Test Bank for College Accounting, A Practical Approach, 15th Edition by Slater, All Chapters 1-25.pdf

College;.Accounting,;.15e;.(Slater)
Chapter;.1 Accounting;.Concepts;.and;.Procedures

Learning;.Objective;.1-1

1) The;.type;.of;.business;.organization;.where;.the;.owners;.are;.NOT;.personally;.liable;.for;.the;.business’s;.d
ebts
is;.a:
A) corporation
B) partnership
C) sole;.proprietorship
D) All;.of;.the;.abov
e;.Answer:; . A
Diff:;.2
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

2) The;.purpose;.of;.the;.accounting;.process;.is;.to;.provide;.financial;.information;.about:
A) sole;.proprietorships
B) small;.businesses
C) large;.corporations
D) All;.of;.these;.answers;.are;.corre
ct;.Answer:; . D
Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

3) Accounting;.provides;.information;.to:
A) investors
B) government
C) managers
D) All;.of;.these;.answers;.are;.corre
ct;.Answer:; . D
Diff:;.2
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles




1
Copyright;.©;.2023;.Pearson;.Education,;.In
c.
mynursytest.store

,4) Which;.of;.the;.following;.is;.a;.characteristic;.of;.a;.sole;.proprietorship?
A) Business;.owned;.by;.more;.than;.one;.person.
B) Easy;.to;.form.
C) Each;.stockholder;.acts;.as;.an;.owner;.of;.the;.company.
D) Can;.continue;.indefinitely
.;.Answer:; . B
Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

5) A;.partnership;.is;.a;.business;.which:
A) is;.easy;.to;.form
B) ends;.with;.the;.death;.of;.a;.partner
C) is;.owned;.by;.more;.than;.one;.person
D) All;.of;.these;.answers;.are;.corre
ct;.Answer:; . D
Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

6) Which;.is;.an;.advantage;.of;.a;.sole;.proprietorship;.form;.of;.business?
A) There;.is;.limited;.personal;.risk.
B) The;.business;.can;.continue;.indefinitely.
C) The;.owner;.makes;.all;.the;.decisions.
D) The;.business;.is;.owned;.by;.stockholder
s.;.Answer:; . C
Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

7) Which;.of;.the;.following;.is;.NOT;.a;.type;.of;.business;.organization?
A) Corporation
B) Partnership
C) Sole;.proprietorship
D) Limited;.Asset;.Corporation
;.Answer:; . D
Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles




2
Copyright;.©;.2023;.Pearson;.Education,;.In
c.
mynursytest.store

,8) A;.corporation:
A) is;.legally;.separate;.from;.its;.owners
B) is;.owned;.by;.stockholders
C) has;.limited;.risk;.to;.stockholders
D) All;.of;.the;.abov
e;.Answer:; . D
Diff:;.2
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

9) The;.basic;.accounting;.equation;.is:
A) Assets;.+;.Liabilities;.=;.Owner’s;.Equity
B) Assets;.=;.Liabilities;.-;.Owner's;.Equity
C) Assets;.=;.Owner’s;.Equity;.-;.Liabilities
D) Assets;.=;.Liabilities;.+;.Owner's;.Equit
y;.Answer:; . D
Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

10) A;.law;.firm;.would;.be;.considered;.a:
A) merchandise;.company
B) manufacturer
C) service;.company
D) retailer;.
Answer:; .
C;.Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

11) GAAP;.stand;.for;. .
A) Generally;.Accepted;.Accounting;.Practices
B) General;.Accounting;.Accepted;.Practices
C) Generally;.Accepted;.Accounting;.Principles
D) General;.Accounting;.Application;.Practice
s;.Answer:; . C
Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles




3
Copyright;.©;.2023;.Pearson;.Education,;.In
c.
mynursytest.store

, 12) The;.purchase;.of;.supplies;.for;.cash;.would;.affect;.which;.account;.category?
A) Assets
B) Liabilities
C) Capital
D) Expense;.
Answer:; .
A;.Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Analyze;.and;.record;.transactions;.and;.their;.effects;.on;.the;.financial;.statements

13) Items;.owned;.by;.the;.business;.such;.as;.land,;.supplies;.and;.equipment;.are:
A) Assets
B) Liabilities
C) Owner's;.Equity
D) Expenses
;.Answer:;.A;
.Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

14) Which;.of;.the;.following;.is;.NOT;.an;.Asset?
A) Cash
B) Accounts;.Receivable
C) Buildings
D) All;.of;.the;.above;.are;.Asset
s;.Answer:; . D
Diff:;.1
LO:; . ; . 1-1
AACSB:; . ; . Reflective;.Thinking
Learning;.Outcome:; . ; . Define;.accounting;.terms,;.accounting;.concepts;.and;.principles

15) If;.total;.liabilities;.increased;.by;.$10,000;.and;.the;.assets;.increased;.by;.$10,000;.during;.the;.accoun
ting;.period,;.what;.is;.the;.change;.in;.the;.owner's;.equity;.amount?
A) No;.effect;.on;.owner's;.equity
B) Decrease;.of;.$10,000
C) Increase;.of;.$20,000
D) Decrease;.of;.$40,00
0;.Answer:; . A
Diff:;.2
LO:; . ; . 1-1
AACSB:; . ; . Analytical;.Thinking
Learning;.Outcome:; . ; . Analyze;.and;.record;.transactions;.and;.their;.effects;.on;.the;.financial;.statements




4
Copyright;.©;.2023;.Pearson;.Education,;.In
c.
mynursytest.store