Exam (elaborations)
Test Bank For Financial Accounting Fundamentals, 8th Edition By John Wild
- Course
- Institution
Test Bank For Financial Accounting Fundamentals, 8th Edition By John Wild
[Show more]
Content preview
Test Bank For Financial Accounting Fundamentals, 8th Edition By John Wild Chapter 1 -13 Answers are at the End of Each Chapter Chapter 01: Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Accountin g is an information and measurement system that identifies, records, and communicates an organization's business activities. ⊚ true ⊚ false 2) Accounting includes the analysis and interpretation of information. ⊚ true ⊚ false 3) Financial accounting focuses on the nee ds of external users, who get accounting information from general -purpose financial statements. ⊚ true ⊚ false 4) Internal users of accounting information do not directly manage the organization and have limited access to its accounting information. ⊚ true ⊚ false 5) Auditors verify the effectiveness of internal controls. ⊚ true ⊚ false 6) External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles. ⊚ true ⊚ false 7) External users include lenders, sharehold ers, customers, and regulators. ⊚ true ⊚ false NURSEDOCS 8) Internal users include lenders, shareholders, brokers and nonexecutive employees. ⊚ true ⊚ false 9) Opportunities in accounting include auditing, consulting, market research, and tax planning. ⊚ true ⊚ false 10) The fraud tri angle shows that three factors that push a person to commit fraud are opportunity, pressure, and rationalization. ⊚ true ⊚ false 11) Internal controls are procedures to protect assets, ensure reliable accounting, promote efficiency, and uphold company policies. ⊚ true ⊚ false 12) A partnership is a business owned by two or more people. ⊚ true ⊚ false 13) Owners of a corporation are called shareholders or stockholders. ⊚ true ⊚ false 14) In a partnership, the owners are called stockholders. ⊚ true ⊚ false 15) The balance sheet shows a company 's net income or loss over a period of time. ⊚ true ⊚ false 16) The Financial Accounting Standards Board (FASB) is given the task of setting generally accepted accounting principles (GAAP) from the Securities and Exchange Commission. ⊚ true ⊚ false NURSEDOCS 17) The business enti ty assumption means that accounting information presumes that the business will continue operating instead of being closed or sold. ⊚ true ⊚ false 18) GAAP wants information to have relevance and faithful representation. ⊚ true ⊚ false 19) The business entity assumption means that a business is accounted for separately from other business entities and its owner(s). ⊚ true ⊚ false 20) Revenues should not be recognized in the accounting records when earned, but rather when cash is received. ⊚ true ⊚ false 21) Specific accounting princip les are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long -used accounting practice. ⊚ true ⊚ false 22) A sole proprietorship is a business with multiple owners. ⊚ true ⊚ false 23) Unlimited liability and separate taxati on of the business are advantages of a sole proprietorship. ⊚ true ⊚ false 24) Objectives, qualitative characteristics, elements, and recognition and measurement are components of the FASB conceptual framework. ⊚ true ⊚ false NURSEDOCS 25) Objectivity means that information is su pported by independent, unbiased evidence. ⊚ true ⊚ false 26) The going -concern assumption presumes that a business will continue operating instead of being closed or sold. ⊚ true ⊚ false 27) The measurement principle prescribes that accounting information is based on s ubjective opinion rather than cost. ⊚ true ⊚ false 28) The monetary unit assumption means that companies should express transactions and events in terms such as “a lot” or “very little ”. ⊚ true ⊚ false 29) The International Accounting Standards Board (IASB) issues Inter national Financial Reporting Standards (IFRS) that identify preferred accounting practices. ⊚ true ⊚ false 30) A limited liability company (LLC) offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation. ⊚ true ⊚ false 31) A limited liability company (LLC) offers the limited liability of a corporation and the tax treatment of a partnership or proprietorship. ⊚ true ⊚ false 32) The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees proper use of GAAP by companies that sell stock and debt to the public. ⊚ true ⊚ false NURSEDOCSThe 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 Nursedocs. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
