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Test Bank For Survey of Accounting 10th Edition By Carl Warren, Amanda Farmer || All Chapters ( 1-14 ) With Appendix ( A,B,C,D,E,F,G) || ISBN 9780357900291 Latest A+$12.99
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Test Bank For Survey of Accounting 10th Edition By Carl Warren, Amanda Farmer || All Chapters ( 1-14 ) With Appendix ( A,B,C,D,E,F,G) || ISBN 9780357900291 Latest A+
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Survey of Accounting 10th Edition
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Survey Of Accounting 10th Edition
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Survey of Accounting
Test Bank For Survey of Accounting 10th Edition By Carl Warren, Amanda Farmer || All Chapters ( 1-14 ) With Appendix ( A,B,C,D,E,F,G) || ISBN 9780357900291 Latest A+
Test Bank for Survey of Accounting 10th Edition by Carl Warren, Amanda
Farmer || All Chapters ( 1-14 ) With Appendix ( A,B,C,D,E,F,G) || A+
1. The Role of Accounting in Business
Indicate whether the statement is true or false.
—1. The popularity of the sole proprietorship is due to the ease and low cost of organizing.
a. True
b. False
ANSWER: True
—2. A corporation is a business that is legally separate and distinct from its owners.
a. True
b. False
ANSWER: True
—3. Merchandising businesses produce products rather than provide services to customers.
a. True
b. False
ANSWER: False
—4. A partnership is owned by two or more individuals.
a. True
b. False
ANSWER: True
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PAGE 1
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—5. A limited liability company combines attributes of a partnership and a corporation.
a. True
b. False
ANSWER: True
—6. The ownership of a proprietorship is divided into shares of stock owned by its stockholders.
a. True
b. False
ANSWER: False
—7. Accounting is often called the "language of business" because business information is
communicated to
stakeholders.
a. True
b. False
ANSWER: True
—8. John Deere is a leading manufacturer of agricultural machinery in the world, producing
products that serve unique market needs. Therefore, John Deere is an example of a company that
uses a premium-price approach to attract customers.
a. True
b. False
ANSWER: True
Testbank A++
PAGE 2
,Created By : TestsBanks
—9. Creditors have preference to assets behind stockholders if a business fails.
a. True
b. False
ANSWER: False
—10. A liability is a legal obligation to repay the amount borrowed according to the terms of the
borrowing agreement.
a. True
b. False
ANSWER: True
—11. The balance sheet represents the accounting equation.
a. True
b. False
ANSWER: True
—12. A primary disadvantage of corporations is that the financial resources available to them are
limited.
a. True
b. False
ANSWER: False
Testbank A++
PAGE 3
, Created By : TestsBanks
—13. Assets are acquired through investing activities when resources are purchased.
a. True
b. False
ANSWER: True
—14. The objective of most businesses is to maximize profits.
a. True
b. False
ANSWER: True
—15. The stockholders' equity of a company should equal the sum of its total assets and total
liabilities.
a. True
b. False
ANSWER: False
—16. The branch of accounting related to the management's financial decisions is known as
financial accounting.
a. True
b. False
ANSWER: False
Testbank A++
PAGE 4
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