TEST BANK
Fundamental Accounting Principles | 25th Edition
by John J. Wild and Ken W. Shaw
SC
O
R
EG
U
ID
ES
, Table of Content
Fundamental Accounting Principles, 25th Edition
Chapter 1: Accounting in Business
Chapter 2: Analyzing and Recording Transactions
Chapter 3: Adjusting Accounts for Financial Statements
Chapter 4: Completing the Accounting Cycle
Chapter 5: Accounting for Merchandising Operations
SC
Chapter 6: Inventories and Cost of Sales
Chapter 7: Accounting Information Systems
Chapter 8: Cash, Fraud, and Internal Control
O
Chapter 9: Accounting for Receivables
Chapter 10: Plant Assets, Natural Resources, and Intangibles
R
Chapter 11: Current Liabilities and Payroll Accounting
Chapter 12: Accounting for Partnerships
EG
Chapter 13: Accounting for Corporations
Chapter 14: Long-Term Liabilities
Chapter 15: Investments
Chapter 16: Reporting the Statement of Cash Flows
U
Chapter 17: Analysis of Financial Statements
Chapter 18: Managerial Accounting Concepts and Principles
ID
Chapter 19: Job Order Costing
Chapter 20: Process Costing
Chapter 21: Cost Behavior and Cost-Volume-Profit Analysis
ES
Chapter 22: Master Budgets and Planning
Chapter 23: Flexible Budgets and Standard Costs
Chapter 24: Performance Measurement and ResponsibilityAccounting
Chapter 25: Relevant Costs for Managerial Decisions
Chapter 26: Capital Budgeting and Investment Analysis
, Chapter 01 Accounting in Business
MULTIPLE CHOICE
QUESTIONS
1) Accounting is an information and measurement system that identifies, records, and communicates
relevant, reliable, and comparable information about an organization's business activities.
A) True
B) False
Answer: A
SC
Explanation:
Diff: 1
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
O
2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or
electronically. This is just one part of accounting.
R
A) True
B) False
Answer: A
EG
Explanation:
Diff: 1
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
U
3) An accounting system captures relevant data about transactions and then classifies, records, and
reports data.
ID
A) True
B) False
Answer: A
Explanation:
ES
Diff: 1
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
1
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, 4) Financial accounting is the area of accounting aimed at serving external users by providing them
with general-purpose financial statements.
A) True
B) False
Answer: A
Explanation:
Diff: 1
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
SC
AACSB: Communication
AICPA: BB Industry; FN Decision Making
5) Internal operating activities include research and development, distribution, and human resources.
A) True
B) False
O
Answer: A
Explanation:
Diff: 1
Topic: Users of Accounting Information
R
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
EG
6) The primary objective of managerial accounting is to provide general purpose financial statements
to help external users analyze and interpret an organization's activities.
A) True
B) False
Answer: B
U
Explanation:
Diff: 1
Topic: Users of Accounting Information
ID
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
ES
2
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Fundamental Accounting Principles | 25th Edition
by John J. Wild and Ken W. Shaw
SC
O
R
EG
U
ID
ES
, Table of Content
Fundamental Accounting Principles, 25th Edition
Chapter 1: Accounting in Business
Chapter 2: Analyzing and Recording Transactions
Chapter 3: Adjusting Accounts for Financial Statements
Chapter 4: Completing the Accounting Cycle
Chapter 5: Accounting for Merchandising Operations
SC
Chapter 6: Inventories and Cost of Sales
Chapter 7: Accounting Information Systems
Chapter 8: Cash, Fraud, and Internal Control
O
Chapter 9: Accounting for Receivables
Chapter 10: Plant Assets, Natural Resources, and Intangibles
R
Chapter 11: Current Liabilities and Payroll Accounting
Chapter 12: Accounting for Partnerships
EG
Chapter 13: Accounting for Corporations
Chapter 14: Long-Term Liabilities
Chapter 15: Investments
Chapter 16: Reporting the Statement of Cash Flows
U
Chapter 17: Analysis of Financial Statements
Chapter 18: Managerial Accounting Concepts and Principles
ID
Chapter 19: Job Order Costing
Chapter 20: Process Costing
Chapter 21: Cost Behavior and Cost-Volume-Profit Analysis
ES
Chapter 22: Master Budgets and Planning
Chapter 23: Flexible Budgets and Standard Costs
Chapter 24: Performance Measurement and ResponsibilityAccounting
Chapter 25: Relevant Costs for Managerial Decisions
Chapter 26: Capital Budgeting and Investment Analysis
, Chapter 01 Accounting in Business
MULTIPLE CHOICE
QUESTIONS
1) Accounting is an information and measurement system that identifies, records, and communicates
relevant, reliable, and comparable information about an organization's business activities.
A) True
B) False
Answer: A
SC
Explanation:
Diff: 1
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
O
2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or
electronically. This is just one part of accounting.
R
A) True
B) False
Answer: A
EG
Explanation:
Diff: 1
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
U
3) An accounting system captures relevant data about transactions and then classifies, records, and
reports data.
ID
A) True
B) False
Answer: A
Explanation:
ES
Diff: 1
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
1
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, 4) Financial accounting is the area of accounting aimed at serving external users by providing them
with general-purpose financial statements.
A) True
B) False
Answer: A
Explanation:
Diff: 1
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
SC
AACSB: Communication
AICPA: BB Industry; FN Decision Making
5) Internal operating activities include research and development, distribution, and human resources.
A) True
B) False
O
Answer: A
Explanation:
Diff: 1
Topic: Users of Accounting Information
R
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
EG
6) The primary objective of managerial accounting is to provide general purpose financial statements
to help external users analyze and interpret an organization's activities.
A) True
B) False
Answer: B
U
Explanation:
Diff: 1
Topic: Users of Accounting Information
ID
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
ES
2
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
