Test Bank For
m m
Fundamental Accounting Principles, 25th Edition, John Wild
m m m m m m
Chapter 1-26 Answers at the End of Each Chapter
m m m m m m m m m
Chapter 01:
m
Student name:
m
1) Which mof mthe mfollowing mis mnot maccomplished mby maccounting?
A) Identifies mbusiness mactivities.
B) Records mbusiness mactivities.
C) Communicates mbusiness mactivities.
D) Eliminates mthe mneed mfor minterpreting mfinancial mdata.
E) Helps mpeople mmake mbetter mdecisions.
2) Which mof mthe mfollowing mis man mexternal muser mof maccounting minformation?
A) Purchasing mmanager.
B) Human mresource mmanager.
C) Lender.
D) Chief mexecutive mofficer m(CEO).
E) Marketing mmanager.
3) The mprimary mobjective mof mfinancial maccounting mis mto:
A) Serve mthe mdecision-making mneeds mof minternal musers.
B) Provide maccounting minformation mthat mserves mexternal musers.
C) Monitor mconsumer mneeds, mtastes, mand mprice mconcerns.
D) Provide minformation mon mboth mthe mcosts mand mbenefits mof mlooking mafter mproducts
mand mservices.
E) Know mwhat, mwhen, mand mhow mmuch mproduct mto mproduce.
,4) The marea mof maccounting maimed mat mserving mthe mdecision-making mneeds mof minternal musers mis:
A) Financial maccounting.
B) Managerial maccounting.
C) External mauditing.
D) SEC mreporting.
E) Bookkeeping.
5) Which mof mthe mfollowing mis m m not man mexternal muser mof maccounting minformation?
A) Shareholders.
B) Customers.
C) Purchasing mmanagers.
D) Government mregulators.
E) Creditors.
6) Which mof mthe mfollowing mis mnot mtrue mregarding ma mCertified mPublic mAccountant?
A) Must mmeet meducation mrequirements.
B) Must mpass man mexamination.
C) Must mexhibit methical mcharacter.
D) Must mmeet mexperience mrequirements.
E) Cannot mhold many mcertificate mother mthan ma mCPA.
7) Which mof mthe mfollowing mfactors mis mnot ma mcomponent mof mthe mfraud mtriangle?
, A) Opportunity
B) Pressure
C) Rationalization
D) All mof mthe mabove mare mcomponents mof mthe mfraud mtriangle.
8) Which mof mthe mfollowing mis mnot mtrue mregarding methics:
A) Ethics mare mbeliefs mthat mseparate mright mfrom mwrong.
B) Good methics mare mgood mbusiness.
C) Ethics mdo mnot maffect mthe moperations mor moutcome mof ma mcompany.
D) Accountants mface methical mchoices mas mthey mprepare mfinancial mreports.
E) Ethics mare maccepted mstandards mof mgood mand mbad mbehavior.
9) A mcorporation mis:
A) A mbusiness mlegally mseparate mfrom mits mowners.
B) Controlled mby mthe mFASB.
C) Not mresponsible mfor mits mown macts mand mown mdebts.
D) The msame mas ma mlimited mliability mpartnership.
E) Not msubject mto mdouble mtaxation.
10) The mgroup mthat msets minternational mpreferred maccounting mpractices mis mcalled mthe:
A) AICPA.
B) IASB.
C) CAP.
D) SEC.
E) FASB.
, 11) The mSecurities mand mExchange mCommission m(SEC) mhas mgiven mthe mtask mof msetting
mGAAP mto mthe:
A) APB.
B) FASB.
C) AAA.
D) AICPA.
E) IASB.
12) The maccounting mconcept mthat mrequires mevery mbusiness mto mbe maccounted mfor mseparately
mfrom mother mbusiness mentities, mincluding mits mowner mor mowners mis mknown mas mthe:
A) Time-period massumption.
B) Business mentity massumption.
C) Going-concern massumption.
D) Revenue mrecognition mprinciple.
E) Measurement m(Cost) mprinciple.
13) The mrule mthat mrequires mfinancial mstatements mto massume mthat mthe mbusiness mwill
mcontinue moperating minstead mof mbeing mclosed mor msold mis mthe:
A) Going-concern massumption.
B) Business mentity massumption.
C) Objectivity mprinciple.
D) Measurement m(Cost) mprinciple.
E) Monetary munit massumption.
14) If ma mcompany mis mconsidering mthe mpurchase mof ma mparcel mof mland mthat mwas moriginally
macquired mby mthe mseller mfor m$100,000, mis mcurrently moffered mfor msale mat m$180,000, mis
mconsidered mby mthe mpurchaser mas measily mbeing mworth m$170,000, mand mis mfinally mpurchased mfor
m$167,000, mthe mland mshould mbe mrecorded min mthe mpurchaser’s mbooks mat:
m m
Fundamental Accounting Principles, 25th Edition, John Wild
m m m m m m
Chapter 1-26 Answers at the End of Each Chapter
m m m m m m m m m
Chapter 01:
m
Student name:
m
1) Which mof mthe mfollowing mis mnot maccomplished mby maccounting?
