TESTBANK
t
FinancialAccountingFundamentals,8thEdition
t t t t
ByJohnWild,Chapter1-13
t t t t t t
,Chaptert1:tAccountingtintBusiness
Chaptert2:tAccountingtfortBusinesstTransactions t Chaptert3:tAdjustingtAccountstfor
FinancialtStatements t Chaptert4:tAccountingtfortMerchandisingtOperations t Chapter t5:
t
Inventoriesta ndtCosttoftSales
t
Chaptert6:tCash,tFraud,tandtInternaltControl t Chaptert7:tAccountingtfor
Receivables t Chaptert8:tAccountingtfortLong-TermtAssets t Chaptert9:
t
AccountingtfortCurrenttLiabilities
t
Chaptert10:tAccountingtfortLong-TermtLiabilities t Chaptert11:tCorporatetReporting
andtAnalysis t Chaptert12:tReportingtCashtFlows
t
Chaptert13:tAnalysistoftFinancialtStatements
, Answers tare tat tthe tEnd tof tEach tChapter
Chaptert1:tAccountingtintBusiness
Student tname: t
TRUE/FALSE t- tWrite t'T' tif tthe tstatement tis ttrue tand t'F' tif tthe tstatement tis tfalse.
1) Accounting tis tan tinformation tand tmeasurement tsystem tthat tidentifies, trecords,
t andcommunicates tan torganization's tbusiness tactivities.
⊚ t t t true
⊚ t t tfalse
2) Accounting tincludes tthe tanalysis tand tinterpretation tof tinformation.
⊚ t t t true
⊚ t t tfalse
3) Financial taccounting tfocuses ton tt he tneeds tof texternal tusers, twho tget taccounting
informationfrom t general-purpose t financial t tstatements.
⊚ t t t true
⊚ t t tfalse
4) Internal tusers tof taccounting tinformation tdo tnot tdirectly tmanage tthe torganization tand
havelimited taccess tto tits taccounting tinformation.
⊚ t t t true
⊚ t t tfalse
5) Auditors tverify tthe teffectiveness tof tinternal tcontrols.
⊚ t t t true
⊚ t t tfalse
6) External tauditors texamine tfinancial tstatements tto tverify tthat tthey tare tprepared taccording
togenerallytacceptedtaccountingtprinciples.
⊚ t t t true
⊚ t t tfalse
7) External tusers tinclude tlenders, tshareholders, tcustomers, tand tregulators.
⊚ t t t true
⊚ t t tfalse
, 8) Internal tusers tinclude tlenders, tshareholders, tbrokers tand tnonexecutive temployees.
⊚ t t t true
⊚ t t tfalse
9) Opportunities tin taccounting tinclude tauditing, tconsulting, tmarket tresearch, tand ttax tplanning.
⊚ t t t true
⊚ t t tfalse
10) The tfraud ttriangle tshows tthat tthree tfactors tthat tpush ta tperson tto tcommit tfraud
areopportunity,tpressure,tandtrationalization.
⊚ t t t true
⊚ t t tfalse
11) Internal tcontrols tare tprocedures tto tprotect tassets, tensure treliable taccounting,
promoteefficiency,tand tupholdtcompany tpolicies.
⊚ t t t true
⊚ t t tfalse
12) A tpartnership tis ta tbusiness towned tby ttwo tor tmore tpeople.
⊚ t t t true
⊚ t t tfalse
13) Owners tof ta tcorporation tare tcalled tshareholders tor tstockholders.
⊚ t t t true
⊚ t t tfalse
14) In ta tpartnership, tthe towners tare tcalled tstockholders.
⊚ t t t true
⊚ t t tfalse
15) The tbalance tsheet tshows ta tcompany's tnet tincome tor tloss tover ta tperiod tof ttime.
⊚ t t t true
⊚ t t tfalse
16) The tFinancial tAccounting tStandards tBoard t(FASB) tis tgiven tthe ttask tof tsetting tgenerally
accepted taccounting tprinciples t(GAAP) tfrom tthe tSecurities tand tExchange tCommission.
