implies that you only consider what's in your
best interest.
1
,Test Bank For Corporate Financial Accounting 15th Edition
Chapter 1. Introduction to Accounting and Business.
a. True
*b. False
8. 008: Some of the major fraudulent acts by senior executives star
Some of the major fraudulent acts by senior executives started as what
they considered to be small ethical lapses which grew out of control.
*a. True
b. False
9. 009: A business is an organization in which basic resources or i
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
10. 010: Two factors that typically lead to ethical violations are r
Two factors that typically lead to ethical violations are relevance and
timeliness of accounting information.
a. True
*b. False
11. 011: An example of a general-purpose financial statement would b
An example of a general-purpose financial statement would be a report
about projected price increases related to transportation costs.
a. True
*b. False
12. 012: The Sarbanes-Oxley Act established standards for corporate
The Sarbanes-Oxley Act established standards for corporate
responsibility and disclosure.
*a. True
b. False
13. 013: The main objective for all businesses is to maximize unreal
The main objective for all businesses is to maximize unrealized
profits.
a. True
*b. False
2
, Test Bank For Corporate Financial Accounting 15th Edition
Chapter 1. Introduction to Accounting and Business.
14. 014: The primary role of accounting is to determine the amount o
The primary role of accounting is to determine the amount of taxes a
business will be required to pay to taxing entities.
a. True
*b. False
15. 015: The basic difference between manufacturing and retail compa
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
16. 016: Proprietorships are owned by one owner and provide only ser
Proprietorships are owned by one owner and provide only services to
their customers.
a. True
*b. False
17. 017: About 90% of the businesses in the United States are organi
About 90% of the businesses in the United States are organized as
corporations.
a. True
*b. False
18. 018: An example of an external user of accounting information is
An example of an external user of accounting information is the federal
government.
*a. True
b. False
19. 019: The Financial Accounting Standards Board (FASB) is the auth
The Financial Accounting Standards Board (FASB) is the authoritative
body that has primary responsibility for developing accounting
principles.
*a. True
b. False
20. 020: The cost concept is the basis for entering the purchase pri
The cost principle is the basis for entering the purchase price into
the accounting records.
*a. True
b. False
3
