Test Bank for Financial Accounting for Undergraduates 4e 4th Edition by Wallace, Nelson, Christensen.
ISBN-13: 3081
Full chapters test bank PDF
Contents (pg. xi)
Chapter 1 Financial Accounting and Business Decisions (pg. 2)
Chapter 2 Processing Accounting Information (pg. 56)
Chapte...
Test Bank, Chapter 1 1-1Chapter 1 Financial Accounting and Business Decisions Learning Objectives – Coverage by question
True / False Multiple Choice Exercises Problems LO1 – Explain business organization and its three forms. 1-31 LO2 – Describe business activities. 6-8 4-10 3 LO3 – Indicate who uses accounting information. 1-5 11-17 1, 2 LO4 – Explain the accounting process and generally accepted accounting principles. 9-12 18-23
LO5 – Describe the accounting equation and each financial statement. 13-24 24-105 4-17 1-3
LO6 – Explain additional disclosures that accompany financial statements. 106-110 18 LO7 – Describe careers in accounting. LO8 – Appendix 1A: Discuss FASB’s conceptual framework. 25-30 111-125 19, 20 1-2 Financial Accounting for Undergraduates, 4th Edition Chapter 1: Financial Accounting and Business Decisions True / False Topic: Managerial Accounting LO: 3 1.A major function of managerial accounting is to provide general purpose financial statements for
parties outside the organization.
Answer: False
Rationale: A major function of managerial accounting is to provide management with accounting data
for decisions related to a firm’s operations. Providing general purpose financial statements for parti es
outside an organization is a function of financial accounting.
Topic: Ethics LO: 3 2.It is unusual for U.S. businesses to develop written codes of ethics to guide their employees.
Answer: False
Rationale: It is now commonplace for businesses to develop written codes of ethics to help guide the
behavior of their employees.
Topic: Ethics LO: 3 3.An emphasis on short -term profits may contribute to ethical breakdowns within a business.
Answer: True
Rational e: A criticism of U.S. business practices is that they are too “bottom -line” (that is, short- term
profit ) oriented. This orientation can lead to unethical actions by management to increase reported
short -term profits.
Topic: Accounting Information Users LO: 3 4.Financial accounting is designed primarily for decision makers within a company.
Answer: False
Rationale: Financial accounting is designed primarily to provide information to decision makers
outside of a company, while managerial accounting is designed primarily to provide accounting
information for decision makers within a company.
Topic: Ethics and Accoun ting LO: 3 5.The goal of the Sarbanes -Oxley Act of 2002 was to increase the level of confidence that external
users have in a company’s financial statements.
Answer: True
Rationale: In the wake of various business scandals, like that involving Enron Corporation , the U.S .
Congress passed the Sarbanes -Oxley Act to improve external user confidence in financial statement
reporting.
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