CHAPTER 1 n
INTRODUCTION TO FINANCIAL STATEMENTS n n n
CHAPTER LEARNING OBJECTIVES n n
1. Identify the forms of business organization and the uses of accounting information. A
n n n n n n n n n n n n
sole proprietorship is a business owned by one person. A partnership is a business owned
n n n n n n n n n n n n n n n
by two or more people associated as partners. A corporation is a separate legal entity for
n n n n n n n n n n n n n n n n
which evidence of ownership is provided by shares of stock. Internal users are managers
n n n n n n n n n n n n n n
who need accounting information to plan, organize, and run business operations. The
n n n n n n n n n n n n
primary external users are investors and creditors. Investors (stockholders) use accounting
n n n n n n n n n n n
information to decide whether to buy, hold, or sell shares of a company‘s stock. Creditors
n n n n n n n n n n n n n n n
(suppliers and bankers) use accounting information to assess the risk of granting credit or
n n n n n n n n n n n n n n
loaning money to a business. Other groups who have an indirect interest in a business are
n n n n n n n n n n n n n n n n
taxing authorities, customers, labor unions, and regulatory agencies.
n n n n n n n n
2. Explain the three principal types of business activity. Financing activities involve
n n n n n n n n n n
collecting the necessary funds to support the business. Investing activities involve acquiring
n n n n n n n n n n n n
the resources necessary to run the business. Operating activities involve putting the
n n n n n n n n n n n n
resources of the business into action to generate a profit.
n n n n n n n n n n
3. Describe the four financial statements and how they are prepared. An income statement
n n n n n n n n n n n n
presents the revenues and expenses of a company for a specific period of time. A retained
n n n n n n n n n n n n n n n n
earnings statement summarizes the changes in retained earnings that have occurred for a
n n n n n n n n n n n n n
specific period of time. A balance sheet reports the assets, liabilities, and stockholders‘
n n n n n n n n n n n n n
equity of a business at a specific date. A statement of cash flows summarizes information
n n n n n n n n n n n n n n n
concerning the cash inflows (receipts) and outflows (payments) for a specific period of time.
n n n n n n n n n n n n n n
Assets are resources owned by a business. Liabilities are the debts and obligations of the
n n n n n n n n n n n n n n n
business. Liabilities represent claims of creditors on the assets of the business.
n n n n n n n n n n n n
Stockholders‘ equity represents the claims of owners on the assets of the business.
n n n n n n n n n n n n n
Stockholders‘ equity is subdivided into two parts: common stock and retained earnings. The
n n n n n n n n n n n n n
basic accounting equation is Assets = Liabilities + Stockholders‘ Equity. Within the annual
n n n n n n n n n n n n n
report, the management discussion and analysis provides management‘s interpretation of
n n n n n n n n n n
the company‘s results and financial position as well as a discussion of plans for the future.
n n n n n n n n n n n n n n n n
Notes to the financial statements provide additional explanation or detail to make the
n n n n n n n n n n n n n
financial statements more informative. The auditor‘s report expresses an opinion as to
n n n n n n n n n n n n
whether the financial statements present fairly the company‘s results of operations and
n n n n n n n n n n n n
financial position.
n n
*4. Explain the career opportunities in accounting. Accounting offers many different jobs in
n n n n n n n n n n n n
fields such as public and private accounting, governmental, and forensic accounting.
