TEST BANK #d
Financial Accounting
#d
by Carl S. Warren, Christine Jonick, Jennifer Schneider 16th EDEITION.
#d #d #d #d #d #d #d
FULL TEST BANK!!!
#d #d
,True / False Answers
1. A merchandising business buys products from other businesses to sell to customers.
a. True
b. False
ANSWER: True
2. The role of accounting is to provide many different users with financial information to make economic decisions.
a. True
b. False
ANSWER: True
3. Accounting information users need reports about the economic activities and condition of businesses.
a. True
b. False
ANSWER: True
4. Managerial accounting information is used by external and internal users equally.
a. True
b. False
ANSWER: False
5. Senior executives cannot be criminally prosecuted for the wrongdoings they commit on behalf of the companies where
they work.
a. True
b. False
ANSWER: False
6. Financial accounting provides information to all users, while the main focus for managerial accounting is to provide
information to the management.
a. True
b. False
ANSWER: True
,7. Proper ethical conduct implies that you only consider what's in your best interest.
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a. True
b. False
ANSWER: False
8. Some of the major fraudulent acts committed by senior executives started as what they considered to be small
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ethical lapses that grew out of control.
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a. True
b. False
ANSWER: True
9. A business is an organization in which basic resources or inputs, such as materials and labor, are assembled
#d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d
and processed to provide outputs in the form of goods or services to customers.
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a. True
b. False
ANSWER: True
10. Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.
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a. True
b. False
ANSWER: False
11. Financial accounting reports are relevant only to users within the business.
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a. True
b. False
ANSWER: False
12. The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.
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a. True
b. False
ANSWER: True
13. The main objective for all business is to maximize unrealized profits.
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a. True
b. False
ANSWER: False
14. The primary role of accounting is to determine the amount of taxes a business will be required to pay to
#d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d
taxing entities.
#d #d
a. True
b. False
ANSWER: False
15. The basic difference between manufacturing and merchandising companies is the completion level of the
#d #d #d #d #d #d #d #d #d #d #d #d #d
products they purchase for resale to customers.
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a. True
b. False
ANSWER: True
, 16. An example of an external user of accounting information is the federal government.
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a. True
b. False
ANSWER: True
17. Proprietorships are owned by one owner and provide only services to their customers.
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a. True
b. False
ANSWER: False
18. About 90% of the businesses in the United States are organized as corporations.
#d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
19. The Financial Accounting Standards Board (FASB) is the authoritative body that has primary responsibility
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for developing accounting principles.
#d #d #d #d
a. True
b. False
ANSWER: True
20. The cost concept is the basis for entering the purchase price into the accounting records.
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a. True
b. False
ANSWER: True
21. The unit of measurement concept requires that economic data be recorded in dollars.
#d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: True
22. If a building is appraised for $85,000, it is offered for sale at $90,000, and the buyer pays $80,000 cash for it,
#d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d
the buyer would record the building at $85,000.
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a. True
b. False
ANSWER: False
23. The financial statements of a proprietorship should include the owner's personal assets and liabilities.
#d #d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
24. No significant differences exist between the accounting standards issued by the FASB and the IASB.
#d #d #d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
25. Generally accepted accounting principles regulate how and what financial information is reported by businesses.
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Financial Accounting
#d
by Carl S. Warren, Christine Jonick, Jennifer Schneider 16th EDEITION.
#d #d #d #d #d #d #d
FULL TEST BANK!!!
#d #d
,True / False Answers
1. A merchandising business buys products from other businesses to sell to customers.
a. True
b. False
ANSWER: True
2. The role of accounting is to provide many different users with financial information to make economic decisions.
a. True
b. False
ANSWER: True
3. Accounting information users need reports about the economic activities and condition of businesses.
a. True
b. False
ANSWER: True
4. Managerial accounting information is used by external and internal users equally.
a. True
b. False
ANSWER: False
5. Senior executives cannot be criminally prosecuted for the wrongdoings they commit on behalf of the companies where
they work.
a. True
b. False
ANSWER: False
6. Financial accounting provides information to all users, while the main focus for managerial accounting is to provide
information to the management.
a. True
b. False
ANSWER: True
,7. Proper ethical conduct implies that you only consider what's in your best interest.
#d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
8. Some of the major fraudulent acts committed by senior executives started as what they considered to be small
#d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d
ethical lapses that grew out of control.
#d #d #d #d #d #d #d
a. True
b. False
ANSWER: True
9. A business is an organization in which basic resources or inputs, such as materials and labor, are assembled
#d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d
and processed to provide outputs in the form of goods or services to customers.
#d #d #d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: True
10. Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.
#d #d #d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
11. Financial accounting reports are relevant only to users within the business.
#d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
12. The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.
#d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: True
13. The main objective for all business is to maximize unrealized profits.
#d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
14. The primary role of accounting is to determine the amount of taxes a business will be required to pay to
#d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d
taxing entities.
#d #d
a. True
b. False
ANSWER: False
15. The basic difference between manufacturing and merchandising companies is the completion level of the
#d #d #d #d #d #d #d #d #d #d #d #d #d
products they purchase for resale to customers.
#d #d #d #d #d #d #d
a. True
b. False
ANSWER: True
, 16. An example of an external user of accounting information is the federal government.
#d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: True
17. Proprietorships are owned by one owner and provide only services to their customers.
#d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
18. About 90% of the businesses in the United States are organized as corporations.
#d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
19. The Financial Accounting Standards Board (FASB) is the authoritative body that has primary responsibility
#d #d #d #d #d #d #d #d #d #d #d #d #d
for developing accounting principles.
#d #d #d #d
a. True
b. False
ANSWER: True
20. The cost concept is the basis for entering the purchase price into the accounting records.
#d #d #d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: True
21. The unit of measurement concept requires that economic data be recorded in dollars.
#d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: True
22. If a building is appraised for $85,000, it is offered for sale at $90,000, and the buyer pays $80,000 cash for it,
#d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d #d
the buyer would record the building at $85,000.
#d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
23. The financial statements of a proprietorship should include the owner's personal assets and liabilities.
#d #d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
24. No significant differences exist between the accounting standards issued by the FASB and the IASB.
#d #d #d #d #d #d #d #d #d #d #d #d #d #d
a. True
b. False
ANSWER: False
25. Generally accepted accounting principles regulate how and what financial information is reported by businesses.
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