TEST BANK FOR Financial Accounting Fundamentals, 8th Edition By John Wild All Chapter 1-13 Complete With Questions And Verified Solutions.

ByJohnWild,Chapter1- 13
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,Chapter1:AccountinginBusiness
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Chapter2:AccountingforBusinessTransactions Chapter3:AdjustingAccountsfor
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ss FinancialStatements Chapter4:AccountingforMerchandisingOperations Chapter
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5:InventoriesandCostofSales
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Chapter6:Cash, Fraud, andInternalControl
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Receivables Chapter8:AccountingforLong-TermAssets
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ss 9:AccountingforCurrentLiabilities
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Chapter10:AccountingforLong-TermLiabilities Chapter11:Corporate

ss ReportingandAnalysis Chapter12:ReportingCashFlows


Chapter13:AnalysisofFinancialStatements
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,Chapter1:AccountinginBusiness
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Student name:
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TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Accounting is an information and measurement system that identifies, records,
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andcommunicates anorganization'sbusiness activities.
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⊚ true

⊚ false
2) Accounting includes the analysis andinterpretation of information.
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⊚ true


⊚ false
3) Financial accounting focuses on the needs of external users, who get accounting
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informationfrom general-purpose financial statements.
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⊚ true


⊚ false
4) Internal users ofaccounting information do not directly manage the organization and
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havelimitedaccess to itsaccounting information.
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⊚ true

⊚ false
5) Auditorsverify the effectiveness of internal controls.
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⊚ true


⊚ false
6) External auditors examine financial statements to verifythat they are prepared
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according
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togenerallyacceptedaccountingprinciples.
⊚ true

⊚ false
7) External usersinclude lenders, shareholders, customers, andregulators.
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⊚ true


⊚ false

, 8) Internal users include lenders, shareholders, brokers and nonexecutive employees.
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⊚ true

⊚ false
9) Opportunities inaccounting include auditing, consulting, market research,
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⊚ true


⊚ false
10) The fraud triangleshows that three factors that push a person to commit fraud
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areopportunity, pressure,andrationalization.
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⊚ true


⊚ false
11) Internal controls are procedures to protect assets, ensure reliable accounting,
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sspromoteefficiency, andupholdcompanypolicies. fg s s




⊚ true

⊚ false
12) A partnership is a business owned by two or more people.
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⊚ true

⊚ false
13) Ownersofa corporation arecalledshareholders or stockholders.
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⊚ true

⊚ false
14) Ina partnership, the owners are called stockholders.
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⊚ true

⊚ false
15) The balance sheet shows a company's net income or loss over a period of time.
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⊚ true


⊚ false
16) The Financial Accounting Standards Board (FASB) is given the task of setting
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generally accepted accounting principles (GAAP) from the Securities and Exchange
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Commission.
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⊚
true