Test Bank for College Accounting A Practical Approach 15th Canadian Edition Jeffrey Slater, Debra Good

College Accounting: A Practical Approach – 15th
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Canadian Edition
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TEST BANK
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Jeffrey Slater
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Debra Good
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Comprehensive Test Bank for Instructors and
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Students
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© Jeffrey Slater & Debra Good
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All rights reserved. Reproduction or distribution without permission is prohibited.




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, College Accounting, 15e (Slater)
Chapter 1 Accounting Concepts and Procedures
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Learning Objective 1-1

1) The type of business organization where the owners are NOT personally liable for the business’s debts
is a:
A) corporation
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B) partnership
C) sole proprietorship
D) All of the above
Answer: A
Diff: 2
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

2) The purpose of the accounting process is to provide financial information about:
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A) sole proprietorships
B) small businesses
C) large corporations
D) All of these answers are correct
Answer: D
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Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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3) Accounting provides information to:
A) investors
B) government
C) managers
D) All of these answers are correct
Answer: D
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Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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, 4) Which of the following is a characteristic of a sole proprietorship?
A) Business owned by more than one person.
B) Easy to form.
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C) Each stockholder acts as an owner of the company.
D) Can continue indefinitely.
Answer: B
Diff: 1
LO: 1-1
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AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

5) A partnership is a business which:
A) is easy to form
B) ends with the death of a partner
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C) is owned by more than one person
D) All of these answers are correct
Answer: D
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

6) Which is an advantage of a sole proprietorship form of business?
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A) There is limited personal risk.
B) The business can continue indefinitely.
C) The owner makes all the decisions.
D) The business is owned by stockholders.
Answer: C
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Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

7) Which of the following is NOT a type of business organization?
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A) Corporation
B) Partnership
C) Sole proprietorship
D) Limited Asset Corporation
Answer: D
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Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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, 8) A corporation:
A) is legally separate from its owners
B) is owned by stockholders
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C) has limited risk to stockholders
D) All of the above
Answer: D
Diff: 2
LO: 1-1
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AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

9) The basic accounting equation is:
A) Assets + Liabilities = Owner’s Equity
B) Assets = Liabilities - Owner's Equity
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C) Assets = Owner’s Equity - Liabilities
D) Assets = Liabilities + Owner's Equity
Answer: D
Diff: 1
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LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

10) A law firm would be considered a:
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A) merchandise company
B) manufacturer
C) service company
D) retailer
Answer: C
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Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles

11) GAAP stand for ______________________.
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A) Generally Accepted Accounting Practices
B) General Accounting Accepted Practices
C) Generally Accepted Accounting Principles
D) General Accounting Application Practices
Answer: C
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Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
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Copyright © 2023 Pearson Education, Inc.