Test Bank For Financial Accounting 16th Edition by Carl S. Warren, Christine Jonick, Jennifer Schneider||ISBN NO:10,1337913103||ISBN NO:13,978-1337913102||All Chapters||Complete Guide A+

TEST BANK %tk



Financial Accounting
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by Carl S. Warren, Christine Jonick, Jennifer Schneider 16th EDITION.
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FULL TEST BANK!!!
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,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 %tkethical %tkconduct %tkimplies %tkthat %tkyou %tkonly %tkconsider %tkwhat's %tkin %tkyour %tkbest %tkinterest.
a. True
b. False
ANSWER: False

8. Some %tkof %tkthe %tkmajor %tkfraudulent %tkacts %tkcommitted %tkby %tksenior %tkexecutives %tkstarted %tkas %tkwhat %tkthey %tkconsidered
%tkto %tkbe %tksmall %tkethical %tklapses %tkthat %tkgrew %tkout %tkof %tkcontrol.

a. True
b. False
ANSWER: True

9. A %tkbusiness %tkis %tkan %tkorganization %tkin %tkwhich %tkbasic %tkresources %tkor %tkinputs, %tksuch %tkas %tkmaterials %tkand
%tklabor, %tkare %tkassembled %tkand %tkprocessed %tkto %tkprovide %tkoutputs %tkin %tkthe %tkform %tkof %tkgoods %tkor %tkservices %tkto

%tkcustomers.

a. True
b. False
ANSWER: True

10. Two %tkfactors %tkthat %tktypically %tklead %tkto %tkethical %tkviolations %tkare %tkrelevance %tkand %tktimeliness %tkof %tkaccounting %tkinformation.
a. True
b. False
ANSWER: False

11. Financial %tkaccounting %tkreports %tkare %tkrelevant %tkonly %tkto %tkusers %tkwithin %tkthe %tkbusiness.
a. True
b. False
ANSWER: False

12. The %tkSarbanes-Oxley %tkAct %tkestablished %tkstandards %tkfor %tkcorporate %tkresponsibility %tkand %tkdisclosure.
a. True
b. False
ANSWER: True

13. The %tkmain %tkobjective %tkfor %tkall %tkbusiness %tkis %tkto %tkmaximize %tkunrealized %tkprofits.
a. True
b. False
ANSWER: False

14. The %tkprimary %tkrole %tkof %tkaccounting %tkis %tkto %tkdetermine %tkthe %tkamount %tkof %tktaxes %tka %tkbusiness %tkwill %tkbe
%tkrequired %tkto %tkpay %tkto %tktaxing %tkentities.

a. True
b. False
ANSWER: False

15. The %tkbasic %tkdifference %tkbetween %tkmanufacturing %tkand %tkmerchandising %tkcompanies %tkis %tkthe %tkcompletion %tklevel
%tkof %tkthe %tkproducts %tkthey %tkpurchase %tkfor %tkresale %tkto %tkcustomers.

a. True
b. False
ANSWER: True

, 16. An %tkexample %tkof %tkan %tkexternal %tkuser %tkof %tkaccounting %tkinformation %tkis %tkthe %tkfederal %tkgovernment.
a. True
b. False
ANSWER: True

17. Proprietorships %tkare %tkowned %tkby %tkone %tkowner %tkand %tkprovide %tkonly %tkservices %tkto %tktheir %tkcustomers.
a. True
b. False
ANSWER: False

18. About %tk90% %tkof %tkthe %tkbusinesses %tkin %tkthe %tkUnited %tkStates %tkare %tkorganized %tkas %tkcorporations.
a. True
b. False
ANSWER: False

19. The %tkFinancial %tkAccounting %tkStandards %tkBoard %tk(FASB) %tkis %tkthe %tkauthoritative %tkbody %tkthat %tkhas %tkprimary
%tkresponsibility %tkfor %tkdeveloping %tkaccounting %tkprinciples.

a. True
b. False
ANSWER: True

20. The %tkcost %tkconcept %tkis %tkthe %tkbasis %tkfor %tkentering %tkthe %tkpurchase %tkprice %tkinto %tkthe %tkaccounting %tkrecords.
a. True
b. False
ANSWER: True

21. The %tkunit %tkof %tkmeasurement %tkconcept %tkrequires %tkthat %tkeconomic %tkdata %tkbe %tkrecorded %tkin %tkdollars.
a. True
b. False
ANSWER: True

22. If %tka %tkbuilding %tkis %tkappraised %tkfor %tk$85,000, %tkit %tkis %tkoffered %tkfor %tksale %tkat %tk$90,000, %tkand %tkthe %tkbuyer %tkpays
%tk$80,000 %tkcash %tkfor %tkit, %tkthe %tkbuyer %tkwould %tkrecord %tkthe %tkbuilding %tkat %tk$85,000.

a. True
b. False
ANSWER: False

23. The %tkfinancial %tkstatements %tkof %tka %tkproprietorship %tkshould %tkinclude %tkthe %tkowner's %tkpersonal %tkassets %tkand %tkliabilities.
a. True
b. False
ANSWER: False

24. No %tksignificant %tkdifferences %tkexist %tkbetween %tkthe %tkaccounting %tkstandards %tkissued %tkby %tkthe %tkFASB %tkand %tkthe %tkIASB.
a. True
b. False
ANSWER: False

25. Generally %tkaccepted %tkaccounting %tkprinciples %tkregulate %tkhow %tkand %tkwhat %tkfinancial %tkinformation %tkis %tkreported %tkby
%tkbusinesses.