Test bank complete_
Accounting concepts and applications 11th edition
By w. Steve albrecht, james d. Stice, earl k. Stice & monte r. Swain
all chapters 1-24| latest edition with verified answers| rated a+
,chapter 1—accounting information: users and uses ------------------------------------------------------- 3
chapter 2—financial statements: an overview ------------------------------------------------------------ 18
chapter 3—the accounting cycle: the mechanics of accounting --------------------------------------- 51
chapter 4—completing the accounting cycle --------------------------------------------------------------- 88
chapter 5—internal controls: ensuring the integrity of financial information -------------------- 131
chapter 6—receivables: selling a product or a service -------------------------------------------------- 161
chapter 7—inventory and the cost of sales ---------------------------------------------------------------- 200
chapter 8—completing the operating cycle --------------------------------------------------------------- 251
chapter 9—investments: property, plant, and equipment and intangible assets ---------------- 280
chapter 10—financing: long-term liabilities --------------------------------------------------------------- 319
chapter 11—financing: equity -------------------------------------------------------------------------------- 353
chapter 12—investments: debt and equity securities --------------------------------------------------- 378
chapter 13—statement of cash flows ----------------------------------------------------------------------- 409
chapter 14—analyzing financial statements -------------------------------------------------------------- 446
chapter 15—management accounting and cost concepts --------------------------------------------- 475
chapter 16—cost flows and business organizations ----------------------------------------------------- 501
chapter 17—activity-based costing -------------------------------------------------------------------------- 548
chapter 18—budgeting and control ------------------------------------------------------------------------- 574
chapter 19—controlling cost and profit -------------------------------------------------------------------- 616
chapter 20—inventory management and variable and absorption costing ----------------------- 656
chapter 21—cost behavior and decisions using c-v-p analysis---------------------------------------- 682
chapter 22—relevant information and decisions -------------------------------------------------------- 724
chapter 23—capital investment decisions ----------------------------------------------------------------- 756
chapter 24—new measures of performance -------------------------------------------------------------- 787
,Chapter 1—accounting information: users and uses
w. Steve albrecht: accounting concepts and applications 11th edition, test bank
Multiple choice
1. Which of the following is not typically true of accounting information?
A. The information is quantitative in nature.
B. The information relates to future time periods.
C. The information relates to specific accounting entities.
D. The information is primarily financial in nature.
ANSWER:> b
Accounting information primarily reflects past and present data, not future data. The
focus is on recording and reporting economic events that have already occurred. Hence,
the statement that accounting information relates to future time periods is not typically
true.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
2. Which of the following is true about the double-entry system of bookkeeping?
A. It was developed in the 1300s–1400s in france.
B. It was developed in the 1800s in italy.
C. It was developed in the 1300s–1400s in italy.
D. It was developed in the 1800s in the united states.
ANSWER:> c
The double-entry system of bookkeeping was developed in italy during the 1300s–1400s,
most notably formalized by luca pacioli, a franciscan friar and mathematician. This
system ensures that every transaction is recorded in at least two accounts, keeping the
accounting equation balanced.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
3. Businesses use accounting systems to
A. Analyze transactions
B. Handle routine bookkeeping tasks
C. Evaluate the performance and health of the business
D. All of these are correct
ANSWER:> d
, Accounting systems serve multiple purposes within a business. They help analyze
transactions, manage routine bookkeeping, and assess the financial health and
performance of the company. Hence, all the listed functions are essential components of a
business’s accounting system.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
4. Which of the following is the most correct definition of accounting?
A. A system for providing quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions.
B. An entity without a profit objective, oriented toward providing services efficiently and
effectively.
C. The preservation of a systematic, quantitative record of an activity.
D. The procedures and processes used by a company to analyze transactions and handle
routine bookkeeping tasks.
ANSWER:> a
Accounting is defined as the systematic process of providing quantitative, primarily
financial, information about economic entities. This information helps in making
informed economic decisions. The key aspect of accounting is that it provides useful
financial data to decision-makers.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
5. Which of the following is not a function of accounting?
A. Accumulating economic information about organizations
B. Measuring economic information about organizations
C. Executing sales transactions for organizations
D. Communicating economic information about organizations
ANSWER:> c
Executing sales transactions is a function of sales and marketing, not accounting.