n n n n n n n n n n n
Accounting is a popular major because there are many different types of jobs, with unlimited
n n n n n n n n n n n n n n n
potential for career advancement
n n n n
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use
n n n n n n n n n n
Only)
,2-2 Test Bank for Kimmel, Financial Accounting: Tools for Business Decision Making, 10e
n n n n n n n n n n n
Difficulties:
Easy: 143 n
Medium: 101 n
Hard: 12 n
Question List by Section n n n
Business Organization and Accounting Information Uses:
n n n n n
Forms of Business Organization; 47, 48, 202, 246
n n n n n n n n
Sole Proprietorship: 5, 44, 49, 58, 59
n n n n n n
Partnership: 1, 4, 46, 56 n n n n
Corporation: 2, 3, 45, 50, 51, 52, 53, 55, 57, 233, 245 n n n n n n n n n n n
Hybrid Forms of Organization: 60, 61 n n n n n
Users and Uses of Financial Information: 6, 7, 11, 74, 87
n n n n n n n n n n
Internal Users: 62, 63, 64, 75, 77, 82, 234n n n n n n n n
External Users: 8, 9, 10, 12, 65, 76, 78, 79, 80, 81, 83, 84, 85, 86, 88, 89
n n n n n n n n n n n n n n n n n
Data Analytics: 66, 67, 68, 69, 70, 235, 236
n n n n n n n n
Ethics in Financial Reporting: 71, 72, 73, 237, 255
n n n n n n n n
nThe Three Types of Business Activity: 97
n n n n n n
Financing Activities: 13, 15, 18, 90, 91, 93, 94, 95, 96, 97, 102, 109, 117, 118, 119, 238
n n n n n n n n n n n n n n n n n
Investing Activities: 14, 16, 98, 99, 115, 116
n n n n n n n
Operating Activities: 17, 19, 20, 100, 101, 103, 104, 105, 106, 107, 108, 110, 111, 112, 113,
n n n n n n n n n n n n n n n n
114
The Four Financial Statements:
n n n
Income Statement: 21, 22, 23, 24,127, 128, 132, 133, 134, 138, 142, 143
n n n n n n n n n n n n
Retained Earnings Statement: 120, 122, 123, 124, 125, 126, 129, 130, 131, 135, 137, 139, 140,
n n n n n n n n n n n n n n n
141, 144, 145, 146, 147, 148, 149, 150, 154, 164, 169, 178, 181, 252
n n n n n n n n n n n n n
Balance Sheet: 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 136, 151, 152, 153, 163, 165, 166, 168,
n n n n n n n n n n n n n n n n n n n
170, 173, 177, 179, 180, 182, 185, 186, 187, 188, 199, 200, 201, 207, 208, 213, 214, 215, 216,
n n n n n n n n n n n n n n n n n n
217, 218, 219, 220, 221, 222, 225, 229, 239, 240, 241, 253
n n n n n n n n n n n
Statement of Cash Flows: 26, 121, 171, 174, 183, 242, 249
n n n n n n n n n n
Interrelationships of Statements: 155, 156, 157, 158, 159, 160, 161, 162, 167, 175, 176, 184,
n n n n n n n n n n n n n n
250, 251, 256
n n
Elements of an Annual Report: 36, 41, 192, 196, 197
n n n n n n n n n
Management Discussion and Analysis: 40, 191 n n n n n
Notes to the Financial Statements: 37, 42, 190, 193, 194, 198, 254
n n n n n n n n n n n
Auditor‘s Report: 38, 39, 195 n n n n
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use
n n n n n n n n n n
Only)
, A Further Look at Financial Statements
n n n n n 2-3
TRUE-FALSE STATEMENTS n
1. A business organized as a separate
n n n n n n legal entity n n and n owned n by
nstockholders is a partnership. n n n
Ans: n F, n LO: n 1, n Section: n Business n Organization nand n Accounting n Information nUses, n Subsection: n Partnership, n Bloom: n K, n Difficulty: n Easy, n Min: n 1,
n AACSB: n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
2. Corporate stockholders have no personal liability for the debts of the corporation.
n n n n n n n n n n n
Ans: nT, nLO: n1, n Section: nBusiness n Organization nand n Accounting n Information nUses, nSubsection: nCorporation, n Bloom: nK, n Difficulty: n Easy, n Min: n 1,
