TEST BANK for Financial Accounting 16th Edition Carl Warren | Solutions & Practice Questions

TEST BANK j


FinancialjAccounting

byjCarljS.jWarren,jChristinejJonick,jJenniferjSchneider
16thjEdition.




FULL TEST BANK!!!
j j

,Truej/jFalsejAnswers

1. Ajmerchandisingjbusinessjbuysjproductsjfromjotherjbusinessesjtojselljtojcustomers.
a. True
b. False
ANSWER: True

2. Thejrolejofjaccountingjisjtojprovidejmanyjdifferentjusersjwithjfinancialjinformationjtojmakejeconomicjdecisions.
a. True
b. False
ANSWER: True

3. Accountingjinformationjusersjneedjreportsjaboutjthejeconomicjactivitiesjandjconditionjofjbusinesses.
a. True
b. False
ANSWER: True

4. Managerialjaccountingjinformationjisjusedjbyjexternaljandjinternaljusersjequally.
a. True
b. False
ANSWER: False

5. Seniorjexecutivesjcannotjbejcriminallyjprosecutedjforjthejwrongdoingsjtheyjcommitjonjbehalfjofjthejcompaniesjwherejthe
yjwork.
a. True
b. False
ANSWER: False

6. Financialjaccountingjprovidesjinformationjtojalljusers,jwhilejthejmainjfocusjforjmanagerialjaccountingjisjtojprovidejinf
ormationjtojthejmanagement.
a. True
b. False
ANSWER: True

,7. Properjethicaljconductjimpliesjthatjyoujonlyjconsiderjwhat'sjinjyourjbestjinterest.
a. True
b. False
ANSWER: False

8. Somejofjthejmajorjfraudulentjactsjcommittedjbyjseniorjexecutivesjstartedjasjwhatjtheyjconsideredjtojbejsmalljethicaljlap
sesjthatjgrewjoutjofjcontrol.
a. True
b. False
ANSWER: True

9. Ajbusinessjisjanjorganizationjinjwhichjbasicjresourcesjorjinputs,jsuchjasjmaterialsjandjlabor,jarejassembledjandjpro
cessedjtojprovidejoutputsjinjthejformjofjgoodsjorjservicesjtojcustomers.
a. True
b. False
ANSWER: True

10. Twojfactorsjthatjtypicallyjleadjtojethicaljviolationsjarejrelevancejandjtimelinessjofjaccountingjinformation.
a. True
b. False
ANSWER: False

11. Financialjaccountingjreportsjarejrelevantjonlyjtojusersjwithinjthejbusiness.
a. True
b. False
ANSWER: False

12. ThejSarbanes-OxleyjActjestablishedjstandardsjforjcorporatejresponsibilityjandjdisclosure.
a. True
b. False
ANSWER: True

13. Thejmainjobjectivejforjalljbusinessjisjtojmaximizejunrealizedjprofits.
a. True
b. False
ANSWER: False

14. Thejprimaryjrolejofjaccountingjisjtojdeterminejthejamountjofjtaxesjajbusinessjwilljbejrequiredjtojpayjtojtaxingjenti
ties.
a. True
b. False
ANSWER: False

15. Thejbasicjdifferencejbetweenjmanufacturingjandjmerchandisingjcompaniesjisjthejcompletionjleveljofjthejproductsjth
eyjpurchasejforjresalejtojcustomers.
a. True
b. False
ANSWER: True

, 16. Anjexamplejofjanjexternaljuserjofjaccountingjinformationjisjthejfederaljgovernment.
a. True
b. False
ANSWER: True

17. Proprietorshipsjarejownedjbyjonejownerjandjprovidejonlyjservicesjtojtheirjcustomers.
a. True
b. False
ANSWER: False

18. Aboutj90%jofjthejbusinessesjinjthejUnitedjStatesjarejorganizedjasjcorporations.
a. True
b. False
ANSWER: False

19. ThejFinancialjAccountingjStandardsjBoardj(FASB)jisjthejauthoritativejbodyjthatjhasjprimaryjresponsibilityjforjde
velopingjaccountingjprinciples.
a. True
b. False
ANSWER: True

20. Thejcostjconceptjisjthejbasisjforjenteringjthejpurchasejpricejintojthejaccountingjrecords.
a. True
b. False
ANSWER: True

21. Thejunitjofjmeasurementjconceptjrequiresjthatjeconomicjdatajbejrecordedjinjdollars.
a. True
b. False
ANSWER: True

22. Ifjajbuildingjisjappraisedjforj$85,000,jitjisjofferedjforjsalejatj$90,000,jandjthejbuyerjpaysj$80,000jcashjforjit,jthejbuy
erjwouldjrecordjthejbuildingjatj$85,000.
a. True
b. False
ANSWER: False

23. Thejfinancialjstatementsjofjajproprietorshipjshouldjincludejthejowner'sjpersonaljassetsjandjliabilities.
a. True
b. False
ANSWER: False

24. NojsignificantjdifferencesjexistjbetweenjthejaccountingjstandardsjissuedjbyjthejFASBjandjthejIASB.
a. True
b. False
ANSWER: False

25. Generallyjacceptedjaccountingjprinciplesjregulatejhowjandjwhatjfinancialjinformationjisjreportedjbyjbusinesses.