Accounting is concerned with accumulating, measuring, and communicating financial
data to stakeholders, not executing specific business transactions.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
6. Which of the following is not a key component of the definition of accounting?
A. Financial
B. Qualitative
C. Useful
D. Decision-oriented
ANSWER:> b
Accounting concepts and applications 11th edition
By w. Steve albrecht, james d. Stice, earl k. Stice & monte r. Swain
all chapters 1-24| latest edition with verified answers| rated a+
,chapter 1—accounting information: users and uses ------------------------------------------------------- 3
chapter 2—financial statements: an overview ------------------------------------------------------------ 18
chapter 3—the accounting cycle: the mechanics of accounting --------------------------------------- 51
chapter 4—completing the accounting cycle --------------------------------------------------------------- 88
chapter 5—internal controls: ensuring the integrity of financial information -------------------- 131
chapter 6—receivables: selling a product or a service -------------------------------------------------- 161
chapter 7—inventory and the cost of sales ---------------------------------------------------------------- 200
chapter 8—completing the operating cycle --------------------------------------------------------------- 251
chapter 9—investments: property, plant, and equipment and intangible assets ---------------- 280
chapter 10—financing: long-term liabilities --------------------------------------------------------------- 319
chapter 11—financing: equity -------------------------------------------------------------------------------- 353
chapter 12—investments: debt and equity securities --------------------------------------------------- 378
chapter 13—statement of cash flows ----------------------------------------------------------------------- 409
chapter 14—analyzing financial statements -------------------------------------------------------------- 446
chapter 15—management accounting and cost concepts --------------------------------------------- 475
chapter 16—cost flows and business organizations ----------------------------------------------------- 501
chapter 17—activity-based costing -------------------------------------------------------------------------- 548
chapter 18—budgeting and control ------------------------------------------------------------------------- 574
chapter 19—controlling cost and profit -------------------------------------------------------------------- 616
chapter 20—inventory management and variable and absorption costing ----------------------- 656
chapter 21—cost behavior and decisions using c-v-p analysis---------------------------------------- 682
chapter 22—relevant information and decisions -------------------------------------------------------- 724
chapter 23—capital investment decisions ----------------------------------------------------------------- 756
chapter 24—new measures of performance -------------------------------------------------------------- 787
,Chapter 1—accounting information: users and uses
w. Steve albrecht: accounting concepts and applications 11th edition, test bank
Multiple choice
1. Which of the following is not typically true of accounting information?
A. The information is quantitative in nature.
B. The information relates to future time periods.
C. The information relates to specific accounting entities.
D. The information is primarily financial in nature.
ANSWER:> b
Accounting information primarily reflects past and present data, not future data. The
focus is on recording and reporting economic events that have already occurred. Hence,
the statement that accounting information relates to future time periods is not typically
true.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
2. Which of the following is true about the double-entry system of bookkeeping?
A. It was developed in the 1300s–1400s in france.
B. It was developed in the 1800s in italy.
C. It was developed in the 1300s–1400s in italy.
D. It was developed in the 1800s in the united states.
ANSWER:> c
The double-entry system of bookkeeping was developed in italy during the 1300s–1400s,
most notably formalized by luca pacioli, a franciscan friar and mathematician. This
system ensures that every transaction is recorded in at least two accounts, keeping the
accounting equation balanced.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
3. Businesses use accounting systems to
A. Analyze transactions
B. Handle routine bookkeeping tasks
C. Evaluate the performance and health of the business
D. All of these are correct
ANSWER:> d
, Accounting systems serve multiple purposes within a business. They help analyze
transactions, manage routine bookkeeping, and assess the financial health and
performance of the company. Hence, all the listed functions are essential components of a
business’s accounting system.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
4. Which of the following is the most correct definition of accounting?
A. A system for providing quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions.
B. An entity without a profit objective, oriented toward providing services efficiently and
effectively.
C. The preservation of a systematic, quantitative record of an activity.
D. The procedures and processes used by a company to analyze transactions and handle
routine bookkeeping tasks.
ANSWER:> a
Accounting is defined as the systematic process of providing quantitative, primarily
financial, information about economic entities. This information helps in making
informed economic decisions. The key aspect of accounting is that it provides useful
financial data to decision-makers.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
5. Which of the following is not a function of accounting?
A. Accumulating economic information about organizations
B. Measuring economic information about organizations
C. Executing sales transactions for organizations
D. Communicating economic information about organizations
ANSWER:> c
Executing sales transactions is a function of sales and marketing, not accounting.
Accounting is concerned with accumulating, measuring, and communicating financial
data to stakeholders, not executing specific business transactions.
Pts: 1 | dif: easy | obj: 1.1 | nat: aacsb reflective thinking | aicpa fn measurement
6. Which of the following is not a key component of the definition of accounting?
A. Financial
B. Qualitative
C. Useful
D. Decision-oriented
ANSWER:> b
