Test Bank Fundamental
Accounting Principles 18th
Canadian Edition (Volume 1) By
Kermit Larson, Heidi Dieckmann,
John Harris, Erin Creagh (All
Chapters 1-9, 100% Original
Verified, A+ Grade)
This is The Only Original and
Complete Test Bank for 18th
Canadian Edition (Volume 1), All
Other Files in the Market are
Fake/Old/Wrong Edition.
Includes MCQs and True False
Answer at the end of each Chapter.
,Chapter 1_ Accounting in Business
Student name:__________
1) Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
⊚ true
⊚ false
2) Accounting information helps people make better decisions about the performance of a
business.
⊚ true
⊚ false
3) The main objective of accounting is to help people to invest in new products and businesses.
⊚ true
⊚ false
4) "Recordkeeping" is another term for "accounting".
⊚ true
⊚ false
5) A sole proprietorship is a business owned by one or more persons.
⊚ true
⊚ false
6) A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business license.
⊚ true
⊚ false
7) Ownership of a corporation is divided into units called shares.
⊚ true
⊚ false
,Chapter 1_ Accounting in Business
8) In the partnership form of business, the owners of a business are called shareholders.
⊚ true
⊚ false
9) Unlimited liability is an advantage for both a proprietorship and a partnership.
⊚ true
⊚ false
10) Although a proprietorship is not a separate legal entity, a partnership is.
⊚ true
⊚ false
11) A corporation is responsible for its actions and any debts incurred. It can enter into its own
contracts, and it can buy, own, and sell property.
⊚ true
⊚ false
12) Non-business organizations often operate educational and religious services for profit.
⊚ true
⊚ false
13) Sole proprietorships and partnerships are not subject to income tax in Canada.
⊚ true
⊚ false
14) External users include lenders such as banks, and other creditors such as suppliers and
bondholders.
⊚ true
⊚ false
, Chapter 1_ Accounting in Business
15) Internal users include creditors, shareholders, internal auditors, and managers.
⊚ true
⊚ false
16) Managerial accounting provides special-purpose reports customized to meet the information
needs of internal users.
⊚ true
⊚ false
17) Internal operating functions include research and development, distribution, and human
resources.
⊚ true
⊚ false
18) Career opportunities in accounting include auditing, forensic accounting, and tax planning.
⊚ true
⊚ false
19) Budgeting is the process of developing formal plans for an organization's future activities.
⊚ true
⊚ false
20) At the request of the Board of Directors, internal auditors perform the audit function to
protect shareholder interests.
⊚ true
⊚ false
21) The purpose of an audit is to add credibility to the financial statements.
⊚ true
⊚ false
Accounting Principles 18th
Canadian Edition (Volume 1) By
Kermit Larson, Heidi Dieckmann,
John Harris, Erin Creagh (All
Chapters 1-9, 100% Original
Verified, A+ Grade)
This is The Only Original and
Complete Test Bank for 18th
Canadian Edition (Volume 1), All
Other Files in the Market are
Fake/Old/Wrong Edition.
Includes MCQs and True False
Answer at the end of each Chapter.
,Chapter 1_ Accounting in Business
Student name:__________
1) Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
⊚ true
⊚ false
2) Accounting information helps people make better decisions about the performance of a
business.
⊚ true
⊚ false
3) The main objective of accounting is to help people to invest in new products and businesses.
⊚ true
⊚ false
4) "Recordkeeping" is another term for "accounting".
⊚ true
⊚ false
5) A sole proprietorship is a business owned by one or more persons.
⊚ true
⊚ false
6) A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business license.
⊚ true
⊚ false
7) Ownership of a corporation is divided into units called shares.
⊚ true
⊚ false
,Chapter 1_ Accounting in Business
8) In the partnership form of business, the owners of a business are called shareholders.
⊚ true
⊚ false
9) Unlimited liability is an advantage for both a proprietorship and a partnership.
⊚ true
⊚ false
10) Although a proprietorship is not a separate legal entity, a partnership is.
⊚ true
⊚ false
11) A corporation is responsible for its actions and any debts incurred. It can enter into its own
contracts, and it can buy, own, and sell property.
⊚ true
⊚ false
12) Non-business organizations often operate educational and religious services for profit.
⊚ true
⊚ false
13) Sole proprietorships and partnerships are not subject to income tax in Canada.
⊚ true
⊚ false
14) External users include lenders such as banks, and other creditors such as suppliers and
bondholders.
⊚ true
⊚ false
, Chapter 1_ Accounting in Business
15) Internal users include creditors, shareholders, internal auditors, and managers.
⊚ true
⊚ false
16) Managerial accounting provides special-purpose reports customized to meet the information
needs of internal users.
⊚ true
⊚ false
17) Internal operating functions include research and development, distribution, and human
resources.
⊚ true
⊚ false
18) Career opportunities in accounting include auditing, forensic accounting, and tax planning.
⊚ true
⊚ false
19) Budgeting is the process of developing formal plans for an organization's future activities.
⊚ true
⊚ false
20) At the request of the Board of Directors, internal auditors perform the audit function to
protect shareholder interests.
⊚ true
⊚ false
21) The purpose of an audit is to add credibility to the financial statements.
⊚ true
⊚ false
