Test Bank & Solution Manual for Accounting What the Numbers Mean 13th Edition By David Marshall

Test Bank & Solution Manual for Accounting What the Numbers Mean 13th Edition
By David Marshall


MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Which of the following entities wouldnot require accounting information pertaining to
their economic activities?

1)


A) Social clubs
B) Not-for-profit entities
C) State governments
D) Small businesses
E) All of these entities require accounting information.



Question Details
Accessibility : Keyboard Navigation
Learning Objective : 01-02 Identify who the users of accounting information are and explain why they
Topic : What Is Accounting?
Difficulty : 1 Easy
Bloom's : Remember
AACSB : Analytical Thinking
AICPA : BB Industry
AICPA : FN Reporting
Type : Static
Gradable : automatic
Accessibility : Screen Reader Compatible



2) The authoritative financial accounting standards-setting body in the United States is
presently the:

2)


A) Public Company Accounting Oversights Board (PCAOB)
B) Financial Accounting Standards Board (FASB)
C) Accounting Principles Board (APB)
D) Securities and Exchange Commission (SEC)
E) International Accounting Standards Board (IASB)


Version 1 1

,Question Details
Accessibility : Keyboard Navigation
Difficulty : 1 Easy
Bloom's : Remember
AACSB : Analytical Thinking
AICPA : BB Industry
AICPA : FN Reporting
Learning Objective : 01-05 Explain the role that the FASB plays in the development of financial accou
Topic : How Has Accounting Developed?
Type : Static
Gradable : automatic
Accessibility : Screen Reader Compatible



3) Which of the following statements about the Financial Accounting Standards Board is
correct?

3)


A) The FASB follows a due process procedure that permits input from interested parties
before an Accounting Standards Update (ASU) is issued.
B) The FASB is controlled by the American Institute of CPAs.
C) The FASB is an agency of the Federal government.
D) The FASB has the authority to fine a noncompliant firm.



Question Details
Accessibility : Keyboard Navigation
AACSB : Analytical Thinking
Learning Objective : 01-05 Explain the role that the FASB plays in the development of financial accou
Topic : How Has Accounting Developed?
Difficulty : 2 Medium
Bloom's : Understand
AICPA : BB Critical Thinking
AICPA : FN Decision Making
Type : Static
Gradable : automatic
Accessibility : Screen Reader Compatible



4) Major classifications of accounting activity wouldnot include:

4)


Version 1 2

, A) financial accounting, internal auditing, public accounting.
B) internal auditing, governmental accounting, managerial accounting.
C) financial accounting, national accounting, cost accounting.
D) auditing, income tax accounting, governmental accounting.



Question Details
Accessibility : Keyboard Navigation
Topic : What Is Accounting?
Difficulty : 1 Easy
Bloom's : Remember
AACSB : Analytical Thinking
AICPA : BB Industry
AICPA : FN Decision Making
Learning Objective : 01-03 Identify the variety of professional services that accountants provide.
Type : Static
Gradable : automatic
Accessibility : Screen Reader Compatible



5) Which of the following isnot an example of a decision or informed judgment that a
potential investor would make from accounting information?

5)


A) A forecast of dividends
B) Assessment of risk that a company may have more debt than it can repay if the
economy enters a recession
C) Future profitability based on past profitability
D) Probability of success of a new product development




Version 1 3

, Question Details
Accessibility : Keyboard Navigation
Learning Objective : 01-02 Identify who the users of accounting information are and explain why they
Topic : What Is Accounting?
Difficulty : 2 Medium
Bloom's : Understand
AICPA : BB Critical Thinking
AICPA : FN Decision Making
AACSB : Reflective Thinking
Type : Static
Gradable : automatic
Accessibility : Screen Reader Compatible



6) Which of the following isnot an example of a decision or informed judgment that a
potential employee could make from accounting information?

6)


A) The extent of the company's commitment to a research program
B) Personnel turnover statistics (i.e., hiring and terminations)
C) Probability of the company's ability to make profit sharing plan contributions in the
future
D) Assessment of the risk that the company may become bankrupt in the near future



Question Details
Accessibility : Keyboard Navigation
Learning Objective : 01-02 Identify who the users of accounting information are and explain why they
Topic : What Is Accounting?
Difficulty : 2 Medium
Bloom's : Understand
AICPA : BB Critical Thinking
AICPA : FN Decision Making
AACSB : Reflective Thinking
Type : Static
Gradable : automatic
Accessibility : Screen Reader Compatible



7) Which of the following are qualified to express an auditor's opinion about an entity's
financial statements?



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