Accounting: What the Numbers Mean (12th Edition) by David Marshall – Complete Test Bank with Answers

,Accountingww-
wwWhatwwthewwNumberswwMean,ww12eww(Marshall)wwChapterww1w

w Accounting—PresentwwandwwPast



1) Whichwwofwwthewwfollowingwwentitieswwwouldwwnotwwrequirewwaccountingwwinformationwwpertain
ingwwtowwtheirwweconomicwwactivities?
A) Socialwwclubs.
B) Not-for-profitwwentities.
C) Statewwgovernments.
D) Allwwofwwthesewwentitieswwrequirewwaccountingwwinformation.

Answer:w w DwwDiffic
ulty:ww1wwEasy
Topic:w w WhatwwIswwAccounting?
LearningwwObjective:w w 01-
02wwIdentifywwwhowwthewwuserswwofwwaccountingwwinformationwwarewwandwwexplainwwwhywwtheywwfi
ndwwaccountingwwinformationwwuseful.
Bloom's:w w Rememberw w AAC
SB:w w AnalyticalwwThinking
Accessibility:w w KeyboardwwNavigation

2) Thewwauthoritativewwfinancialwwaccountingwwstandards-
settingwwbodywwinwwthewwUnitedwwStateswwiswwpresentlywwthe:
A) SecuritieswwandwwExchangewwCommissionww(SEC)
B) InternationalwwAccountingwwStandardswwBoardww(IASB)
C) PublicwwCompanywwAccountingwwOversightswwBoardww(PCAOB)
D) FinancialwwAccountingwwStandardswwBoardww(FASB)
E) AccountingwwPrincipleswwBoardww(APB)

Answer:w w DwwDiffic
ulty:ww1wwEasy
Topic:w w HowwwHaswwAccountingwwDeveloped?
LearningwwObjective:w w 01-
05wwExplainwwthewwrolewwthatwwthewwFASBwwplayswwinwwthewwdevelopmentwwofwwfinancialwwaccountin
gwwstandards.
Bloom's:w w Rememberw w AAC
SB:w w AnalyticalwwThinking
Accessibility:w w KeyboardwwNavigation




1
Copyrightww2020ww©wwMcGraw-
HillwwEducation.wwAllwwrightswwreserved.wwNowwreproductionwworwwdistributionwwwithoutwwthewwpriorwwwrittenwwc
onsent of McGraw-Hill Education.

,3) WhichwwofwwthewwfollowingwwstatementswwaboutwwthewwFinancialwwAccountingwwStandard
swwBoardwwiswwcorrect?
A) ThewwFASBwwiswwanwwagencywwofwwthewwFederalwwgovernment.
B) ThewwFASBwwhaswwthewwauthoritywwtowwfinewwawwnoncompliantwwfirm.
C) ThewwFASBwwfollowswwawwduewwprocesswwprocedurewwthatwwpermitswwinputwwfromwwinterestedww
partieswwbeforewwanwwAccountingwwStandardswwUpdateww(ASU)wwiswwissued.
D) ThewwFASBwwiswwcontrolledwwbywwthewwAmericanwwInstitutewwofwwCPAs.

Answer:w w CwwDiffic
ulty:ww2wwMedium
Topic:w w HowwwHaswwAccountingwwDeveloped?
LearningwwObjective:w w 01-
05wwExplainwwthewwrolewwthatwwthewwFASBwwplayswwinwwthewwdevelopmentwwofwwfinancialwwaccountin
gwwstandards.
Bloom's:w w UnderstandwwAAC
SB:w w AnalyticalwwThinking
Accessibility:w w KeyboardwwNavigation

4) Majorwwclassificationswwofwwaccountingwwactivitywwwouldwwnotwwinclude:
A) financialwwaccounting,wwinternalwwauditing,wwpublicwwaccounting.
B) internalwwauditing,wwgovernmentalwwaccounting,wwmanagerialwwaccounting.
C) financialwwaccounting,wwnationalwwaccounting,wwcostwwaccounting.
D) auditing,wwincomewwtaxwwaccounting,wwgovernmentalwwaccounting.

Answer:w w CwwDiffi
culty:ww1wwEasy
Topic:w w WhatwwIswwAccounting?
LearningwwObjective:w w 01-
03wwIdentifywwthewwvarietywwofwwprofessionalwwserviceswwthatwwaccountantswwprovide.wwBloom's:w w R
emember
AACSB:w w AnalyticalwwThinkingwwAcc
essibility:w w KeyboardwwNavigation

5) Whichwwofwwthewwfollowingwwiswwnotwwanwwexamplewwofwwawwdecisionwworwwinformedwwjudgmentw
wthatwwawwpotentialwwinvestorwwwouldwwmakewwfromwwaccountingwwinformation?

A) Futurewwprofitabilitywwbasedwwonwwpastwwprofitability.
B) Probabilitywwofwwsuccesswwofwwawwnewwwproductwwdevelopment.
C) Awwforecastwwofwwdividends.
D) Assessmentwwofwwriskwwthatwwawwcompanywwmaywwhavewwmorewwdebtwwthanwwitwwcanwwrepayw
wifwwthewweconomywwenterswwawwrecession.



Answer:w w BwwDiffic
ulty:ww2wwMedium
Topic:w w WhatwwIswwAccounting?
LearningwwObjective:w w 01-
02wwIdentifywwwhowwthewwuserswwofwwaccountingwwinformationwwarewwandwwexplainwwwhywwtheywwfi
2
Copyrightww2020ww©wwMcGraw-
HillwwEducation.wwAllwwrightswwreserved.wwNowwreproductionwworwwdistributionwwwithoutwwthewwpriorwwwrittenwwc
onsent of McGraw-Hill Education.

, ndwwaccountingwwinformationwwuseful.
Bloom's:w w UnderstandwwAAC
SB:w w ReflectivewwThinking




3
Copyrightww2020ww©wwMcGraw-
HillwwEducation.wwAllwwrightswwreserved.wwNowwreproductionwworwwdistributionwwwithoutwwthewwpriorwwwrittenwwc
onsent of McGraw-Hill Education.