SOLUTION MANUAL & TEST BANK
ACCOUNTING: WHAT THE NUMBERS MEAN
Version 1 1
,TABLE OF CONTEST
1. Accounting—Present And Past
PART ONE: FINANCIAL ACCOUNTING
2. Financial Statements And Accounting Concepts/Principles
3. Fundamental Interpretations Made From Financial Statement Data
4. The Bookkeeping Process And Transaction Analysis
5. Accounting For And Presentation Of Current Assets
6. Accounting For And Presentation Of Property, Plant, And Equipment, And Other Noncurrent Assets
7. Accounting For And Presentation Of Liabilities
8. Accounting For And Presentation Of Stockholders‘ Equity
9. The Income Statement And The Statement Of Cash Flows
10. Corporate Governance, Notes To The Financial Statements, And Other Disclosures
11. Financial Statement Analysis
PART TWO: MANAGERIAL ACCOUNTING
12. Managerial Accounting And Cost–Volume–Profit Relationships
13. Cost Accounting And Reporting
14. Cost Planning
15. Cost Control
16. Costs For Decision Making
Version 1 2
,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 3
,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 4
, 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 5
,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
Futur
e 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?
Version 1 6
, 7)
A) A Comptroller
B) A Certified Management Accountant
C) A Certified Internal Auditor
D) A Certified Public Accountant
Question Details
Accessibility : Keyboard Navigation
Topic : What Is Accounting?
AICPA : BB Industry
AICPA : FN Reporting
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 01-03 Identify The Variety Of Professional Services That Accountants Provide.
AACSB : Communication
Type : Static
Gradable :
Automatic
Accessibility : Screen Reader Compatible
8) Which Classification Of Accounting Is Most Concerned With The Use Of
Economic And Financial Information To Plan And Control Many Of The Activities Of
The Entity?
8)
A) Financial Accounting
B) Auditing / Public Accounting
C) Managerial Accounting
D) Income Tax Accounting
Version 1 7
,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
9) An Unqualified Auditors' Opinion About An Entity's Financial Statements:
9)
A) Is A Clean Bill Of Health.
B) Means That All Of The Entity's Transactions During The Audited Period Were Checked
Out.
C) Guarantees That The Entity Was Not Involved In Or The Victim Of Any Fraudulent
Activities During The Audited Period.
D) States That They Are Presented In Conformity With Accounting Principles
Generally Accepted In The United States.
Question Details
Accessibility : Keyboard Navigation
AICPA : BB Industry
AICPA : FN Reporting
Topic : How Has Accounting Developed?
Difficulty : 2 Medium
Bloom's : Understand
AACSB : Communication
Learning Objective : 01-06 Generalize About How Financial Reporting Standards Evolve.
Type : Static
Gradable : Automatic
Accessibility : Screen Reader Compatible
10) Cost Accounting Is A Subset Of Which Of The Following?
10)
Version 1 8
, A) Cost Analysis
B) Managerial Accounting
C) Internal Auditing
D) Public Auditing
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
11) The Officer Of A Corporation Responsible For The Firm's Published Financial
Statements Would Be Most Concerned About Pronouncements Of The:
11)
A) FASB.
B) AICPA.
C) GASB.
D) SEC.
E) IRS.
Version 1 9
, 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
12) Which Of The Following Isnot A Characteristic Or Limitation Of The Kind Of
Information That Financial Reporting By Business Enterprises Can Provide?
12)
A) The Information Results In Approximate, Rather Than Exact, Measures.
B) The Information Largely Reflects The Financial Effects Of Transactions That Have
Already Taken Place.
C) The Information Is Provided And Used At A Cost.
D) All Of The Answers Are Characteristics Or Limitations Of The Kind Of
Information That Financial Reporting By Business Enterprises Can Provide.
Question Details
Accessibility : Keyboard Navigation
AICPA : FN Reporting
Topic : How Has Accounting Developed?
Difficulty : 2 Medium
Bloom's : Understand
AICPA : BB Critical Thinking
AACSB : Communication
Learning Objective : 01-09 Summarize The Objective Of General-Purpose Financial Reporting.
