TEST BANK for Financial Accounting
13th Edition
by C William Thomas and Wendy M. Tietz
Verified Chapter's 1 - 12 | Complete
,TABLE OF CONTENTS
1. The Financial Statements
2. Transaction Analysis
3. Accrual Accounting and Income
4. Internal Control and Cash
5. Receivables and Revenue
6. Inventory and Cost of Goods Sold
7. Plant Assets, Natural Resources, and Intangibles
8. Current and Contingent Liabilities
9. Long-Term Liabilities
10. Stockholders' Equity
11. The Statement of Cash Flows
12. Financial Statement Analysis
,1. The Financial Statements
Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
Financial Accounting, 13e (Thomas/Tietz)
Chapter 1 The Financial Statements
Learning Objective 1-1
1) Accounting is an information system that measures business activities.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
2) Bookkeeping is a mechanical part of accounting.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3) Accounting is often called the language of business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
4) Accounting produces financial statements, which report information about a business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
5) The accounting process begins and ends with people making decisions.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
, 6) Accounting information is used by investors and creditors, but not by regulatory bodies.
Answer: FALSE
Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Industry Sector, Legal/Regulatory
AICPA Functional: Measurement, Reporting
7) Since fHabitat ffor fHumanity fis fnot fconcerned fabout fmaking fa fprofit, fthe fentity fdoes fnot
fneed fto fusefaccounting finformation.
Answer: f FALSE
Diff: f1
LO: f 1-1
AACSB: f Reflective fThinking
AICPA fBus fPersp: f Industry fSector, fLegal/Regulatory
fAICPA fFunctional: f Measurement, fReporting
8) The fbusiness frecords fof fa fsole fproprietorship fshould finclude fthe fproprietor's fpersonal
ffinances.fAnswer: f FALSE
Diff: f1
LO: f 1-1
AACSB: f Reflective fThinking
AICPA fBus fPersp:
f Legal/RegulatoryfAICPA
fFunctional: f Measurement
9) A fpartnership fis fa ftaxpaying
fentity.fAnswer: f FALSE
Diff: f1
LO: f 1-1
AACSB: f Reflective fThinking
AICPA fBus fPersp:
f Legal/RegulatoryfAICPA
fFunctional: f Measurement
10) Stockholders fhave fno fpersonal fobligation ffor fthe fcorporation's
fdebts.fAnswer: f TRUE
Diff: f1
LO: f 1-1
AACSB: f Reflective fThinking
AICPA fBus fPersp:
f Legal/RegulatoryfAICPA
fFunctional: f Measurement
11) Accounting:
A) measures fbusiness factivities.
B) processes fdata finto freports fand fcommunicates fthe fdata fto fdecision fmakers.
C) is foften fcalled fthe flanguage fof fbusiness.
D) is fall fof fthe
13th Edition
by C William Thomas and Wendy M. Tietz
Verified Chapter's 1 - 12 | Complete
,TABLE OF CONTENTS
1. The Financial Statements
2. Transaction Analysis
3. Accrual Accounting and Income
4. Internal Control and Cash
5. Receivables and Revenue
6. Inventory and Cost of Goods Sold
7. Plant Assets, Natural Resources, and Intangibles
8. Current and Contingent Liabilities
9. Long-Term Liabilities
10. Stockholders' Equity
11. The Statement of Cash Flows
12. Financial Statement Analysis
,1. The Financial Statements
Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
Financial Accounting, 13e (Thomas/Tietz)
Chapter 1 The Financial Statements
Learning Objective 1-1
1) Accounting is an information system that measures business activities.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
2) Bookkeeping is a mechanical part of accounting.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3) Accounting is often called the language of business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
4) Accounting produces financial statements, which report information about a business.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
5) The accounting process begins and ends with people making decisions.
Answer: TRUE
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
, 6) Accounting information is used by investors and creditors, but not by regulatory bodies.
Answer: FALSE
Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
AICPA Bus Persp: Industry Sector, Legal/Regulatory
AICPA Functional: Measurement, Reporting
7) Since fHabitat ffor fHumanity fis fnot fconcerned fabout fmaking fa fprofit, fthe fentity fdoes fnot
fneed fto fusefaccounting finformation.
Answer: f FALSE
Diff: f1
LO: f 1-1
AACSB: f Reflective fThinking
AICPA fBus fPersp: f Industry fSector, fLegal/Regulatory
fAICPA fFunctional: f Measurement, fReporting
8) The fbusiness frecords fof fa fsole fproprietorship fshould finclude fthe fproprietor's fpersonal
ffinances.fAnswer: f FALSE
Diff: f1
LO: f 1-1
AACSB: f Reflective fThinking
AICPA fBus fPersp:
f Legal/RegulatoryfAICPA
fFunctional: f Measurement
9) A fpartnership fis fa ftaxpaying
fentity.fAnswer: f FALSE
Diff: f1
LO: f 1-1
AACSB: f Reflective fThinking
AICPA fBus fPersp:
f Legal/RegulatoryfAICPA
fFunctional: f Measurement
10) Stockholders fhave fno fpersonal fobligation ffor fthe fcorporation's
fdebts.fAnswer: f TRUE
Diff: f1
LO: f 1-1
AACSB: f Reflective fThinking
AICPA fBus fPersp:
f Legal/RegulatoryfAICPA
fFunctional: f Measurement
11) Accounting:
A) measures fbusiness factivities.
B) processes fdata finto freports fand fcommunicates fthe fdata fto fdecision fmakers.
C) is foften fcalled fthe flanguage fof fbusiness.
D) is fall fof fthe
