Test Bank for Financial Accounting, 12th Edition by Robert Libby

Complete Chapters Included ✅
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Complete Answers Included
Chap 01 12e - Libby
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) A business entity's accounting system creates financial accounting reports which are
provided to external decision makers.
1) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Accounting system—Information users
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-1 (Static) A business entity's
accounting system creates...


2) Business managers utilize internal management reports to plan and manage the daily
operations.
2) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Accounting system—Information users
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-2 (Static) Business managers utilize internal
management...




1

,3) Borrowing money is an investing activity.
3) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Accounting system—Information conveyed
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-3 (Static) Borrowing money is an
investing...


4) The balance sheet includes assets, liabilities, and stockholders' equity at a point in time.
4) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Financial statements—Balance sheet
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-4 (Static) The balance sheet includes...




2

,5) Revenue is recognized within the income statement during the period in which cash is
collected.
5) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Financial statements—Income statement
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-5 (Static) Revenue is recognized within the
income...


6) Total assets are $37,500, total liabilities are $20,000 and common stock is $10,000; therefore,
retained earnings are $7,500.
6) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Apply
Business Competency : Knowledge Application
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Financial statements—Balance sheet
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-6 (Static) Total assets are $37,500, total
liabilities...




3

, 7) For the current year, net income of Carol Company is $20,000 and dividends declared are
$6,000; therefore, retained earnings have increased $26,000 during the year.
7) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Knowledge Application
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Financial statements—Stockholders equity
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-7 (Static) For the current year, net income
of...


8) The income statement is a measure of an entity's economic performance for a period of time.
8) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Financial statements—Income statement
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-8 (Static) The income statement is a measure
of...




4