Test Bank for Financial & Managerial Accounting – Complete Chapters 1-24 (Multiple Choice & Problems with Answers)

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,Chapter 1—Accounting Information: Users and Uses
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MULTIPLEdCHOICE

1. WhichdofdthedfollowingdisdNOTdtypicallydtruedofdaccountingdinformation?
a. Thedinformationdisdquantitativedindnature.
b. Thedinformationdrelatesdtodfuturedtimedperiods.
c. Thedinformationdrelatesdtodspecificdaccountingdentities.
d. Thedinformationdisdprimarilydfinancialdindnature.
ANS:d B PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

2. Whichdofdthedfollowingdisdtruedaboutdtheddouble-entrydsystemdofdbookkeeping?
a. Itdwasddevelopeddindthed1300s1400sdindFrance.
b. Itdwasddevelopeddindthed1800sdindItaly.
c. Itdwasddevelopeddindthed1300s1400sdindItaly.
d. Itdwasddevelopeddindthed1800sdindthedUniteddStates.
ANS:d C PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

3. Businessesdusedaccountingdsystemsdto
a. Analyzedtransactions
b. Handledroutinedbookkeepingdtasks
c. Evaluatedthedperformancedanddhealthdofdthedbusiness
d. Alldofdthesedaredcorrect
ANS:d D PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

4. Whichdofdthedfollowingdisdthedmostdcorrectddefinitiondofdaccounting?
a. Adsystemdfordprovidingdquantitativedinformation,dprimarilydfinancialdindnature,daboutd
economicdentitiesdthatdisdintendeddtodbedusefuldindmakingdeconomicddecisions.
b. Andentitydwithoutdadprofitdobjective,dorienteddtowarddprovidingdservicesdefficientlydandd
effectively.
c. Thedpreservationdofdadsystematic,dquantitativedrecorddofdandactivity.
d. Thedproceduresdanddprocessesduseddbydadcompanydtodanalyzedtransactionsdanddhandled
routinedbookkeepingdtasks.
ANS:d A PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

5. WhichdofdthedfollowingdisdNOTdadfunctiondofdaccounting?
a. Accumulatingdeconomicdinformationdaboutdorganizations
b. Measuringdeconomicdinformationdaboutdorganizations
c. Executingdsalesdtransactionsdfordorganizations
d. Communicatingdeconomicdinformationdaboutdorganizations
ANS:d C PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

, 6. WhichdofdthedfollowingdisdNOTdadkeydcomponentdofdtheddefinitiondofdaccounting?
a. Financial
b. Qualitative
c. Useful
d. Decision-oriented
ANS:d B PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

7. WhichdofdthedfollowingdisdNOTdadstepdindtheddecisiondmakingdprocess?
a. Identifydthedissue.
b. Identifydalternatives.
c. Selectdthedoptiondthatdwilldresultdindthedgreatestdfinancialdincrease.
d. Gatherdinformation.
ANS:d C PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdDecisiondModeling

8. Accountingdcandbedbestddescribeddasda
a. Manufacturingdactivity
b. Servicedactivity
c. Retailingdactivity
d. Alldofdthesedaredcorrect
ANS:d B PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

9. WhichdofdthedfollowingdisdNOTdadtypicaldsourcedofdmonetarydresourcesdfordadbusinessdenterprise?
a. Investors
b. Creditors
c. Businessdearnings
d. Employees
ANS:d D PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

10. Accountantsdtypicallydperformdwhatdactiondrelateddtodthedfinancialdresultsdofdbusinessdactivities?
a. Reportdthedresultsdofdbusinessdactivities
b. Advisedondhowdtodstructuredbusinessdactivities
c. Bothdreportdthedresultsdofdanddadvisedondhowdtodstructuredbusinessdactivities
d. Nonedofdthesedaredcorrect
ANS:d C PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdReporting

11. Thedaccountingdcycledincludesdalldofdthedfollowing,dEXCEPT:
a. Recording
b. Summarizing
c. Analyzing
d. Interpreting
ANS:d D PTS:d d 1 DIF: Easy OBJ:d d 1.1
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdMeasurement

, 12. Thedemphasisdindfinancialdaccountingdisdondwhichdofdthedfollowingdexternalduserdgroups?
a. Management
b. Certifieddpublicdaccountants
c. Investorsdanddcreditors
d. Educators
ANS:d C PTS:d d 1 DIF: Easy OBJ:d d 1.2
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdReporting

13. Thedprimarydinternaldgroupdthatdusesdaccountingdinformationdis
a. Governmentdagencies
b. Investors
c. Management
d. Competitors
ANS:d C PTS:d d 1 DIF: Easy OBJ:d d 1.2
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdReporting

14. Internaldreportsdaredgenerallyduseddby
a. Management
b. Suppliers
c. Lenders
d. Employees
ANS:d A PTS:d d 1 DIF: Easy OBJ:d d 1.2
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdReporting

15. WhichdofdthedfollowingdisdNOTdandimportantdaspectdofdmanagementdaccounting?
a. Planning
b. Productddesign
c. Implementingd plans
d. Controllingdcosts
ANS:d B PTS:d d 1 DIF: Easy OBJ:d d 1.2
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdReporting

16. Thedareadofdaccountingdthatdisdconcerneddwithdprovidingdinformationdfordexternaldusersdisdreferreddtodas
a. Financialdaccounting
b. Governmentaldaccounting
c. Managementdaccounting
d. Not-for-profitdaccounting
ANS:d A PTS:d d 1 DIF: Easy OBJ:d d 1.2
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdReporting

17. WhichdofdthedfollowingdisdNOTdonedofdthedthreedprimarydfinancialdstatements?
a. Statementdofdcashdflows
b. Incomedstatement
c. Statementdofdretaineddearnings
d. Balancedsheet
ANS:d C PTS:d d 1 DIF: Easy OBJ:d d 1.2
NAT:d AACSBdReflectivedThinkingd|dAICPAdFNdReporting