TEST BANK for Fundamental Accounting Principles Vol. 1 17th Edition by Kermit D. Larson , John J Wild & Barbara Chiappetta. Questions and Answer keys. A+

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Test Bank For FundamentalAccountingPrinciplesVolume
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117thEditionbyLarson e e e e e




TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Accounting is an information system that identifies, measures, records ande e e e e e e e e



communicatesrelevant information that objectively and correctly represents an organization's
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economic activities.
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⊚ true
⊚ false

Question Details e


Accessibility : Keyboard Navigation e e e


Learning Objective : 01-01 Describe the purpose and importance
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of accounting.Topic : 01-02 Power of Accounting
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Bloom's : e


RememberDifficulty
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: Easy
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2) Accounting information helps people make better decisions about the performance of a
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business.
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⊚ true
⊚ false

Question Details e


Accessibility : Keyboard Navigation e e e


Learning Objective : 01-01 Describe the purpose and importance
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of accounting.Topic : 01-02 Power of Accounting
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Bloom's : e


RememberDifficulty
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: Easy
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3) The main objective of accounting is to help people to invest in new products
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andbusinesses.
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⊚ true
⊚ false

Question Details e


Accessibility : Keyboard Navigation e e e


Learning Objective : 01-01 Describe the purpose and importance
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ofaccounting.Bloom's : Remember
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Difficulty : Easy e e




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Topic : 01-07 External Information Users
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4) Recordkeeping" is another term for "accounting". e e e e e




⊚ true
⊚ false

Question Details e


Accessibility : Keyboard Navigation e e e


Learning Objective : 01-01 Describe the purpose and importance
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ofaccounting.Bloom's : Remember
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Difficulty : Easy e e


Topic : 01-03 Focus of Accounting
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5) A sole proprietorship is a business owned by one or more persons.
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⊚ true
⊚ false

Question Details e


Accessibility : Keyboard Navigation e e u


Bloom's : Remember
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Difficulty : Easy e e


Learning Objective : 01-02 Describe forms of business
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organization.Topic : 01-05 Business Organizations
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6) A partnership requires no special legal requirements to start, other than to register the
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business name and obtain a business license.
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⊚ true
⊚ false

Question Details e


Accessibility : Keyboard e e


NavigationBloom's : Remember
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Difficulty : Easy e e


Learning Objective : 01-02 Describe forms of
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businessorganization.Topic : 01-05 Business
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Organizations
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7) Ownership of a corporation is divided into units called shares.
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⊚ true
⊚ false



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