Type : Static
Gradable : Automatic
Accessibility : Screen Reader Compatible
13) The Ethical Concept Of Independence Means That An Accountant Employed:
Version 1 10
ACCOUNTING: WHAT THE NUMBERS MEAN
Version 1 1
,TABLE OF CONTEST
1. Accounting—Present And Past
PART ONE: FINANCIAL ACCOUNTING
2. Financial Statements And Accounting Concepts/Principles
3. Fundamental Interpretations Made From Financial Statement Data
4. The Bookkeeping Process And Transaction Analysis
5. Accounting For And Presentation Of Current Assets
6. Accounting For And Presentation Of Property, Plant, And Equipment, And Other Noncurrent Assets
7. Accounting For And Presentation Of Liabilities
8. Accounting For And Presentation Of Stockholders‘ Equity
9. The Income Statement And The Statement Of Cash Flows
10. Corporate Governance, Notes To The Financial Statements, And Other Disclosures
11. Financial Statement Analysis
PART TWO: MANAGERIAL ACCOUNTING
12. Managerial Accounting And Cost–Volume–Profit Relationships
13. Cost Accounting And Reporting
14. Cost Planning
15. Cost Control
16. Costs For Decision Making
Version 1 2
,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 3
,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 4
, 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 5
,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
Futur
e 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?
Version 1 6
, 7)
A) A Comptroller
B) A Certified Management Accountant
C) A Certified Internal Auditor
D) A Certified Public Accountant
Question Details
Accessibility : Keyboard Navigation
Topic : What Is Accounting?
AICPA : BB Industry
AICPA : FN Reporting
Difficulty : 2 Medium
Bloom's : Understand
Learning Objective : 01-03 Identify The Variety Of Professional Services That Accountants Provide.
AACSB : Communication
Type : Static
Gradable :
Automatic
Accessibility : Screen Reader Compatible
8) Which Classification Of Accounting Is Most Concerned With The Use Of
Economic And Financial Information To Plan And Control Many Of The Activities Of
The Entity?
8)
A) Financial Accounting
B) Auditing / Public Accounting
C) Managerial Accounting
D) Income Tax Accounting
Version 1 7
,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
9) An Unqualified Auditors' Opinion About An Entity's Financial Statements:
9)
A) Is A Clean Bill Of Health.
B) Means That All Of The Entity's Transactions During The Audited Period Were Checked
Out.
C) Guarantees That The Entity Was Not Involved In Or The Victim Of Any Fraudulent
Activities During The Audited Period.
D) States That They Are Presented In Conformity With Accounting Principles
Generally Accepted In The United States.
Question Details
Accessibility : Keyboard Navigation
AICPA : BB Industry
AICPA : FN Reporting
Topic : How Has Accounting Developed?
Difficulty : 2 Medium
Bloom's : Understand
AACSB : Communication
Learning Objective : 01-06 Generalize About How Financial Reporting Standards Evolve.
Type : Static
Gradable : Automatic
Accessibility : Screen Reader Compatible
10) Cost Accounting Is A Subset Of Which Of The Following?
10)
Version 1 8
, A) Cost Analysis
B) Managerial Accounting
C) Internal Auditing
D) Public Auditing
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
11) The Officer Of A Corporation Responsible For The Firm's Published Financial
Statements Would Be Most Concerned About Pronouncements Of The:
11)
A) FASB.
B) AICPA.
C) GASB.
D) SEC.
E) IRS.
Version 1 9
, 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
12) Which Of The Following Isnot A Characteristic Or Limitation Of The Kind Of
Information That Financial Reporting By Business Enterprises Can Provide?
12)
A) The Information Results In Approximate, Rather Than Exact, Measures.
B) The Information Largely Reflects The Financial Effects Of Transactions That Have
Already Taken Place.
C) The Information Is Provided And Used At A Cost.
D) All Of The Answers Are Characteristics Or Limitations Of The Kind Of
Information That Financial Reporting By Business Enterprises Can Provide.
Question Details
Accessibility : Keyboard Navigation
AICPA : FN Reporting
Topic : How Has Accounting Developed?
Difficulty : 2 Medium
Bloom's : Understand
AICPA : BB Critical Thinking
AACSB : Communication
Learning Objective : 01-09 Summarize The Objective Of General-Purpose Financial Reporting.
Type : Static
Gradable : Automatic
Accessibility : Screen Reader Compatible
13) The Ethical Concept Of Independence Means That An Accountant Employed:
Version 1 10
