Exam (elaborations)
Test Bank for Survey of Accounting 10th Edition by Carl Warren, Amanda Farmer A+
- Course
- Institution
- Book
Test Bank for Survey of Accounting 10th Edition by Carl Warren, Amanda Farmer A+..
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
ASolution
Reviews received
Content preview
Created By: A SolutionTest Bank for Survey of Accounting 10th Edition by Carl
Warren, Amanda Farmer A+
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
5. A limited liability company combines attributes of a partnership and a corporation.
a. True
b. False
A+ Page 1
,Created By: A Solution
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
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
A+ Page 2
,Created By: A Solution
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
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
A+ Page 3
, Created By: A Solution
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
17. All merchandising businesses are organized as corporations.
a. True
b. False
ANSWER: False
18. Stockholders of a corporation are its internal stakeholders.
a. True
b. False
ANSWER: False
19. The basic type of stock issued to owners is called common stock.
a. True
b. False
ANSWER: True
20. A business stakeholder has an interest in the economic performance of a company.
a. True
b. False
ANSWER: True
21. Manufacturing businesses change basic inputs into products that are sold to
individual customers.
a. True
b. False
A+ Page 4
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 ASolution. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79373 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now