n AACSB: n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
3. The liability of corporate stockholders is limited to the amount of their investment.
n n n n n n n n n n n n
Ans: nT, nLO: n1, n Section: nBusiness n Organization nand n Accounting n Information nUses, nSubsection: nCorporation, n Bloom: nK, n Difficulty: n Easy, n Min: n 1,
n AACSB: n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
4. The majority of U.S. business is transacted by partnerships.
n n n n n n n n
Ans: n F, n LO: n 1, n Bloom: n K, n Section: n Business n Organization nand n Accounting n Information nUses, n Subsection: n Partnership, n Difficulty: n Easy, n Min: n 1,
n AACSB: n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
5. Sole proprietorships in the United States generate more revenue than the other two
n n n n n n n n n n n n
forms of business enterprise.
n n n n
Ans: n F, n LO: n 1, n Section: n Business n Organization n and n Accounting n Information n Uses, n Subsection: n Sole n Proprietorship, n Bloom: n K, n Difficulty:
n Easy, n Min: n 1, n AACSB: nKnowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
6. Owners of business firms are the only people who need accounting information.
n n n n n n n n n n n
Ans: n F, n LO: n 1, n Section: n Business n Organization n and n Accounting n Information n Uses, n Subsection: n Users n and n Uses n of n Financial
n Information, n Bloom: n K, n Difficulty: nEasy, nMin: n1, nAACSB: nKnowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone,
nIMA: nReporting nand nControl
7. Some users of accounting information are internal to the company while others
n n n n n n n n n n n
nare external.
n
Ans: n T, n LO: n 1, n Section: n Business n Organization n and n Accounting n Information n Uses, n Subsection: n Users n and n Uses n of n Financial
n Information, n Bloom: n K, n Difficulty: nEasy, nMin: n1, nAACSB: nKnowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone,
nIMA: nReporting nand nControl
8. Management of a business n n n n enterprise n is n the n major n external n user n of
naccounting information. n
Ans: nF, nLO: n1, nSection: nBusiness nOrganization nand nAccounting nInformation nUses, nSubsection: nExternal nUsers, nBloom: nK, nDifficulty: nEasy, nMin: n1, nAACSB:
n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
9. External users of accounting information include managers who plan, organize, and run a
n n n n n n n n n n n n
business.
n
Ans: nF, nLO: n1, nSection: nBusiness nOrganization nand nAccounting nInformation nUses, nSubsection: nExternal nUsers, nBloom: nK, nDifficulty: nEasy, nMin: n1, nAACSB:
n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
10. The accounting information needs and questions of external users vary considerably.
n n n n n n n n n n
Ans: nT, nLO: n1, nSection: nBusiness nOrganization nand nAccounting nInformation nUses, nSubsection: nExternal nUsers, nBloom: nK, nDifficulty: nEasy, nMin: n1, nAACSB:
n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
11. Accounting communicates financial information about a business to both internal
n n n n n n n n n
nand external users.
n n
Ans: n T, n LO: n 1, n Section: n Business n Organization n and n Accounting n Information n Uses, n Subsection: n Users n and n Uses n of n Financial
n Information, n Bloom: n K, n Difficulty: nEasy, nMin: n1, nAACSB: nKnowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone,
