TEST BANK
Financial and Managerial Accounting 9th Edition
By Wild Full Chapters (1-24) Covered
, TABLE OF CONTENT
Chapter 1: Accounting in Business
Chapter 2: Accounting for Business Transactions
Chapter 3: Adjusting Accounts for Financial Statements
Chapter 4: Accounting for Merchandising Operations
Chapter 5: Inventories and Cost of Sales
Chapter 6: Cash, Fraud, and Internal Control
Chapter 7: Accounting for Receivables
Chapter 8: Accounting for Long-Term Assets
Chapter 9: Accounting for Current Liabilities
Chapter 10: Accounting for Long-Term Liabilities
Chapter 11: Corporate Reporting and Analysis
Chapter 12: Reporting Cash Flows
Chapter 13: Analysis of Financial Statements
Chapter 14: Managerial Accounting Concepts and Principles
Chapter 15: Job Order Costing
Chapter 16: Process Costing and Analysis
Chapter 17: Activity-Based Costing and Analysis
Chapter 18: Cost Behavior and Cost-Volume-Profit Analysis
Chapter 19: Variable Costing and Analysis
Chapter 20: Master Budgets and Planning
Chapter 21: Flexible Budgets and Standard Costs
Chapter 22: Performance Measurement and Responsibility Accounting
Chapter 23: Relevant Costs for Managerial Decisions
Version 1 1
,Chapter 24: Capital Budgeting and Investment AnalysiFinancial and Managerial Accounting
9th Edition by Wild
CH01
CORRECT ANSWERS ARE LOCATED AT THE SECOND PART OF THIS
DOCUMENT
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Accounting is an information and measurement system that identifies, records, and
communicates an organization's business activities.
1) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users. Topic
: Importance of Accounting
2) Accounting includes the analysis and interpretation of information.
2) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users. Topic
: Importance of Accounting
Version 1 2
,Financial and Managerial Accounting 9th Edition by Wild
CH01
3) Financial accounting focuses on the needs of external users, who get accounting
information from general-purpose financial statements.
3) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Topic : Users of Accounting Information
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
4) Internal users of accounting information do not directly manage the organization and
have limited access to its accounting information.
4) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Topic : Users of Accounting Information
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
5) Auditors verify the effectiveness of internal controls.
5) b
⊚ true
⊚ false
Version 1 3
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Topic : Ethics
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
6) External auditors examine financial statements to verify that they are prepared
according to generally accepted accounting principles.
6) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Topic : Users of Accounting Information
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
7) External users include lenders, shareholders, customers, and regulators.
7) b
⊚ true
⊚ false
Version 1 4
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
Topic : Users of Accounting Information AICPA
: FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
8) Internal users include lenders, shareholders, brokers and nonexecutive employees.
8) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
Topic : Users of Accounting Information AICPA
: FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
9) Opportunities in accounting include auditing, consulting, market research, and tax
planning.
9) b
⊚ true
⊚ false
Version 1 5
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
Topic : Users of Accounting Information AICPA
: FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
10) The fraud triangle shows that three factors that push a person to commit fraud are
opportunity, pressure, and rationalization.
10) b
⊚ true
⊚ false
Question Details
AACSB : Ethics
Accessibility : Keyboard Navigation
Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Decision Making AICPA :
BB Legal
Topic : Ethics
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
11) Internal controls are procedures to protect assets, ensure reliable accounting, promote
efficiency, and uphold company policies.
11)
b
⊚ true
⊚ false
Version 1 6
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Ethics
Accessibility : Keyboard Navigation
Type : Static
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Reporting
AICPA : BB Legal Topic
: Ethics
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
12) A partnership is a business owned by two or more people.
12) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
Topic : Generally Accepted Accounting Principles
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making AICPA :
BB Legal
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
13) Owners of a corporation are called shareholders or stockholders.
13) b
⊚ true
⊚ false
Version 1 7
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
Topic : Generally Accepted Accounting Principles
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making AICPA :
BB Legal
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
14) In a partnership, the owners are called stockholders.
14) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
Topic : Generally Accepted Accounting Principles
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making AICPA :
BB Legal
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
15) The balance sheet shows a company's net income or loss over a period of time.
15) b
⊚ true
⊚ false
Version 1 8
, Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Reporting
Learning Objective : 01-P2 Identify and prepare basic financial statements and explain how they inter
Topic : Financial Statements
16) The Financial Accounting Standards Board (FASB) is given the task of setting generally
accepted accounting principles (GAAP) from the Securities and Exchange Commission.
16) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Bloom's : Understand
Topic : Generally Accepted Accounting Principles AICPA
: FN Reporting
AICPA : BB Legal
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
17) The business entity assumption means that accounting information presumes that the
business will continue operating instead of being closed or sold.
