Test Bank for Fundamentals of Financial Accounting, 8th Edition by Fred Phillips and Clor-Proell Chapters 1-13 Covered

Test Bank
Fundamentals of Financial Accounting,
8th Edition by Fred Phillips and Clor-Proell
Chapters 1-13 Covered




1

,TABLE OF CONTENT
t t




1tBusinesstDecisionstandtFinancialtAccountingt


2tThetBalancetSheett


3tThetIncometStatementt


4tAdjustments,tFinancialtStatements,tandtFinancialtResultst


5tFraud,tInternaltControl,tandtCasht


6tMerchandisingtOperationstandtthetMultisteptIncometStatementt


7tInventorytandtCosttoftGoodstSoldt


8tReceivables,tBadtDebttExpense,tandtInteresttRevenuet


9tLong-LivedtTangibletandtIntangibletAssetst


10tLiabilitiest


11tStockholders’tEquityt


12tStatementtoftCashtFlowst


13tMeasuringtandtEvaluatingtFinancialtPerformance




2

,Chapter 01 8e Phillips
t t t Answers Included
t


1) Creditorstaretownerstoftatcorporation.
⊚t true
⊚t false



2) Alltcorporationstacquiretfinancingtbytissuingtstocktontpublictstocktexchanges.
⊚t true
⊚t false



3) Youtpaidt$10,000ttotbuyt1%toftthetstocktintatcorporationtthattistnowtbankrupt.tThetcompanytowe
st$10tmilliontdollarsttotitstcreditors.tAstatresulttoftthetbankruptcy,tyoutaretresponsibletfortpayingt
$100,000t(ort$10tmilliont×t1%)toftthetamounttowedttotthetcreditors.
⊚t true
⊚t false



4) Cashtpaidtfortwagestistantexampletoftantoperatingtactivitytontthetstatementtoftcashtflows.
⊚t true
⊚t false



5) Borrowingtmoneytfromtatbanktistatfinancingtactivitytontthetstatementtoftcashtflows.
⊚t true
⊚t false



6) Thetdailytbusinesstactivitiestinvolvedtintrunningtatbusiness,tsuchtastbuyingtsuppliestandtpa
yingtsalariestandtwages,taretclassifiedtastoperatingtactivitiestontthetstatementtoftcashtflow
s.
⊚t true
⊚t false



7) Stockholders'tequitytistthetdifferencetbetweentatcompany'stassetstandtitstliabilities.
⊚t true

3

, ⊚t false




4