Financial Accounting, 16th Edition – Carl Warren, Christine Jonick & Jennifer Schneider, Complete Test Bank

TEST BANK #z



Financial Accounting
#z




by Carl S. Warren, Christine Jonick, Jennifer Schneider
#z #z #z #z #z #z #z


16th Edition.
#z




FULL TEST BANK!!!
#z #z

,True / False Answers

1. A merchandising business buys products from other businesses to sell to customers.
a. True
b. False
ANSWER: True

2. The role of accounting is to provide many different users with financial information to make economic decisions.
a. True
b. False
ANSWER: True

3. Accounting information users need reports about the economic activities and condition of businesses.
a. True
b. False
ANSWER: True

4. Managerial accounting information is used by external and internal users equally.
a. True
b. False
ANSWER: False

5. Senior executives cannot be criminally prosecuted for the wrongdoings they commit on behalf of the companies where
they work.
a. True
b. False
ANSWER: False

6. Financial accounting provides information to all users, while the main focus for managerial accounting is to provide
information to the management.
a. True
b. False
ANSWER: True

,7. Proper #zethical #zconduct #zimplies #zthat #zyou #zonly #zconsider #zwhat's #zin #zyour #zbest #zinterest.
a. True
b. False
ANSWER: False

8. Some #zof #zthe #zmajor #zfraudulent #zacts #zcommitted #zby #zsenior #zexecutives #zstarted #zas #zwhat #zthey #zconsidered #zto #zbe
#zsmall #zethical #zlapses #zthat #zgrew #zout #zof #zcontrol.

a. True
b. False
ANSWER: True

9. A #zbusiness #zis #zan #zorganization #zin #zwhich #zbasic #zresources #zor #zinputs, #zsuch #zas #zmaterials #zand #zlabor, #zare
#zassembled #zand #zprocessed #zto #zprovide #zoutputs #zin #zthe #zform #zof #zgoods #zor #zservices #zto #zcustomers.

a. True
b. False
ANSWER: True

10. Two #zfactors #zthat #ztypically #zlead #zto #zethical #zviolations #zare #zrelevance #zand #ztimeliness #zof #zaccounting #zinformation.
a. True
b. False
ANSWER: False

11. Financial #zaccounting #zreports #zare #zrelevant #zonly #zto #zusers #zwithin #zthe #zbusiness.
a. True
b. False
ANSWER: False

12. The #zSarbanes-Oxley #zAct #zestablished #zstandards #zfor #zcorporate #zresponsibility #zand #zdisclosure.
a. True
b. False
ANSWER: True

13. The #zmain #zobjective #zfor #zall #zbusiness #zis #zto #zmaximize #zunrealized #zprofits.
a. True
b. False
ANSWER: False

14. The #zprimary #zrole #zof #zaccounting #zis #zto #zdetermine #zthe #zamount #zof #ztaxes #za #zbusiness #zwill #zbe #zrequired #zto
#zpay #zto #ztaxing #zentities.

a. True
b. False
ANSWER: False

15. The #zbasic #zdifference #zbetween #zmanufacturing #zand #zmerchandising #zcompanies #zis #zthe #zcompletion #zlevel #zof #zthe
#zproducts #zthey #zpurchase #zfor #zresale #zto #zcustomers.

a. True
b. False
ANSWER: True

, 16. An #zexample #zof #zan #zexternal #zuser #zof #zaccounting #zinformation #zis #zthe #zfederal #zgovernment.
a. True
b. False
ANSWER: True

17. Proprietorships #zare #zowned #zby #zone #zowner #zand #zprovide #zonly #zservices #zto #ztheir #zcustomers.
a. True
b. False
ANSWER: False

18. About #z90% #zof #zthe #zbusinesses #zin #zthe #zUnited #zStates #zare #zorganized #zas #zcorporations.
a. True
b. False
ANSWER: False

19. The #zFinancial #zAccounting #zStandards #zBoard #z(FASB) #zis #zthe #zauthoritative #zbody #zthat #zhas #zprimary
#zresponsibility #zfor #zdeveloping #zaccounting #zprinciples.

a. True
b. False
ANSWER: True

20. The #zcost #zconcept #zis #zthe #zbasis #zfor #zentering #zthe #zpurchase #zprice #zinto #zthe #zaccounting #zrecords.
a. True
b. False
ANSWER: True

21. The #zunit #zof #zmeasurement #zconcept #zrequires #zthat #zeconomic #zdata #zbe #zrecorded #zin #zdollars.
a. True
b. False
ANSWER: True

22. If #za #zbuilding #zis #zappraised #zfor #z$85,000, #zit #zis #zoffered #zfor #zsale #zat #z$90,000, #zand #zthe #zbuyer #zpays #z$80,000
#zcash #zfor #zit, #zthe #zbuyer #zwould #zrecord #zthe #zbuilding #zat #z$85,000.

a. True
b. False
ANSWER: False

23. The #zfinancial #zstatements #zof #za #zproprietorship #zshould #zinclude #zthe #zowner's #zpersonal #zassets #zand #zliabilities.
a. True
b. False
ANSWER: False

24. No #zsignificant #zdifferences #zexist #zbetween #zthe #zaccounting #zstandards #zissued #zby #zthe #zFASB #zand #zthe #zIASB.
a. True
b. False
ANSWER: False

25. Generally #zaccepted #zaccounting #zprinciples #zregulate #zhow #zand #zwhat #zfinancial #zinformation #zis #zreported #zby #zbusinesses.