Test Bank For Financial Accounting 16th Edition by Warren| All Chapters Covered|| Verified Questions & Answers

Test Bank

Financial Accounting
By Warren


16th Edition




1|Page

, Chapter 1

True / False

1. A Merchandising Business Buys Products From Other Businesses To Sell To Customers.

a. True

b. False

Answer: True

Difficulty: Easy

Bloom's: Remembering

Learning Objectives: Acct.Ward.18.01-01 - 01-01 Accrediting

Standards: Acct.Acbsp.Apc.03 - Business FormsAcct.Aicpa.Bb.01 -

Industry

Acct.Aicpa.Fn.03 - Measurement Busprog: Analytic



2. The Role Of Accounting Is To Provide Many Different Users With Financial Information To Make
EconomicDecisions.

a. True

b. False

Answer: True

Difficulty: Moderate

Bloom's: Remembering

Learning Objectives: Acct.Ward.18.01-01 - 01-01

Accrediting Standards: Acct.Acbsp.Apc.01 - Purpose

Acct.Aicpa.Fn.03 - Measurement Busprog: Analytic



3. Accounting Information Users Need Reports About The Economic Activities And Condition Of
Businesses.

a. True

b. False
2|Page

,Answer: True

Difficulty: Easy

Bloom's: Remembering

Learning Objectives: Acct.Ward.18.01-01 - 01-01

Accrediting Standards: Acct.Acbsp.Apc.01 - Purpose

Acct.Aicpa.Bb.01 - Industry

Acct.Aicpa.Fn.03 - Measurement Busprog: Analytic



4. Managerial Accounting Information Is Used By External And Internal Users Equally.

a. True

b. False

Answer: False

Difficulty: Easy

Bloom's: Remembering

Learning Objectives: Acct.Ward.18.01-01 - 01-01

Accrediting Standards: Acct.Acbsp.Apc.01 - Purpose

Acct.Acbsp.Apc.25 - Managerial Characteristics/Terminology Acct.Aicpa.Fn.03 - Measurement
Busprog: Analytic



5. Senior Executives Cannot Be Criminally Prosecuted For The Wrongdoings They Commit On Behalf
Of TheCompanies Where They Work.

a. True

b. False

Answer: False

Difficulty: Easy

Bloom's: Understanding Learning Objectives: Acct.Ward.18.01-01 - 01-01
Accrediting Standards: Acct.Acbsp.Apc.01 - Purpose

Acct.Aicpa.Bb.03 - Legal
3|Page

, Acct.Aicpa.Fn.03 - Measurement Busprog: Ethics



6. Financial Accounting Provides Information To All Users, While The Main Focus For Managerial
AccountingIs To Provide Information To The Management.

a. True

b. False

Answer: True

Difficulty: Moderate

Bloom's: Remembering Learning Objectives: Acct.Ward.18.01-01 - 01-01
Accrediting Standards: Acct.Acbsp.Apc.01 - Purpose

Acct.Aicpa.Fn.03 - Measurement

Busprog: Analytic



7. Proper Ethical Conduct Implies That You Only Consider What's In Your Best Interest.

a. True

b. False

Answer: False

Difficulty: Easy

Bloom's: Remembering Learning Objectives: Acct.Ward.18.01-01 - 01-01
Accrediting Standards: Acct.Acbsp.Apc.02 - Gaap

Acct.Aicpa.Bb.03 - Legal

Acct.Aicpa.Fn.03 - Measurement Busprog: Ethics



8. Some Of The Major Fraudulent Acts Committed By Senior Executives Started As What They
Considered To BeSmall Ethical Lapses That Grew Out Of Control.

a. True

b. False

Answer: True

4|Page