nIMA: nReporting nand nControl
12. Two primary external users of accounting information are investors and creditors.
n n n n n n n n n n
Ans: nT, nLO: n1, nSection: nBusiness nOrganization nand nAccounting nInformation nUses, nSubsection: nExternal nUsers, nBloom: nK, nDifficulty: nEasy, nMin: n1, nAACSB:
n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use
n n n n n n n n n n
Only)
, 2-4 Test Bank for Kimmel, Financial Accounting: Tools for Business Decision Making, 10e
n n n n n n n n n n n
13. Financing activities for corporations include borrowing money and selling shares of their
n n n n n n n n n n n
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use
n n n n n n n n n n
Only)
INTRODUCTION TO FINANCIAL STATEMENTS n n n
CHAPTER LEARNING OBJECTIVES n n
1. Identify the forms of business organization and the uses of accounting information. A
n n n n n n n n n n n n
sole proprietorship is a business owned by one person. A partnership is a business owned
n n n n n n n n n n n n n n n
by two or more people associated as partners. A corporation is a separate legal entity for
n n n n n n n n n n n n n n n n
which evidence of ownership is provided by shares of stock. Internal users are managers
n n n n n n n n n n n n n n
who need accounting information to plan, organize, and run business operations. The
n n n n n n n n n n n n
primary external users are investors and creditors. Investors (stockholders) use accounting
n n n n n n n n n n n
information to decide whether to buy, hold, or sell shares of a company‘s stock. Creditors
n n n n n n n n n n n n n n n
(suppliers and bankers) use accounting information to assess the risk of granting credit or
n n n n n n n n n n n n n n
loaning money to a business. Other groups who have an indirect interest in a business are
n n n n n n n n n n n n n n n n
taxing authorities, customers, labor unions, and regulatory agencies.
n n n n n n n n
2. Explain the three principal types of business activity. Financing activities involve
n n n n n n n n n n
collecting the necessary funds to support the business. Investing activities involve acquiring
n n n n n n n n n n n n
the resources necessary to run the business. Operating activities involve putting the
n n n n n n n n n n n n
resources of the business into action to generate a profit.
n n n n n n n n n n
3. Describe the four financial statements and how they are prepared. An income statement
n n n n n n n n n n n n
presents the revenues and expenses of a company for a specific period of time. A retained
n n n n n n n n n n n n n n n n
earnings statement summarizes the changes in retained earnings that have occurred for a
n n n n n n n n n n n n n
specific period of time. A balance sheet reports the assets, liabilities, and stockholders‘
n n n n n n n n n n n n n
equity of a business at a specific date. A statement of cash flows summarizes information
n n n n n n n n n n n n n n n
concerning the cash inflows (receipts) and outflows (payments) for a specific period of time.
n n n n n n n n n n n n n n
Assets are resources owned by a business. Liabilities are the debts and obligations of the
n n n n n n n n n n n n n n n
business. Liabilities represent claims of creditors on the assets of the business.
n n n n n n n n n n n n
Stockholders‘ equity represents the claims of owners on the assets of the business.
n n n n n n n n n n n n n
Stockholders‘ equity is subdivided into two parts: common stock and retained earnings. The
n n n n n n n n n n n n n
basic accounting equation is Assets = Liabilities + Stockholders‘ Equity. Within the annual
n n n n n n n n n n n n n
report, the management discussion and analysis provides management‘s interpretation of
n n n n n n n n n n
the company‘s results and financial position as well as a discussion of plans for the future.
n n n n n n n n n n n n n n n n
Notes to the financial statements provide additional explanation or detail to make the
n n n n n n n n n n n n n
financial statements more informative. The auditor‘s report expresses an opinion as to
n n n n n n n n n n n n
whether the financial statements present fairly the company‘s results of operations and
n n n n n n n n n n n n
financial position.
n n
*4. Explain the career opportunities in accounting. Accounting offers many different jobs in
n n n n n n n n n n n n
fields such as public and private accounting, governmental, and forensic accounting.
