TESTBANKFOR . .
Survey ofAccounting, 7th Edition by Edmonds
. . . . . .
Chapter 1-16
.
Answers Included
.
Chap 01 7e Edmonds
. . .
1) Which.of.the.following.groups.has.the.primary.responsibility.for.establishing.generally.acc
epted.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.Heri
tage'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.repa
yment.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.acco
unting.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.
,6) Financial.accounting.standards.are.known.collectively.as.GAAP..What.does.that.acronym.stan
d.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.stan
d.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.Wheel
s..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
,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.yea
r..Which.of.the.following.appropriately.reflects.the.cash.transactions.between.these.reporting.en
tities?
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.inve
sted.$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.Sauc
e-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
, 12) John.Hamilton.borrowed.$540,000.from.Stone.Creek.Bank.to.open.a.new.restaurant.called.Sauc
e-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.entit
ies?
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
C) Option.C
D) Option.D
13) Which.of.the.following.is.an.accurate.definition.of.the.term.“asset?”
A) An.obligation.to.creditors
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
14) Which.of.the.following.is.(are).source(s).of.assets.to.a.business?
A) Creditors
B) Investors
C) Operations
D) All.the.answers.represent.sources.of.assets.
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.
D) Liabilities,.common.stock,.or.retained.earnings.must.increase.
Survey ofAccounting, 7th Edition by Edmonds
. . . . . .
Chapter 1-16
.
Answers Included
.
Chap 01 7e Edmonds
. . .
1) Which.of.the.following.groups.has.the.primary.responsibility.for.establishing.generally.acc
epted.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.Heri
tage'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.repa
yment.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.acco
unting.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.
,6) Financial.accounting.standards.are.known.collectively.as.GAAP..What.does.that.acronym.stan
d.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.stan
d.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.Wheel
s..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
,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.yea
r..Which.of.the.following.appropriately.reflects.the.cash.transactions.between.these.reporting.en
tities?
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.inve
sted.$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.Sauc
e-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
, 12) John.Hamilton.borrowed.$540,000.from.Stone.Creek.Bank.to.open.a.new.restaurant.called.Sauc
e-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.entit
ies?
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
C) Option.C
D) Option.D
13) Which.of.the.following.is.an.accurate.definition.of.the.term.“asset?”
A) An.obligation.to.creditors
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
14) Which.of.the.following.is.(are).source(s).of.assets.to.a.business?
A) Creditors
B) Investors
C) Operations
D) All.the.answers.represent.sources.of.assets.
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.
D) Liabilities,.common.stock,.or.retained.earnings.must.increase.
