TESTBANKFOR n n
Horngren's Accounting, TheFinancialChapters,14th edition Nobles
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Chapter 1-17 n
1
Copyright © 2024 Pearson Education, Inc.
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,Horngren's Accounting: The Financial Chapters, 14e (Miller-Nobles)
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Chapter F:1 Accounting and the Business Environment
n n n n n
Learning Objective F:1-1 n n
1) Accounting is the information system that measures business activities, processes the information into
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reports, and communicates the results to decision makers.
n n n n n n n n
Answer: TRUE n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge
n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
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2) The knowledge of accounting is rarely used to help make business and personal financial decisions.
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Answer: FALSE
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Explanation: The knowledge of accounting is used daily to assist in making decisions for both businesses and
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personal items.
n n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge
n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
3) Accounting starts with economic activities that accountants review and evaluate using critical thinking
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and judgment to create useful information that helps individuals make good decisions.
n n n n n n n n n n n n
Answer: TRUE n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge
n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
4) Accounting is referred to as the language of business because it is the method of communicating
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business information to decision makers.
n n n n n
Answer: TRUE n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge
n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
2
Copyright © 2024 Pearson Education, Inc. n n n n n
, 3
Copyright © 2024 Pearson Education, Inc.
n n n n n
, 5) A model called the
n n n was created to help students and the public understand what accounting is.
n n n n n n n n n n n
A) Decision Making Model n n
B) Business Model n
C) Pathways Vision Model n n
D) Cost Model n
Answer: C
n n
Diff: 1
n n
LO: F:1-1
n n
AACSB: Application of knowledge n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
6) The Pathways Vision Model emphasizes that good decisions have an impact on
n n n n n n n n n n n .
A) accounting judgments and economic activity n n n n
B) accounting judgments only n n
C) economic activity only n n
D) neither accounting judgments nor economic activity
n n n n n
Answer: A
n n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
7) Managerial accounting focuses on providing information for external decision makers.
n n n n n n n n n
Answer: FALSE
n n
Explanation: Managerial accounting focuses on providing information for internal decision makers.
n n n n n n n n n n n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Decision Makers: The Users of Accounting Information
n n n n n n n n
8) Investors primarily use managerial accounting information for decision-making purposes.
n n n n n n n n
Answer: FALSE
n n
Explanation: External users (investors) use financial accounting information.
n n n n n n n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Decision Makers: The Users of Accounting Information
n n n n n n n n
4
Copyright © 2024 Pearson Education, Inc.
n n n n n
Horngren's Accounting, TheFinancialChapters,14th edition Nobles
n n n n n n n
Chapter 1-17 n
1
Copyright © 2024 Pearson Education, Inc.
n n n n n
,Horngren's Accounting: The Financial Chapters, 14e (Miller-Nobles)
n n n n n n
Chapter F:1 Accounting and the Business Environment
n n n n n
Learning Objective F:1-1 n n
1) Accounting is the information system that measures business activities, processes the information into
n n n n n n n n n n n n
reports, and communicates the results to decision makers.
n n n n n n n n
Answer: TRUE n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge
n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
2) The knowledge of accounting is rarely used to help make business and personal financial decisions.
n n n n n n n n n n n n n n
Answer: FALSE
n n
Explanation: The knowledge of accounting is used daily to assist in making decisions for both businesses and
n n n n n n n n n n n n n n n n
personal items.
n n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge
n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
3) Accounting starts with economic activities that accountants review and evaluate using critical thinking
n n n n n n n n n n n n
and judgment to create useful information that helps individuals make good decisions.
n n n n n n n n n n n n
Answer: TRUE n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge
n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
4) Accounting is referred to as the language of business because it is the method of communicating
n n n n n n n n n n n n n n n
business information to decision makers.
n n n n n
Answer: TRUE n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge
n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
2
Copyright © 2024 Pearson Education, Inc. n n n n n
, 3
Copyright © 2024 Pearson Education, Inc.
n n n n n
, 5) A model called the
n n n was created to help students and the public understand what accounting is.
n n n n n n n n n n n
A) Decision Making Model n n
B) Business Model n
C) Pathways Vision Model n n
D) Cost Model n
Answer: C
n n
Diff: 1
n n
LO: F:1-1
n n
AACSB: Application of knowledge n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
6) The Pathways Vision Model emphasizes that good decisions have an impact on
n n n n n n n n n n n .
A) accounting judgments and economic activity n n n n
B) accounting judgments only n n
C) economic activity only n n
D) neither accounting judgments nor economic activity
n n n n n
Answer: A
n n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Why is Accounting Important? (H1)
n n n n n n n
7) Managerial accounting focuses on providing information for external decision makers.
n n n n n n n n n
Answer: FALSE
n n
Explanation: Managerial accounting focuses on providing information for internal decision makers.
n n n n n n n n n n n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Decision Makers: The Users of Accounting Information
n n n n n n n n
8) Investors primarily use managerial accounting information for decision-making purposes.
n n n n n n n n
Answer: FALSE
n n
Explanation: External users (investors) use financial accounting information.
n n n n n n n
Diff: 1 n
LO: F:1-1
n n
AACSB: Application of knowledge n n n
AICPA Functional: Measurement
n n n
PE Question Type: Concept
n n n n
H2 : Decision Makers: The Users of Accounting Information
n n n n n n n n
4
Copyright © 2024 Pearson Education, Inc.
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