17) b
⊚ true
⊚ false
Version 1 9
Financial and Managerial Accounting 9th Edition
By Wild Full Chapters (1-24) Covered
, TABLE OF CONTENT
Chapter 1: Accounting in Business
Chapter 2: Accounting for Business Transactions
Chapter 3: Adjusting Accounts for Financial Statements
Chapter 4: Accounting for Merchandising Operations
Chapter 5: Inventories and Cost of Sales
Chapter 6: Cash, Fraud, and Internal Control
Chapter 7: Accounting for Receivables
Chapter 8: Accounting for Long-Term Assets
Chapter 9: Accounting for Current Liabilities
Chapter 10: Accounting for Long-Term Liabilities
Chapter 11: Corporate Reporting and Analysis
Chapter 12: Reporting Cash Flows
Chapter 13: Analysis of Financial Statements
Chapter 14: Managerial Accounting Concepts and Principles
Chapter 15: Job Order Costing
Chapter 16: Process Costing and Analysis
Chapter 17: Activity-Based Costing and Analysis
Chapter 18: Cost Behavior and Cost-Volume-Profit Analysis
Chapter 19: Variable Costing and Analysis
Chapter 20: Master Budgets and Planning
Chapter 21: Flexible Budgets and Standard Costs
Chapter 22: Performance Measurement and Responsibility Accounting
Chapter 23: Relevant Costs for Managerial Decisions
Version 1 1
,Chapter 24: Capital Budgeting and Investment AnalysiFinancial and Managerial Accounting
9th Edition by Wild
CH01
CORRECT ANSWERS ARE LOCATED AT THE SECOND PART OF THIS
DOCUMENT
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Accounting is an information and measurement system that identifies, records, and
communicates an organization's business activities.
1) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users. Topic
: Importance of Accounting
2) Accounting includes the analysis and interpretation of information.
2) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users. Topic
: Importance of Accounting
Version 1 2
,Financial and Managerial Accounting 9th Edition by Wild
CH01
3) Financial accounting focuses on the needs of external users, who get accounting
information from general-purpose financial statements.
3) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Topic : Users of Accounting Information
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
4) Internal users of accounting information do not directly manage the organization and
have limited access to its accounting information.
4) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Topic : Users of Accounting Information
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
5) Auditors verify the effectiveness of internal controls.
5) b
⊚ true
⊚ false
Version 1 3
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Topic : Ethics
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
6) External auditors examine financial statements to verify that they are prepared
according to generally accepted accounting principles.
6) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Topic : Users of Accounting Information
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
7) External users include lenders, shareholders, customers, and regulators.
7) b
⊚ true
⊚ false
Version 1 4
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
Topic : Users of Accounting Information AICPA
: FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
8) Internal users include lenders, shareholders, brokers and nonexecutive employees.
8) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
Topic : Users of Accounting Information AICPA
: FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
9) Opportunities in accounting include auditing, consulting, market research, and tax
planning.
9) b
⊚ true
⊚ false
Version 1 5
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
Topic : Users of Accounting Information AICPA
: FN Decision Making
Learning Objective : 01-C1 Explain the importance of accounting and identify its users.
10) The fraud triangle shows that three factors that push a person to commit fraud are
opportunity, pressure, and rationalization.
10) b
⊚ true
⊚ false
Question Details
AACSB : Ethics
Accessibility : Keyboard Navigation
Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Decision Making AICPA :
BB Legal
Topic : Ethics
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
11) Internal controls are procedures to protect assets, ensure reliable accounting, promote
efficiency, and uphold company policies.
11)
b
⊚ true
⊚ false
Version 1 6
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Ethics
Accessibility : Keyboard Navigation
Type : Static
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Reporting
AICPA : BB Legal Topic
: Ethics
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
12) A partnership is a business owned by two or more people.
12) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
Topic : Generally Accepted Accounting Principles
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making AICPA :
BB Legal
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
13) Owners of a corporation are called shareholders or stockholders.
13) b
⊚ true
⊚ false
Version 1 7
,Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
Topic : Generally Accepted Accounting Principles
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making AICPA :
BB Legal
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
14) In a partnership, the owners are called stockholders.
14) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
Topic : Generally Accepted Accounting Principles
Bloom's : Remember
Difficulty : 1 Easy
AICPA : FN Decision Making AICPA :
BB Legal
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
15) The balance sheet shows a company's net income or loss over a period of time.
15) b
⊚ true
⊚ false
Version 1 8
, Financial and Managerial Accounting 9th Edition by Wild
CH01
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
AICPA : BB Industry
Difficulty : 2 Medium
Bloom's : Understand
AICPA : FN Reporting
Learning Objective : 01-P2 Identify and prepare basic financial statements and explain how they inter
Topic : Financial Statements
16) The Financial Accounting Standards Board (FASB) is given the task of setting generally
accepted accounting principles (GAAP) from the Securities and Exchange Commission.
16) b
⊚ true
⊚ false
Question Details
AACSB : Communication Accessibility :
Keyboard Navigation Type : Static
Accessibility : Screen Reader Compatible
Difficulty : 2 Medium
Bloom's : Understand
Topic : Generally Accepted Accounting Principles AICPA
: FN Reporting
AICPA : BB Legal
Learning Objective : 01-C2 Describe the importance of ethics and GAAP.
17) The business entity assumption means that accounting information presumes that the
business will continue operating instead of being closed or sold.
17) b
⊚ true
⊚ false
Version 1 9