A) Identifies mbusiness mactivities.
B) Records mbusiness mactivities.
C) Communicates mbusiness mactivities.
D) Eliminates mthe mneed mfor minterpreting mfinancial mdata.
E) Helps mpeople mmake mbetter mdecisions.
2) Which mof mthe mfollowing mis man mexternal muser mof maccounting minformation?
A) Purchasing mmanager.
B) Human mresource mmanager.
C) Lender.
D) Chief mexecutive mofficer m(CEO).
E) Marketing mmanager.
3) The mprimary mobjective mof mfinancial maccounting mis mto:
A) Serve mthe mdecision-making mneeds mof minternal musers.
B) Provide maccounting minformation mthat mserves mexternal musers.
C) Monitor mconsumer mneeds, mtastes, mand mprice mconcerns.
D) Provide minformation mon mboth mthe mcosts mand mbenefits mof mlooking mafter mproducts
mand mservices.
E) Know mwhat, mwhen, mand mhow mmuch mproduct mto mproduce.
,4) The marea mof maccounting maimed mat mserving mthe mdecision-making mneeds mof minternal musers mis:
A) Financial maccounting.
B) Managerial maccounting.
C) External mauditing.
D) SEC mreporting.
E) Bookkeeping.
5) Which mof mthe mfollowing mis m m not man mexternal muser mof maccounting minformation?
A) Shareholders.
B) Customers.
C) Purchasing mmanagers.
D) Government mregulators.
E) Creditors.
6) Which mof mthe mfollowing mis mnot mtrue mregarding ma mCertified mPublic mAccountant?
A) Must mmeet meducation mrequirements.
B) Must mpass man mexamination.
C) Must mexhibit methical mcharacter.
D) Must mmeet mexperience mrequirements.
E) Cannot mhold many mcertificate mother mthan ma mCPA.
7) Which mof mthe mfollowing mfactors mis mnot ma mcomponent mof mthe mfraud mtriangle?
, A) Opportunity
B) Pressure
C) Rationalization
D) All mof mthe mabove mare mcomponents mof mthe mfraud mtriangle.
8) Which mof mthe mfollowing mis mnot mtrue mregarding methics:
A) Ethics mare mbeliefs mthat mseparate mright mfrom mwrong.
B) Good methics mare mgood mbusiness.
C) Ethics mdo mnot maffect mthe moperations mor moutcome mof ma mcompany.
D) Accountants mface methical mchoices mas mthey mprepare mfinancial mreports.
E) Ethics mare maccepted mstandards mof mgood mand mbad mbehavior.
9) A mcorporation mis:
A) A mbusiness mlegally mseparate mfrom mits mowners.
B) Controlled mby mthe mFASB.
C) Not mresponsible mfor mits mown macts mand mown mdebts.
D) The msame mas ma mlimited mliability mpartnership.
E) Not msubject mto mdouble mtaxation.
10) The mgroup mthat msets minternational mpreferred maccounting mpractices mis mcalled mthe:
A) AICPA.
B) IASB.
C) CAP.
D) SEC.
E) FASB.
, 11) The mSecurities mand mExchange mCommission m(SEC) mhas mgiven mthe mtask mof msetting
mGAAP mto mthe:
A) APB.
B) FASB.
C) AAA.
D) AICPA.
E) IASB.
12) The maccounting mconcept mthat mrequires mevery mbusiness mto mbe maccounted mfor mseparately
mfrom mother mbusiness mentities, mincluding mits mowner mor mowners mis mknown mas mthe:
A) Time-period massumption.
B) Business mentity massumption.
C) Going-concern massumption.
D) Revenue mrecognition mprinciple.
E) Measurement m(Cost) mprinciple.
13) The mrule mthat mrequires mfinancial mstatements mto massume mthat mthe mbusiness mwill
mcontinue moperating minstead mof mbeing mclosed mor msold mis mthe:
A) Going-concern massumption.
B) Business mentity massumption.
C) Objectivity mprinciple.
D) Measurement m(Cost) mprinciple.
E) Monetary munit massumption.
14) If ma mcompany mis mconsidering mthe mpurchase mof ma mparcel mof mland mthat mwas moriginally
macquired mby mthe mseller mfor m$100,000, mis mcurrently moffered mfor msale mat m$180,000, mis
mconsidered mby mthe mpurchaser mas measily mbeing mworth m$170,000, mand mis mfinally mpurchased mfor
m$167,000, mthe mland mshould mbe mrecorded min mthe mpurchaser’s mbooks mat:
