Test Bank for Financial Accounting 7ce 7th Canadian Edition by Robert Libby, Patricia Libby, Daniel G. Short
ISBN-13: 5954
Full chapters test bank PDF
Chapter 1 Financial Statements and Business Decisions
Chapter 2 Investing and Financing Decisions and the Accounting System
Chapter 3 Ope...
Chapter 01 - Financial Statements and Business Decisions
Chapter 01
Financial Statements and Business Decisions
True / False Questions
1. Accounting is a system that collects and processes financial information about an
organization and reports that information to decision makers.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-01 Recognize both the information conveyed in each of the four basic financial statements and describe how the
information is used by different decision makers (investors, creditors, and managers).
Topic: 01-01 The Four Basic Financial Statements: An Overview
2. External users of accounting information include the managers who plan, organize, and run
a business.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Recognize both the information conveyed in each of the four basic financial statements and describe how the
information is used by different decision makers (investors, creditors, and managers).
Topic: 01-01 The Four Basic Financial Statements: An Overview
3. In accounting and reporting for a business entity, the accounting and reporting for the
business must be kept separate from other economic affairs of its owners.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-01 Recognize both the information conveyed in each of the four basic financial statements and describe how the
information is used by different decision makers (investors, creditors, and managers).
Topic: 01-01 The Four Basic Financial Statements: An Overview
1-1
, Chapter 01 - Financial Statements and Business Decisions
4. Accounting communicates financial information about a business to both internal and
external users.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Recognize both the information conveyed in each of the four basic financial statements and describe how the
information is used by different decision makers (investors, creditors, and managers).
Topic: 01-01 The Four Basic Financial Statements: An Overview
5. A statement of financial position should be dated for a period (such as "For the year ended
December 31, 20X1"), whereas a statement of earnings should be dated at a point in time
(such as "At December 31, 20X1").
FALSE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-01 Recognize both the information conveyed in each of the four basic financial statements and describe how the
information is used by different decision makers (investors, creditors, and managers).
Topic: 01-01 The Four Basic Financial Statements: An Overview
6. Expenses are the cost of assets consumed or services used in the process of generating
revenue.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-01 Recognize both the information conveyed in each of the four basic financial statements and describe how the
information is used by different decision makers (investors, creditors, and managers).
Topic: 01-06 The Statement of Earnings
1-2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Tutor247. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $34.99. You're not tied to anything after your purchase.
