Solution Manual For Financial Accounting, 13th Edition by C William Thomas and Wendy M. Tietz, Verified Chapters 1 - 12, Complete Newest Version

TEST BANK for Financial Accounting
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13th Edition j5




by C William Thomas and Wendy M. Tietz
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Verified Chapter's 1 - 12 | Complete
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,TABLE OF CONTENTS j5 j5 j5




1. The Financial Statements
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2. Transaction Analysis
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3. Accrual Accounting and Income
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4. Internal Control and Cash
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5. Receivables and Revenue
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6. Inventory and Cost of Goods Sold
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7. Plant Assets, Natural Resources, and Intangibles
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8. Current and Contingent Liabilities
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9. Long-Term Liabilities
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10. Stockholders' Equity
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11. The Statement of Cash Flows
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12. Financial Statement Analysis
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,1. The Financial Statements
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Full Test Bank for Financial Accounting 13th Edition C. William Thomas, Wendy M Tietz
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Financial Accounting, 13e (Thomas/Tietz)
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Chapter 1 The Financial Statements
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Learning Objective 1-1j5 j5




1) Accounting is an information system that measures business activities
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.Answer: TRUE
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Legal/Regulatory5j
AICPAj5Functional:j 5 Measurement

2) Bookkeeping is a mechanical part of accounting
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.Answer: TRUE
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Legal/Regulatory5j
AICPAj5Functional:j 5 Measurement

3) Accounting is often called the language of business
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.Answer: TRUE
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Legal/Regulatory5j
AICPAj5Functional:j 5 Measurement

4) Accounting produces financial statements, which report information about a business
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.Answer: TRUE
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5 Persp:j 5 Legal/Regulatory
AICPAj5Functional:j 5 Measurement,j5Reporting

5) The accounting process begins and ends with people making decisions
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.Answer: TRUE
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Legal/Regulatory5j
AICPAj5Functional:j 5 Measurement

, 6) Accounting information is used by investors and creditors, but not by regulatory bodies
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.Answer: FALSE
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Explanation: It is used by individuals, investors, creditors, nonprofits, and regulatory bodies.
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Industryj5Sector,j5Legal/Regulatory5A
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Aj5Functional:j 5 Measurement,j5Reporting

7) Since Habitat for Humanity is not concerned about making a profit, the entity does not need to u
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seaccounting information.
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Answer: FALSE j 5


Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Industryj5Sector,j5Legal/Regulatory5A
j ICP
Aj5Functional:j 5 Measurement,j5Reporting

8) The business records of a sole proprietorship should include the proprietor's personal finance
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s.Answer: FALSE
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Legal/Regulatory5j
AICPAj5Functional:j 5 Measurement

9) A partnership is a taxpaying entity
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.Answer: FALSE
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Legal/Regulatory5j
AICPAj5Functional:j 5 Measurement

10) Stockholders have no personal obligation for the corporation's debts
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.Answer: TRUE
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Diff:j51
LO:j 5 1-1
AACSB:j 5 Reflectivej5Thinking
AICPAj5Busj5Persp:j 5 Legal/Regulatory5j
AICPAj5Functional:j 5 Measurement




11) Accounting:
A) measures business activities. j5 j5


B) processes data into reports and communicates the data to decision makers.
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C) is often called the language of business.
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D) is all of the above
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.Answer: D
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Diff:j52
LO:j 5 1-1