Test Bank Survey of Accounting, 10th Edition by Carl Warren, 2024 update with correct answers rationale

SURVEY OF ACCOUNTING 10TH EDITION




TEST BANK FOR
SU RVEY OF ACCOUNTING 10TH EDITION

BY CARL
WARREN,
AMANDA
FARMER LATEST
UPDATE

,SURVEY OF ACCOUNTING 10TH EDITION



Chap 01 10e Warren


Indicate Whether The Statement Is True Or
False.
1. The Popularity Of The Sole Proprietorship Is Due To The Ease And Low Cost Of Organizing.
a. True
b. False

AN SWERS: True


2. A Corporation Is A Business That Is Legally Separate And Distinct From Its Owners.
a. True
b. False

AN SWERS: True

3. Merchandising Businesses Produce Products Rather Than Provide Services To Customers.
a. True
b. False

AN SWERS: False

4. A Partnership Is Owned By Two Or More Individuals.
a. True
b. False

AN SWERS: True

5. A Limited Liability Company Combines Attributes Of A Partnership And A Corporation.
a. True
b. False

AN SWERS: True

6. The Ownership Of A Proprietorship Is Divided Into Shares Of Stock Owned By Its Stockholders’.
a. True
b. False

AN SWERS: False

7. Accounting Is Often Called The "Language Of Business" Because Business Information Is
Communicated To Stakeholders.
a. True
b. False

AN SWERS: True

,SURVEY OF ACCOUNTING 10TH EDITION




8. John Deere Is A Leading Manufacturer Of Agricultural Machinery In The World, Producing Products
That Serve Unique Market Needs. Therefore, John Deere Is An Example Of A Company That U ses A
Premium-Price Approach To Attract Customers.
a. True
b. False

AN SWERS: True

9. Creditors Have Preference To Assets Behind Stockholders’ If A Business Fails.
a. True
b. False

AN SWERS: False

10. A Liability Is A Legal Obligation To Repay The Amount Borrowed According To The Terms Of The Borrowing
Agreement.
a. True
b. False

AN SWERS: True

11. The Balance Sheet Represents The Accounting Equation.
a. True
b. False

AN SWERS: True

12. A Primary Disadvantage Of Corporations Is That The Financial Resources Available To Them Are Limited.
a. True
b. False

AN SWERS: False

13. Assets Are Acquired Through Investing Activities When Resources Are Purchased.
a. True
b. False

AN SWERS: True

14. The Objective Of Most Businesses Is To Maximize Profits.
a. True
b. False

AN SWERS: True

, SURVEY OF ACCOUNTING 10TH EDITION




15. The Stockholders’' Equity Of A Company Should Equal The Sum Of Its Total Assets And Total Liabilities.
a. True
b. False

AN SWERS: False

16. The Branch Of Accounting Related To The Management's Financial Decisions Is Known As Financial
Accounting.
a. True
b. False

AN SWERS: False

17. All Merchandising Businesses Are Organized As Corporations.
a. True
b. False

AN SWERS: False

18. Stockholders’ Of A Corporation Are Its Internal Stakeholders.
a. True
b. False

AN SWERS: False

19. The Basic Type Of Stock Issued To Owners Is Called Common Stock.
a. True
b. False

AN SWERS: True

20. A Business Stakeholder Has An Interest In The Economic Performance Of A Company.
a. True
b. False

AN SWERS: True

21. Manufacturing Businesses Change Basic Inputs Into Products That Are Sold To Individual Customers.
a. True
b. False

AN SWERS: True

22. Companies Using A Low-Cost Emphasis Provide Products And Services That Compete On Features Other
Than Price.
a. True
b. False

AN SWERS: False