n n n n n n n n n n n
Accounting is a popular major because there are many different types of jobs, with unlimited
n n n n n n n n n n n n n n n
potential for career advancement
n n n n
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use
n n n n n n n n n n
Only)
,2-2 Test Bank for Kimmel, Financial Accounting: Tools for Business Decision Making, 10e
n n n n n n n n n n n
Difficulties:
Easy: 143 n
Medium: 101 n
Hard: 12 n
Question List by Section n n n
Business Organization and Accounting Information Uses:
n n n n n
Forms of Business Organization; 47, 48, 202, 246
n n n n n n n n
Sole Proprietorship: 5, 44, 49, 58, 59
n n n n n n
Partnership: 1, 4, 46, 56 n n n n
Corporation: 2, 3, 45, 50, 51, 52, 53, 55, 57, 233, 245 n n n n n n n n n n n
Hybrid Forms of Organization: 60, 61 n n n n n
Users and Uses of Financial Information: 6, 7, 11, 74, 87
n n n n n n n n n n
Internal Users: 62, 63, 64, 75, 77, 82, 234n n n n n n n n
External Users: 8, 9, 10, 12, 65, 76, 78, 79, 80, 81, 83, 84, 85, 86, 88, 89
n n n n n n n n n n n n n n n n n
Data Analytics: 66, 67, 68, 69, 70, 235, 236
n n n n n n n n
Ethics in Financial Reporting: 71, 72, 73, 237, 255
n n n n n n n n
nThe Three Types of Business Activity: 97
n n n n n n
Financing Activities: 13, 15, 18, 90, 91, 93, 94, 95, 96, 97, 102, 109, 117, 118, 119, 238
n n n n n n n n n n n n n n n n n
Investing Activities: 14, 16, 98, 99, 115, 116
n n n n n n n
Operating Activities: 17, 19, 20, 100, 101, 103, 104, 105, 106, 107, 108, 110, 111, 112, 113,
n n n n n n n n n n n n n n n n
114
The Four Financial Statements:
n n n
Income Statement: 21, 22, 23, 24,127, 128, 132, 133, 134, 138, 142, 143
n n n n n n n n n n n n
Retained Earnings Statement: 120, 122, 123, 124, 125, 126, 129, 130, 131, 135, 137, 139, 140,
n n n n n n n n n n n n n n n
141, 144, 145, 146, 147, 148, 149, 150, 154, 164, 169, 178, 181, 252
n n n n n n n n n n n n n
Balance Sheet: 25, 27, 28, 29, 30, 31, 32, 33, 34, 35, 136, 151, 152, 153, 163, 165, 166, 168,
n n n n n n n n n n n n n n n n n n n
170, 173, 177, 179, 180, 182, 185, 186, 187, 188, 199, 200, 201, 207, 208, 213, 214, 215, 216,
n n n n n n n n n n n n n n n n n n
217, 218, 219, 220, 221, 222, 225, 229, 239, 240, 241, 253
n n n n n n n n n n n
Statement of Cash Flows: 26, 121, 171, 174, 183, 242, 249
n n n n n n n n n n
Interrelationships of Statements: 155, 156, 157, 158, 159, 160, 161, 162, 167, 175, 176, 184,
n n n n n n n n n n n n n n
250, 251, 256
n n
Elements of an Annual Report: 36, 41, 192, 196, 197
n n n n n n n n n
Management Discussion and Analysis: 40, 191 n n n n n
Notes to the Financial Statements: 37, 42, 190, 193, 194, 198, 254
n n n n n n n n n n n
Auditor‘s Report: 38, 39, 195 n n n n
Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use
n n n n n n n n n n
Only)
, A Further Look at Financial Statements
n n n n n 2-3
TRUE-FALSE STATEMENTS n
1. A business organized as a separate
n n n n n n legal entity n n and n owned n by
nstockholders is a partnership. n n n
Ans: n F, n LO: n 1, n Section: n Business n Organization nand n Accounting n Information nUses, n Subsection: n Partnership, n Bloom: n K, n Difficulty: n Easy, n Min: n 1,
n AACSB: n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
2. Corporate stockholders have no personal liability for the debts of the corporation.
n n n n n n n n n n n
Ans: nT, nLO: n1, n Section: nBusiness n Organization nand n Accounting n Information nUses, nSubsection: nCorporation, n Bloom: nK, n Difficulty: n Easy, n Min: n 1,
