Test bank for financial accounting fundamentals 8th edition by john wild

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FinancialAccountingFundamentals,8thEdition
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ByJohnWild,Chapter1-13
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,Chapter1:AccountinginBusiness
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Chapter2:AccountingforBusinessTransactions
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FinancialStatements Chapter4:AccountingforMerchandisingOperations
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5:InventoriesandCostofSales
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Chapter6:Cash,Fraud,andInternalControl
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Receivables
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9:AccountingforCurrentLiabilities
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Chapter10:AccountingforLong-TermLiabilities
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ReportingandAnalysis
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Chapter13:AnalysisofFinancialStatements
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, Answers are at the End of Each Chapter
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Chapter1:AccountinginBusiness
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Student name: ltI lltII




TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Accountingisaninformationandmeasurement systemthat identifies,records, ltI ltI ltI ltI ltI ltI ltI ltI ltI




l andcommunicatesanorganization'sbusinessactivities.
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⊚ true lltII lltII l l t I I




⊚ lltII lltII l l t I I false
2) Accountingincludestheanalysisandinterpretation ofinformation. ltI ltI ltI ltI ltI ltI ltI




⊚ lltII lltII l l t I I true


⊚ false lltII lltII l l t I I




3) Financialaccountingfocuses onthe needs of external users, whogetaccounting
informationfrom general-purpose financial statements.
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⊚ lltII lltII l l t I I true


⊚ false lltII lltII l l t I I




4) Internalusers ofaccounting information do not directlymanage theorganizationand
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havelimitedaccesstoitsaccountinginformation. ltI ltI ltI ltI ltI




⊚ lltII lltII l l t I I true


⊚ lltII lltII l l t I I false
5) Auditorsverifytheeffectiveness ofinternal controls. ltI ltI ltI ltI ltI ltI




⊚ lltII lltII l l t I I true


⊚ false lltII lltII l l t I I




6) Externalauditors examinefinancialstatements toverifythat theyarepreparedaccording
togenerallyacceptedaccountingprinciples.
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7) Externalusersincludelenders,shareholders,customers,andregulators.
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⊚ lltII lltII l l t I I true


⊚ lltII lltII l l t I I false

, 8) Internalusersincludelenders,shareholders,brokersandnonexecutiveemployees.
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⊚ lltII lltII l l t I I true


⊚ lltII lltII l l t I I false
9) Opportunitiesinaccountingincludeauditing,consulting, marketresearch, andtaxplanning. ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI




⊚ lltII lltII l l t I I true


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10) The fraud triangleshows that three factors that push a person to commit fraud
areopportunity,pressure,andrationalization.
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11) Internalcontrols areprocedures toprotectassets,ensurereliableaccounting,
promoteefficiency,andupholdcompanypolicies.
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12) Apartnership is a business owned by two or more people.
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⊚ lltII lltII l l t I I true


⊚ lltII lltII l l t I I false
13) Ownersofacorporation arecalledshareholders orstockholders.
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⊚ lltII lltII l l t I I true


⊚ lltII lltII l l t I I false
14) Ina partnership,the ownersarecalled stockholders.
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⊚ lltII lltII l l t I I true


⊚ lltII lltII l l t I I false
15) The balancesheet shows a company's net income or loss over a period of time.
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16) The FinancialAccounting Standards Board (FASB) isgiven the task of setting generally
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acceptedaccountingprinciples (GAAP)fromtheSecuritiesandExchangeCommission.
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true
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