Test Bank
Fundamental Financial Accounting Concepts
11th Edition by Thomas Edmonds, Philip Olds
All Chapters 1-13 Complete
, TABLE OF CONTENT
q q
Chapterq1qAnqIntroductionqtoqAccounting
Chapterq2qAccountingqforqAccrualsqandqDeferrals?
Chapterq3qTheqDouble-EntryqAccountingqSystem?
Chapterq4qAccountingqforqMerchandisingqBusinesses?
Chapterq5qAccountingqforqInventories?
Chapterq6qInternalqControlqandqAccountingqforqCash?
Chapterq7qAccountingqforqReceivables?
Chapterq8qAccountingqforqLong-TermqOperationalqAssets?
Chapterq9qAccountingqforqCurrentqLiabilitiesqandqPayroll?
Chapterq10qAccountingqforqLong-TermqDebt?
Chapterq11qProprietorships,qPartnerships,qandqCorporations?
Chapterq12qStatementqofqCashqFlows?
Chapterq13qFinancialqStatementqAnalysisq(AvailableqonlineqinqConnect)?
,Studentqname:
1) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqmarketsqisqtrueqorqfalse.
a)qFinancialqresourcesqcanqbeqprovidedqtoqaqbusinessqbyqinvestors.
b)qResourceqownersqareqtheqbusinessesqthatqtransformqresourcesqintoqproductsq
thatqsatisfyqconsumerqdesires.
c)qLaborqresourcesqincludeqbothqtheqphysicalqandqintellectualqlaborqofqaqbusines
s'sqemployees.
d)qBusinessesqpurchaseqtheirqresourcesqfromqresourceqowners.
e)qConsumersqareqtheqmainqprovidersqofqresourcesqinqanyqmarket.
2) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqaccountingqinformationqisqtrueq
orqfalse.
a)qFinancialqaccountingqisqprimarilyqintendedqtoqsatisfyqtheqinformationqneedsqo
fqinternalqstakeholders.
b)qManagerialqaccountingqinformationqincludesqfinancialqandqnonfinancial
qinformation.
c)qTheqaccountingqinformationqintendedqtoqsatisfyqtheqneedsqofqaqcompany'
sqemployeesqisqmanagerialqaccountingqinformation.
d)qGAAPqrequiresqthatqcompaniesqadhereqtoqfinancialqaccountingqstandards.
e)qManagerialqaccountingqinformationqisqusuallyqlessqdetailedqthanqfinancia
lqaccountingqinformation.
3) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqliabilitiesqisqtrueqorqfalse.
a)qAqnetqlossqonqtheqincomeqstatementqdecreasesqliabilities.
b)qTheqacquisitionqofqaqbankqloanqincreasesqbothqassetsqandqliabilities.
c)qTheqaccountingqequationqrequiresqthatqliabilitiesqbeqequalqtoqstockholders’qequity.
d)qTheqamountqofqaqcompany'sqliabilitiesqisqequalqtoqtheqdifferenceqbetweenqitsqass
etsqandqitsqstockholders’qequity.
e)qLiabilitiesqareqreportedqonqtheqstatementqofqcashqflowsqofqaqbusiness.
, 4) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqretainedqearningsqisqtrueqorqfalse.
a)qAqdividendqpaidqtoqstockholdersqdecreasesqretainedqearnings.
b)qIssuingqcommonqstockqforqcashqincreasesqretainedqearnings.
c)qTheqamountqofqnetq incomeqforqaqperiodqmustqequalqretainedqearnings.
d)qTheqpurchaseqofqaqtruckqdecreasesqretainedqearnings.
e)qNetqincomeqincreasesqretainedqearnings.
5) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqtheqtypesqofqtransactionsqisqtr
ueqorqfalse.
a)qAnqassetqsourceqtransactionqincreasesqtotalqassetsqandqincreasesqclaimsqtoqassets.
b)qTheqissuanceqofqstockqtoqownersqforqcashqwouldqbeqanqexampleqofqanqas
setqexchangeqtransaction.
c)qPurchasingqequipmentqforqcashqisqanqexampleqofqanqassetquseqtransaction.
d)qPayingqaqdividendqtoqstockholdersqisqanqexampleqofqanqassetquseqtransaction.
e)qMakingqaqpaymentqonqaqbankqloanqisqanqexampleqofqanqassetqexchangeqtransaction.
6) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqfinancialqstatementsqisqtrue
qorqfalse.
a)qAqcashqdividendqpaidqtoqstockholdersqisqreportedqinqtheqinvestingqactivitiesqsectio
nqofqtheqstatementqofqcashqflows.
b)qAqcashqdividendqpaidqtoqstockholdersqisqreportedqonqtheqstatementqofqchangesq
inqstockholders'qequity.
c)qAqcashqdividendqpaidqtoqstockholdersqisqreportedqonqtheqincomeqstatement.
d)qTheqbalanceqsheetqreportsqtheqendingqbalancesqofqpermanentqaccountsqasqofqtheq
lastqdayqofqtheqaccountingqperiod.
e)qChangesqinqretainedqearningsqduringqtheqaccountingqperiodqareqreportedqonqth
eqincomeqstatement.