n AACSB: n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
3. The liability of corporate stockholders is limited to the amount of their investment.
n n n n n n n n n n n n
Ans: nT, nLO: n1, n Section: nBusiness n Organization nand n Accounting n Information nUses, nSubsection: nCorporation, n Bloom: nK, n Difficulty: n Easy, n Min: n 1,
n AACSB: n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
4. The majority of U.S. business is transacted by partnerships.
n n n n n n n n
Ans: n F, n LO: n 1, n Bloom: n K, n Section: n Business n Organization nand n Accounting n Information nUses, n Subsection: n Partnership, n Difficulty: n Easy, n Min: n 1,
n AACSB: n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
5. Sole proprietorships in the United States generate more revenue than the other two
n n n n n n n n n n n n
forms of business enterprise.
n n n n
Ans: n F, n LO: n 1, n Section: n Business n Organization n and n Accounting n Information n Uses, n Subsection: n Sole n Proprietorship, n Bloom: n K, n Difficulty:
n Easy, n Min: n 1, n AACSB: nKnowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
6. Owners of business firms are the only people who need accounting information.
n n n n n n n n n n n
Ans: n F, n LO: n 1, n Section: n Business n Organization n and n Accounting n Information n Uses, n Subsection: n Users n and n Uses n of n Financial
n Information, n Bloom: n K, n Difficulty: nEasy, nMin: n1, nAACSB: nKnowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone,
nIMA: nReporting nand nControl
7. Some users of accounting information are internal to the company while others
n n n n n n n n n n n
nare external.
n
Ans: n T, n LO: n 1, n Section: n Business n Organization n and n Accounting n Information n Uses, n Subsection: n Users n and n Uses n of n Financial
n Information, n Bloom: n K, n Difficulty: nEasy, nMin: n1, nAACSB: nKnowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone,
nIMA: nReporting nand nControl
8. Management of a business n n n n enterprise n is n the n major n external n user n of
naccounting information. n
Ans: nF, nLO: n1, nSection: nBusiness nOrganization nand nAccounting nInformation nUses, nSubsection: nExternal nUsers, nBloom: nK, nDifficulty: nEasy, nMin: n1, nAACSB:
n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
9. External users of accounting information include managers who plan, organize, and run a
n n n n n n n n n n n n
business.
n
Ans: nF, nLO: n1, nSection: nBusiness nOrganization nand nAccounting nInformation nUses, nSubsection: nExternal nUsers, nBloom: nK, nDifficulty: nEasy, nMin: n1, nAACSB:
n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
10. The accounting information needs and questions of external users vary considerably.
n n n n n n n n n n
Ans: nT, nLO: n1, nSection: nBusiness nOrganization nand nAccounting nInformation nUses, nSubsection: nExternal nUsers, nBloom: nK, nDifficulty: nEasy, nMin: n1, nAACSB:
n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
11. Accounting communicates financial information about a business to both internal
n n n n n n n n n
nand external users.
n n
Ans: n T, n LO: n 1, n Section: n Business n Organization n and n Accounting n Information n Uses, n Subsection: n Users n and n Uses n of n Financial
n Information, n Bloom: n K, n Difficulty: nEasy, nMin: n1, nAACSB: nKnowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone,
nIMA: nReporting nand nControl
12. Two primary external users of accounting information are investors and creditors.
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Ans: nT, nLO: n1, nSection: nBusiness nOrganization nand nAccounting nInformation nUses, nSubsection: nExternal nUsers, nBloom: nK, nDifficulty: nEasy, nMin: n1, nAACSB:
n Knowledge, nAICPA nBC: nNone, nAICPA nAC: nReporting, nAICPA nPC: nNone, nIMA: nReporting nand nControl
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, 2-4 Test Bank for Kimmel, Financial Accounting: Tools for Business Decision Making, 10e
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13. Financing activities for corporations include borrowing money and selling shares of their
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Copyright © 2022 John Wiley & Sons, Inc. (For Instructor Use
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Only)
