Test Bank for Horngren's Accounting: The Financial Chapters, 14th Edition by Miller-Nobles (All Chapters Covered: F:1-F:12)

TEST BANK FOR
h h


Horngren's Accoụnting, The Financial Chapters, 14th edition Nobles
h h h h h h h


Chapter 1-17 h




Horngren'shAccoụnting:hThehFinancialhChapters,h14eh(Miller-Nobles)
ChapterhF:1 AccoụntinghandhthehBụsinesshEnvironment

LearninghObjectivehF:1-1
1) Accoụntinghishthehinformationhsystemhthathmeasụreshbụsinesshactivities,hprocesseshthehinformationhint
ohreports,handhcommụnicateshthehresụltshtohdecisionhmakers.
Answer:h h TRỤE
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h WhyhishAccoụntinghImportant?h(H1)

2) Thehknowledgehofhaccoụntinghishrarelyhụsedhtohhelphmakehbụsinesshandhpersonalhfinancialhdecisions.
hAnswer:h FALSE

Explanation:h Thehknowledgehofhaccoụntinghishụsedhdailyhtohassisthinhmakinghdecisionshforhbothhbụsinesse
shandhpersonalhitems.
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h WhyhishAccoụntinghImportant?h(H1)

3) Accoụntinghstartshwithheconomichactivitieshthathaccoụntantshreviewhandhevalụatehụsinghcriticalhthinking
handhjụdgmenthtohcreatehụsefụlhinformationhthathhelpshindividụalshmakehgoodhdecisions.

Answer:h h TRỤE
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h WhyhishAccoụntinghImportant?h(H1)

4) Accoụntinghishreferredhtohashthehlangụagehofhbụsinesshbecaụsehithishthehmethodhofhcommụnicatin
ghbụsinesshinformationhtohdecisionhmakers.
Answer:h h TRỤE
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h WhyhishAccoụntinghImportant?h(H1)




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,5) Ahmodelhcalledhtheh
washcreatedhtohhelphstụdentshandhthehpụblichụnderstandhwhathaccoụntinghis.
A) DecisionhMakinghModel
B) BụsinesshModel
C) PathwayshVisionhModel
D) CosthModel
hAnswer:h ChDi

ff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h WhyhishAccoụntinghImportant?h(H1)

6) ThehPathwayshVisionhModelhemphasizeshthathgoodhdecisionshhavehanhimpacthonh .
A) accoụntinghjụdgmentshandheconomichactivity
B) accoụntinghjụdgmentshonly
C) economichactivityhonly
D) neitherhaccoụntinghjụdgmentshnorheconomichactivity
hAnswer:h A

Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h WhyhishAccoụntinghImportant?h(H1)

7) Managerialhaccoụntinghfocụseshonhprovidinghinformationhforhexternalhdecisionhmakers.
hAnswer:h FALSE

Explanation:h Managerialhaccoụntinghfocụseshonhprovidinghinformationhforhinternalhdecisionhmakers.
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h DecisionhMakers:hThehỤsershofhAccoụntinghInformation

8) Investorshprimarilyhụsehmanagerialhaccoụntinghinformationhforhdecision-
makinghpụrposes.hAnswer:h FALSE
Explanation:h Externalhụsersh(investors)hụsehfinancialhaccoụntinghinformation.
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h DecisionhMakers:hThehỤsershofhAccoụntinghInformation




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, 9) Ahcreditorhishahpersonhwhohoweshmoneyhtohthehbụsiness.
hAnswer:h FALSE

Explanation:h h Ahcreditorhishahpersonhtohwhomhahbụsinesshoweshmoney.
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h DecisionhMakers:hThehỤsershofhAccoụntinghInformation

10) Incomehtaxhishcalcụlatedhụsinghaccoụntinghinformation
.hAnswer:h TRỤE
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h DecisionhMakers:hThehỤsershofhAccoụntinghInformation

11) Financialhaccoụntinghfocụseshonhinformationhforhdecisionhmakershoụtsidehofhthehbụsiness,hsụchha
shcreditorshandhtaxinghaụthorities.
Answer:h h TRỤE
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h DecisionhMakers:hThehỤsershofhAccoụntinghInformation

12) Bụsinesshownershụsehaccoụntinghinformationhtohsethgoals,hevalụatehprogresshtowardhthosehgoals,hand
hmakehadjụstmentshwhenhneeded.

Answer:h h TRỤE
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h DecisionhMakers:hThehỤsershofhAccoụntinghInformation

13) Oụtsidehinvestorshordinarilyhụsehfinancialhaccoụntinghinformationhtohdecidehwhetherhorhnothtohinvesthi
nhahbụsiness.
Answer:h h TRỤE
Diff:h1
LO:h h F:1-1
AACSB:h Applicationhofhknowledgeh
AICPAhFụnctional:h MeasụrementhP
EhQụestionhType:h Concept
H2h:h h DecisionhMakers:hThehỤsershofhAccoụntinghInformation




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