Fundamental Financial Accounting Concepts
11th Edition by Thomas Edmonds, Philip Olds
All Chapters 1-13 Complete
, TABLE OF CONTENT
q q
Chapterq1qAnqIntroductionqtoqAccounting
Chapterq2qAccountingqforqAccrualsqandqDeferrals?
Chapterq3qTheqDouble-EntryqAccountingqSystem?
Chapterq4qAccountingqforqMerchandisingqBusinesses?
Chapterq5qAccountingqforqInventories?
Chapterq6qInternalqControlqandqAccountingqforqCash?
Chapterq7qAccountingqforqReceivables?
Chapterq8qAccountingqforqLong-TermqOperationalqAssets?
Chapterq9qAccountingqforqCurrentqLiabilitiesqandqPayroll?
Chapterq10qAccountingqforqLong-TermqDebt?
Chapterq11qProprietorships,qPartnerships,qandqCorporations?
Chapterq12qStatementqofqCashqFlows?
Chapterq13qFinancialqStatementqAnalysisq(AvailableqonlineqinqConnect)?
,Studentqname:
1) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqmarketsqisqtrueqorqfalse.
a)qFinancialqresourcesqcanqbeqprovidedqtoqaqbusinessqbyqinvestors.
b)qResourceqownersqareqtheqbusinessesqthatqtransformqresourcesqintoqproductsq
thatqsatisfyqconsumerqdesires.
c)qLaborqresourcesqincludeqbothqtheqphysicalqandqintellectualqlaborqofqaqbusines
s'sqemployees.
d)qBusinessesqpurchaseqtheirqresourcesqfromqresourceqowners.
e)qConsumersqareqtheqmainqprovidersqofqresourcesqinqanyqmarket.
2) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqaccountingqinformationqisqtrueq
orqfalse.
a)qFinancialqaccountingqisqprimarilyqintendedqtoqsatisfyqtheqinformationqneedsqo
fqinternalqstakeholders.
b)qManagerialqaccountingqinformationqincludesqfinancialqandqnonfinancial
qinformation.
c)qTheqaccountingqinformationqintendedqtoqsatisfyqtheqneedsqofqaqcompany'
sqemployeesqisqmanagerialqaccountingqinformation.
d)qGAAPqrequiresqthatqcompaniesqadhereqtoqfinancialqaccountingqstandards.
e)qManagerialqaccountingqinformationqisqusuallyqlessqdetailedqthanqfinancia
lqaccountingqinformation.
3) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqliabilitiesqisqtrueqorqfalse.
a)qAqnetqlossqonqtheqincomeqstatementqdecreasesqliabilities.
b)qTheqacquisitionqofqaqbankqloanqincreasesqbothqassetsqandqliabilities.
c)qTheqaccountingqequationqrequiresqthatqliabilitiesqbeqequalqtoqstockholders’qequity.
d)qTheqamountqofqaqcompany'sqliabilitiesqisqequalqtoqtheqdifferenceqbetweenqitsqass
etsqandqitsqstockholders’qequity.
e)qLiabilitiesqareqreportedqonqtheqstatementqofqcashqflowsqofqaqbusiness.
, 4) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqretainedqearningsqisqtrueqorqfalse.
a)qAqdividendqpaidqtoqstockholdersqdecreasesqretainedqearnings.
b)qIssuingqcommonqstockqforqcashqincreasesqretainedqearnings.
c)qTheqamountqofqnetq incomeqforqaqperiodqmustqequalqretainedqearnings.
d)qTheqpurchaseqofqaqtruckqdecreasesqretainedqearnings.
e)qNetqincomeqincreasesqretainedqearnings.
5) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqtheqtypesqofqtransactionsqisqtr
ueqorqfalse.
a)qAnqassetqsourceqtransactionqincreasesqtotalqassetsqandqincreasesqclaimsqtoqassets.
b)qTheqissuanceqofqstockqtoqownersqforqcashqwouldqbeqanqexampleqofqanqas
setqexchangeqtransaction.
c)qPurchasingqequipmentqforqcashqisqanqexampleqofqanqassetquseqtransaction.
d)qPayingqaqdividendqtoqstockholdersqisqanqexampleqofqanqassetquseqtransaction.
e)qMakingqaqpaymentqonqaqbankqloanqisqanqexampleqofqanqassetqexchangeqtransaction.
6) Indicateqwhetherqeachqofqtheqfollowingqstatementsqaboutqfinancialqstatementsqisqtrue
qorqfalse.
a)qAqcashqdividendqpaidqtoqstockholdersqisqreportedqinqtheqinvestingqactivitiesqsectio
nqofqtheqstatementqofqcashqflows.
b)qAqcashqdividendqpaidqtoqstockholdersqisqreportedqonqtheqstatementqofqchangesq
inqstockholders'qequity.
c)qAqcashqdividendqpaidqtoqstockholdersqisqreportedqonqtheqincomeqstatement.
d)qTheqbalanceqsheetqreportsqtheqendingqbalancesqofqpermanentqaccountsqasqofqtheq
lastqdayqofqtheqaccountingqperiod.
e)qChangesqinqretainedqearningsqduringqtheqaccountingqperiodqareqreportedqonqth
eqincomeqstatement.
