Test Bank For Survey Of Accounting,
7th Edition By Edmonds & Olds
1
, Survey Of Accounting, 7th Edition By Edmonds, Olds Test Bank
Answers Included
Chap 01 7e Edmonds
1) Which Of The Following Groups Has The Primary Responsibility For Establishing
Generally Accepted Accounting Principles For Business Entities In The United States?
A) Securities And Exchange Commission
B) U.S. Congress
C) International Accounting Standards Board
D) Financial Accounting Standards Board
2) The Heritage Company Is A Manufacturer Of Office Furniture. Which Term Best
Describes Heritage's Role In Society?
A) Business
B) Regulatory Agency
C) Consumer
D) Resource Owner
3) Which Resource Providers Lend Financial Resources To A Business With The
Expectation Of Repayment With Interest?
A) Consumers
B) Creditors
C) Investors
D) Owners
4) Which Type Of Accounting Information Is Intended To Satisfy The Needs Of External
Users Of Accounting Information?
A) Cost Accounting
B) Managerial Accounting
C) Tax Accounting
D) Financial Accounting
5) Which Of The Following Is False Regarding Managerial Accounting Information?
A) It Is Often Used By Investors.
B) It Is More Detailed Than Financial Accounting Information.
C) It Can Include Nonfinancial Information.
D) It Focuses On Divisional Rather Than Overall Profitability.
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,6) Financial Accounting Standards Are Known Collectively As GAAP. What Does That
Acronym Stand For?
A) Generally Accepted Accounting Principles
B) Generally Applied Accounting Procedures
C) Governmentally Approved Accounting Practices
D) Generally Authorized Auditing Principles
7) International Accounting Standards Are Formulated By The IASB. What Does That
Acronym Stand For?
A) Internationally Accepted Standards Board
B) International Accounting Standards Board
C) International Accountability Standards Bureau
D) International Accounting And Sustainability Board
8) Jack Henry Borrowed $800,000 From Walt Bank To Open A New Bike Store Called
Wooden Wheels. Jack Transferred $650,000 Of The Cash That He Borrowed To The Store
On The First Day Of The Year. How Many Reporting Entities Exist In This Scenario?
A) One Reporting Entity
B) Two Reporting Entities
C) Three Reporting Entities
D) Four Reporting Entities
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, 9) Jack Henry Borrowed $800,000 From Walt Bank To Open A New Bike Store Called
Wooden Wheels. Jack Transferred $650,000 Of The Cash He Borrowed To Wooden
Wheels On The First Day Of The Year. Which Of The Following Appropriately Reflects
The Cash Transactions Between These Reporting Entities?
Option Jack Henry Wooden Wheels Walt Bank
A. $ 150,000 Increase $ 650,000 $ 800,000
Increase Decrease
B. $ 800,000 Increase $ 650,000 $ 150,000
Increase Decrease
C. $ 800,000 Decrease $ 800,000 $ 650,000
Increase Decrease
D. $ 650,000 Increase $ 150,000 $ 800,000
Increase Decrease
A) Option A
B) Option B
C) Option C
D) Option D
10) Ellen Gatsby And Her Siblings, Ben And Sarah, Started Gatsby Company When They
Each Invested $100,000 In The Company. After The Investments There Will Be
A) One Reporting Entity.
B) Two Reporting Entities.
C) Three Reporting Entities.
D) Four Reporting Entities.
11) John Hamilton Borrowed $528,000 From Stone Creek Bank To Open A New Restaurant
Called Sauce-It-Up. John Transferred $475,200 Of The Cash He Borrowed To The
Restaurant On The First Day Of The Year. How Many Reporting Entities Exist In This
Scenario?
A) Two Reporting Entities
B) Three Reporting Entities
C) One Reporting Entity
D) Four Reporting Entities
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