Page 1 of 182
,TEST BANK COLLEGE ACCOUNTING: A CONTEMPORARY APPROACH
6TH EDITION
M. David Haddock Jr., John Ellis Price, and Michael J. Farina
All Chapters 1–13
Answer Key and the end of each chapter
CONTENTS
Chapter 1 Accounting: The Language of Business
Chapter 2 Analyzing Business Transactions
Chapter 3 Analyzing Business Transactions Using T Accounts
Chapter 4 The General Journal and the General Ledger
Chapter 5 Adjustments and the Worksheet
Chapter 6 Closing Entries and the Postclosing Trial Balance
Chapter 7 Accounting for Sales, Accounts Receivable, and Cash Receipts
Chapter 8 Accounting for Purchases, Accounts Payable, and Cash Payments
Chapter 9 Cash
Chapter 10 Payroll Computations, Records, and Payment
Chapter 11 Payroll Taxes, Deposits, and Reports
Chapter 12 Accruals, Deferrals, and the Worksheet
Chapter 13 Financial Statements and Closing Procedure
Page 2 of 182
,CHAPTER 1: Accounting: The Language of Business
1. Accounting is commonly referred to as
a. the language of economics
b. the language of business
c. the language of finance
d. the language of marketing
2. The primary purpose of accounting is to
a. prepare marketing strategies
b. provide useful financial information to decision makers
c. manage employee hiring
d. design new products
3. Which of the following is **not** a major area of accounting?
a. Managerial accounting
b. Financial accounting
c. Tax accounting
d. Production accounting
4. Managers and owners inside a company are considered
a. external users of financial information
b. internal users of financial information
c. regulatory users
d. governmental users
5. A Certified Public Accountant (CPA)
Page 3 of 182
, a. is licensed by the state
b. works only for government agencies
c. does not need to follow ethical standards
d. requires no formal education
6. The Certified Bookkeeper (CB) designation is primarily intended for
a. high-level corporate executives
b. individuals who perform full-charge bookkeeping
c. external auditors of large corporations
d. tax attorneys
7. Managerial accounting provides information mainly to
a. investors and creditors
b. internal managers and supervisors
c. government regulatory agencies
d. the general public
8. A bank loan officer is an example of
a. an internal user
b. an external user
c. a production supervisor
d. a company president
9. The three common forms of business entities are
a. service, merchandising, and manufacturing
b. sole proprietorship, partnership, and corporation
Page 4 of 182
,TEST BANK COLLEGE ACCOUNTING: A CONTEMPORARY APPROACH
6TH EDITION
M. David Haddock Jr., John Ellis Price, and Michael J. Farina
All Chapters 1–13
Answer Key and the end of each chapter
CONTENTS
Chapter 1 Accounting: The Language of Business
Chapter 2 Analyzing Business Transactions
Chapter 3 Analyzing Business Transactions Using T Accounts
Chapter 4 The General Journal and the General Ledger
Chapter 5 Adjustments and the Worksheet
Chapter 6 Closing Entries and the Postclosing Trial Balance
Chapter 7 Accounting for Sales, Accounts Receivable, and Cash Receipts
Chapter 8 Accounting for Purchases, Accounts Payable, and Cash Payments
Chapter 9 Cash
Chapter 10 Payroll Computations, Records, and Payment
Chapter 11 Payroll Taxes, Deposits, and Reports
Chapter 12 Accruals, Deferrals, and the Worksheet
Chapter 13 Financial Statements and Closing Procedure
Page 2 of 182
,CHAPTER 1: Accounting: The Language of Business
1. Accounting is commonly referred to as
a. the language of economics
b. the language of business
c. the language of finance
d. the language of marketing
2. The primary purpose of accounting is to
a. prepare marketing strategies
b. provide useful financial information to decision makers
c. manage employee hiring
d. design new products
3. Which of the following is **not** a major area of accounting?
a. Managerial accounting
b. Financial accounting
c. Tax accounting
d. Production accounting
4. Managers and owners inside a company are considered
a. external users of financial information
b. internal users of financial information
c. regulatory users
d. governmental users
5. A Certified Public Accountant (CPA)
Page 3 of 182
, a. is licensed by the state
b. works only for government agencies
c. does not need to follow ethical standards
d. requires no formal education
6. The Certified Bookkeeper (CB) designation is primarily intended for
a. high-level corporate executives
b. individuals who perform full-charge bookkeeping
c. external auditors of large corporations
d. tax attorneys
7. Managerial accounting provides information mainly to
a. investors and creditors
b. internal managers and supervisors
c. government regulatory agencies
d. the general public
8. A bank loan officer is an example of
a. an internal user
b. an external user
c. a production supervisor
d. a company president
9. The three common forms of business entities are
a. service, merchandising, and manufacturing
b. sole proprietorship, partnership, and corporation
Page 4 of 182
