TEST BANK for Financial Accounting
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13th Edition
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by C William Thomas and Wendy M. Tietz
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Verified Chapter's 1 - 12 | Complete
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,TABLE OF CONTENTS v v v
1. The Financial Statements
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2. Transaction Analysis
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3. Accrual Accounting and Income
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4. Internal Control and Cash
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5. Receivables and Revenue
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6. Inventory and Cost of Goods Sold
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7. Plant Assets, Natural Resources, and Intangibles
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8. Current and Contingent Liabilities
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9. Long-Term Liabilities
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10. Stockholders' Equity
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11. The Statement of Cash Flows
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12. Financial Statement Analysis
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,1. The Financial Statements
v v v
Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
v v v v v v v v v v v v v
Financial Accounting, 13e (Thomas/Tietz)v v v
Chapter 1 The Financial Statements
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Learning Objective 1-1 v v
1) Accounting is an information system that measures business activities.
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Answer: TRUE
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Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
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AICPA Bus Persp: Legal/Regulatory
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AICPA Functional: Measurement
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2) Bookkeeping is a mechanical part of accounting.
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Answer: TRUE
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Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
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AICPA Bus Persp: Legal/Regulatory
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AICPA Functional: Measurement
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3) Accounting is often called the language of business.
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Answer: TRUE
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Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
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AICPA Bus Persp: Legal/Regulatory
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AICPA Functional: Measurement
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4) Accounting produces financial statements, which report information about a business.
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Answer: TRUE
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Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
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AICPA Bus Persp: Legal/Regulatory
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AICPA Functional: Measurement, Reporting
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5) The accounting process begins and ends with people making decisions.
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Answer: TRUE
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Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
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AICPA Bus Persp: Legal/Regulatory
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AICPA Functional: Measurement
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, 6) Accounting information is used by investors and creditors, but not by regulatory bodies.
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Answer: FALSE
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Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
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Diff: 1
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LO: 1-1
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AACSB: Reflective Thinking
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AICPA Bus Persp: Industry Sector, Legal/RegulatoryAICPA
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Functional: Measurement, Reporting
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7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
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accounting information.
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Answer: FALSE v
Diff: 1
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LO: 1-1
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AACSB: Reflective Thinking
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AICPA Bus Persp: Industry Sector, Legal/RegulatoryAICPA
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Functional: Measurement, Reporting
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8) The business records of a sole proprietorship should include the proprietor's personal finances.
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Answer: FALSE
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Diff: 1
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LO: 1-1
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AACSB: Reflective Thinking
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AICPA Bus Persp: Legal/Regulatory
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AICPA Functional: Measurement
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9) A partnership is a taxpaying entity.
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Answer: FALSE
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Diff: 1
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LO: 1-1
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AACSB: Reflective Thinking
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AICPA Bus Persp: Legal/Regulatory
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AICPA Functional: Measurement
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10) Stockholders have no personal obligation for the corporation's debts. v v v v v v v v
Answer: TRUE
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Diff: 1
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LO: 1-1
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AACSB: Reflective Thinking
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AICPA Bus Persp: Legal/Regulatory
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AICPA Functional: Measurement
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11) Accounting:
A) measures business activities. v v
B) processes data into reports and communicates the data to decision makers.
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C) is often called the language of business.
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D) is all of the above.
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Answer: D
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Diff: 2
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LO: 1-1
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v v v v
13th Edition
v
by C William Thomas and Wendy M. Tietz
v v v v v v v
Verified Chapter's 1 - 12 | Complete
v v v v v v
,TABLE OF CONTENTS v v v
1. The Financial Statements
v v v
2. Transaction Analysis
v v
3. Accrual Accounting and Income
v v v v
4. Internal Control and Cash
v v v v
5. Receivables and Revenue
v v v
6. Inventory and Cost of Goods Sold
v v v v v v
7. Plant Assets, Natural Resources, and Intangibles
v v v v v v
8. Current and Contingent Liabilities
v v v v
9. Long-Term Liabilities
v v
10. Stockholders' Equity
v v
11. The Statement of Cash Flows
v v v v v
12. Financial Statement Analysis
v v v
,1. The Financial Statements
v v v
Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
v v v v v v v v v v v v v
Financial Accounting, 13e (Thomas/Tietz)v v v
Chapter 1 The Financial Statements
v v v
Learning Objective 1-1 v v
1) Accounting is an information system that measures business activities.
v v v v v v v v
Answer: TRUE
v v
Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Legal/Regulatory
v v v
AICPA Functional: Measurement
v v v
2) Bookkeeping is a mechanical part of accounting.
v v v v v v
Answer: TRUE
v v
Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Legal/Regulatory
v v v
AICPA Functional: Measurement
v v v
3) Accounting is often called the language of business.
v v v v v v v
Answer: TRUE
v v
Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Legal/Regulatory
v v v
AICPA Functional: Measurement
v v v
4) Accounting produces financial statements, which report information about a business.
v v v v v v v v v
Answer: TRUE
v v
Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Legal/Regulatory
v v v
AICPA Functional: Measurement, Reporting
v v v
5) The accounting process begins and ends with people making decisions.
v v v v v v v v v
Answer: TRUE
v v
Diff: 1 v
LO: 1-1 v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Legal/Regulatory
v v v
AICPA Functional: Measurement
v v v
, 6) Accounting information is used by investors and creditors, but not by regulatory bodies.
v v v v v v v v v v v v
Answer: FALSE
v v
Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
v v v v v v v v v v v
Diff: 1
v
LO: 1-1
v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Industry Sector, Legal/RegulatoryAICPA
v v v v v v
Functional: Measurement, Reporting
v v v
7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to use
v v v v v v v v v v v v v v v v v
accounting information.
v v
Answer: FALSE v
Diff: 1
v
LO: 1-1
v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Industry Sector, Legal/RegulatoryAICPA
v v v v v v
Functional: Measurement, Reporting
v v v
8) The business records of a sole proprietorship should include the proprietor's personal finances.
v v v v v v v v v v v v
Answer: FALSE
v v
Diff: 1
v
LO: 1-1
v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Legal/Regulatory
v v v
AICPA Functional: Measurement
v v v
9) A partnership is a taxpaying entity.
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Answer: FALSE
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Diff: 1
v
LO: 1-1
v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Legal/Regulatory
v v v
AICPA Functional: Measurement
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10) Stockholders have no personal obligation for the corporation's debts. v v v v v v v v
Answer: TRUE
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Diff: 1
v
LO: 1-1
v
AACSB: Reflective Thinking
v v
AICPA Bus Persp: Legal/Regulatory
v v v
AICPA Functional: Measurement
v v v
11) Accounting:
A) measures business activities. v v
B) processes data into reports and communicates the data to decision makers.
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C) is often called the language of business.
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D) is all of the above.
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Answer: D
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Diff: 2
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LO: 1-1
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