⊚tt
t true
⊚tt
t false
t
FinancialAccountingFundamentals,8thEdition
t t t t
ByJohnWild,Chapter1-13
t t t t t t
,Chaptert1:tAccountingtintBusiness
Chaptert2:tAccountingtfortBusinesstTransactions t Chaptert3:tAdjustingtAccountstfor
FinancialtStatements t Chaptert4:tAccountingtfortMerchandisingtOperations t Chapter t5:
t
Inventoriesta ndtCosttoftSales
t
Chaptert6:tCash,tFraud,tandtInternaltControl t Chaptert7:tAccountingtfor
Receivables t Chaptert8:tAccountingtfortLong-TermtAssets t Chaptert9:
t
AccountingtfortCurrenttLiabilities
t
Chaptert10:tAccountingtfortLong-TermtLiabilities t Chaptert11:tCorporatetReporting
andtAnalysis t Chaptert12:tReportingtCashtFlows
t
Chaptert13:tAnalysistoftFinancialtStatements
, Answers tare tat tthe tEnd tof tEach tChapter
Chaptert1:tAccountingtintBusiness
Student tname: t
TRUE/FALSE t- tWrite t'T' tif tthe tstatement tis ttrue tand t'F' tif tthe tstatement tis tfalse.
1) Accounting tis tan tinformation tand tmeasurement tsystem tthat tidentifies, trecords,
t andcommunicates tan torganization's tbusiness tactivities.
⊚ t t t true
⊚ t t tfalse
2) Accounting tincludes tthe tanalysis tand tinterpretation tof tinformation.
⊚ t t t true
⊚ t t tfalse
3) Financial taccounting tfocuses ton tt he tneeds tof texternal tusers, twho tget taccounting
informationfrom t general-purpose t financial t tstatements.
⊚ t t t true
⊚ t t tfalse
4) Internal tusers tof taccounting tinformation tdo tnot tdirectly tmanage tthe torganization tand
havelimited taccess tto tits taccounting tinformation.
⊚ t t t true
⊚ t t tfalse
5) Auditors tverify tthe teffectiveness tof tinternal tcontrols.
⊚ t t t true
⊚ t t tfalse
6) External tauditors texamine tfinancial tstatements tto tverify tthat tthey tare tprepared taccording
togenerallytacceptedtaccountingtprinciples.
⊚ t t t true
⊚ t t tfalse
7) External tusers tinclude tlenders, tshareholders, tcustomers, tand tregulators.
⊚ t t t true
⊚ t t tfalse
, 8) Internal tusers tinclude tlenders, tshareholders, tbrokers tand tnonexecutive temployees.
⊚ t t t true
⊚ t t tfalse
9) Opportunities tin taccounting tinclude tauditing, tconsulting, tmarket tresearch, tand ttax tplanning.
⊚ t t t true
⊚ t t tfalse
10) The tfraud ttriangle tshows tthat tthree tfactors tthat tpush ta tperson tto tcommit tfraud
areopportunity,tpressure,tandtrationalization.
⊚ t t t true
⊚ t t tfalse
11) Internal tcontrols tare tprocedures tto tprotect tassets, tensure treliable taccounting,
promoteefficiency,tand tupholdtcompany tpolicies.
⊚ t t t true
⊚ t t tfalse
12) A tpartnership tis ta tbusiness towned tby ttwo tor tmore tpeople.
⊚ t t t true
⊚ t t tfalse
13) Owners tof ta tcorporation tare tcalled tshareholders tor tstockholders.
⊚ t t t true
⊚ t t tfalse
14) In ta tpartnership, tthe towners tare tcalled tstockholders.
⊚ t t t true
⊚ t t tfalse
15) The tbalance tsheet tshows ta tcompany's tnet tincome tor tloss tover ta tperiod tof ttime.
⊚ t t t true
⊚ t t tfalse
16) The tFinancial tAccounting tStandards tBoard t(FASB) tis tgiven tthe ttask tof tsetting tgenerally
accepted taccounting tprinciples t(GAAP) tfrom tthe tSecurities tand tExchange tCommission.
⊚tt
t true
⊚tt
t false
