Test Bank for Survey of Accounting, 15th Edition by Carl S. Warren.pdf

Test Bank for Survey of Accounting 10e 10th Edition by Carl Warren, Amanda Farmer
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Chapc 01c 10ecWarren
All Chapters
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Indicatec whetherc thec statementc isc truec orc false.
c 1.cThecpopularitycofcthecsolecproprietorshipciscduectoctheceasecandclowccostcofcorganizing.
a. True
b. False

ANSWER:c True

c 2.cAccorporationciscacbusinesscthatcisclegallycseparatecandcdistinctcfromcitscowners.
a. True
b. False

ANSWER:c True

c 3.cMerchandisingcbusinessescproducecproductscrathercthancprovidecservicesctoccustomers.
a. True
b. False

ANSWER:c False

c 4.cAcpartnershipciscownedcbyctwocorcmorecindividuals.
a. True
b. False

ANSWER:c True

c 5.cAclimitedcliabilityccompanyccombinescattributescofcacpartnershipcandcaccorporation.
a. True
b. False

ANSWER:c True

c 6.cThecownershipcofcacproprietorshipciscdividedcintocsharescofcstockcownedcbycitscstockholders.
a. True
b. False

ANSWER:c False

c 7.cAccountingciscoftenccalledcthec"languagecofcbusiness"cbecausecbusinesscinformationcisccommunicatedctocst
akeholders.
a. True
b. False

ANSWER:c True




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,Name: Class: Date:

Chapc 01c 10ecWarren

c 8.cJohncDeereciscacleadingcmanufacturercofcagriculturalcmachinerycincthecworld,cproducingcproductscthatcservecuniq
uecmarketcneeds.cTherefore,cJohncDeereciscancexamplecofcaccompanycthatcusescacpremium-
pricecapproachctocattractccustomers.
a. True
b. False

ANSWER:c True

c 9.cCreditorschavecpreferencectocassetscbehindcstockholderscifcacbusinesscfails.
a. True
b. False

ANSWER:c False

c 10.cAcliabilityciscaclegalcobligationctocrepaycthecamountcborrowedcaccordingctocthectermscofcthecborrowingcagreement.
a. True
b. False

ANSWER:c True

c 11.cThecbalancecsheetcrepresentscthecaccountingcequation.
a. True
b. False

ANSWER:c True

c 12.cAcprimarycdisadvantagecofccorporationsciscthatcthecfinancialcresourcescavailablectocthemcareclimited.
a. True
b. False

ANSWER:c False

c 13.cAssetscarecacquiredcthroughcinvestingcactivitiescwhencresourcescarecpurchased.
a. True
b. False

ANSWER:c True

c 14.cThecobjectivecofcmostcbusinessescisctocmaximizecprofits.
a. True
b. False

ANSWER:c True




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,Name: Class: Date:

Chapc 01c 10ecWarren

c 15.cThecstockholders'cequitycofcaccompanycshouldcequalcthecsumcofcitsctotalcassetscandctotalcliabilities.
a. True
b. False

ANSWER:c False

c 16.cThecbranchcofcaccountingcrelatedctocthecmanagement'scfinancialcdecisionsciscknowncascfinancialcaccounting.
a. True
b. False

ANSWER:c False

c 17.cAllcmerchandisingcbusinessescarecorganizedcasccorporations.
a. True
b. False

ANSWER:c False

c 18.cStockholderscofcaccorporationcarecitscinternalcstakeholders.
a. True
b. False

ANSWER:c False

c 19.cThecbasicctypecofcstockcissuedctocownerscisccalledccommoncstock.
a. True
b. False

ANSWER:c True

c 20.cAcbusinesscstakeholderchascancinterestcincthececonomiccperformancecofcaccompany.
a. True
b. False

ANSWER:c True

c 21.cManufacturingcbusinessescchangecbasiccinputscintocproductscthatcarecsoldctocindividualccustomers.
a. True
b. False

ANSWER:c True

c 22.cCompaniescusingcaclow-costcemphasiscprovidecproductscandcservicescthatccompeteconcfeaturescothercthancprice.
a. True
b. False

ANSWER:c False


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, Name: Class: Date:

Chapc 01c 10ecWarren

Indicatec thec answerc choicec thatc bestc completesc thec statementc orc answersc thec question.
c 23.cWhencacbusinesscborrowscmoney,cwhichcofcthecfollowingciscincurred?
a. Ancaccumulatedcdepletion
b. Acliability
c. Acloss
d. Ancaccruedcexpenditure

ANSWER:c b

c 24.cWhatciscthecprimarycobjectivecofcmostcbusinesses?
a. Tocmaximizecprofits
b. Tocpaycdividendsctocstockholders
c. Tocprovidecacbenefitctocsociety
d. Tocmanufacturecacqualitycproduct

ANSWER:c a

c 25.cAcnotecpayablecrequirescpaymentcofcthecamountcborrowedcplusc .
a. interest
b. tax
c. overhead
d. dividend

ANSWER:c a

c 26.cIfctherecarecnocbeginningcretainedcearnings,cnetcincomecofc$31,200,candcendingcretainedcearningscofc$9,000,chowcm
uchcarecdividends?
a. $40,200
b. $9,000
c. $22,200
d. $4,500

ANSWER:c c

c 27.cWhichcofcthecfollowingciscnotcancexamplecofcaccapitalcmarketcstakeholder?
a. Banks
b. Owners
c. Suppliers
d. Stockholders

ANSWER:c c




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