Test Bank for Survey of Accounting 7e 7th Edition by Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair and Bor-Yi Tsay. Chapter 1 An Introduction to Accounting Chapter 2 Accounting for Accruals and Deferrals Chapter 3 Accounting for Merchandising Businesses Chapter 4 Internal Control...
Thank you for Choosing and shopping with us. We really appreciate your review. If you're Looking for Any Study Materials (exams, test bank, ATI, Hesi etc.) Check us out on www.medtestbanks.com. We’re looking forward to hear from you soon!
Verkoper
Volgen
medpapers
Ontvangen beoordelingen
Voorbeeld van de inhoud
MEDEXCELLENCE
All Chapters
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
E
2) The Heritage Company is a manufacturer of office furniture. Which term best describes
C
Heritage's role in society?
A) Business
N
B) Regulatory agency
C) Consumer
LE
D) Resource owner
EL
3) Which resource providers lend financial resources to a business with the expectation of
repayment with interest?
A) Consumers
C
B) Creditors
C) Investors
EX
D) Owners
4) Which type of accounting information is intended to satisfy the needs of external users of
ED
accounting information?
A) Cost accounting
B) Managerial accounting
C) Tax accounting
M
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.
1
,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
E
C) International Accountability Standards Bureau
D) International Accounting and Sustainability Board
C
N
8) Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Wooden
LE
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
EL
C) Three reporting entities
D) Four reporting entities
C
EX
ED
M
2
,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
E
increase decrease
A) Option A
C
B) Option B
C) Option C
N
D) Option D
LE
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
EL
A) one reporting entity.
B) two reporting entities.
C) three reporting entities.
C
D) four reporting entities.
EX
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?
ED
A) Two reporting entities
B) Three reporting entities
C) One reporting entity
D) Four reporting entities
M
3
, 12) John Hamilton borrowed $540,000 from Stone Creek Bank to open a new restaurant called
Sauce-It-Up. John transferred $486,000 of the cash he borrowed to the Company on the first
day of the year. Which of the following appropriately reflects the cash transactions between
these reporting entities?
John Hamilton Sauce-It-Up Stone Creek Bank
A. $ 54,000 increase $ 486,000 increase $ 540,000 decrease
B. $ 540,000 increase $ 486,000 increase $ 540,000 decrease
C. $ 540,000 decrease $ 540,000 increase $ 540,000 decrease
D. $ 486,000 increase $ 54,000 increase $ 540,000 decrease
A) Option A
B) Option B
E
C) Option C
D) Option D
C
N
13) Which of the following is an accurate definition of the term “asset?”
A) An obligation to creditors
LE
B) A resource that will be used to produce revenue
C) A transfer of wealth from the business to its stockholders
D) A sacrifice incurred from operating the business
EL
14) Which of the following is (are) source(s) of assets to a business?
C
A) Creditors
B) Investors
EX
C) Operations
D) All the answers represent sources of assets.
ED
15) If total assets decrease, then which of the following statements is true?
A) Liabilities must increase and retained earnings must decrease.
B) Common stock must decrease and retained earnings must increase.
C) Liabilities, common stock, or retained earnings must decrease.
M
D) Liabilities, common stock, or retained earnings must increase.
4
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper medpapers. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €19,65. Je zit daarna nergens aan vast.
