, TESTBANK FOR Financial and Managerial
Accounting, 5th Edition Weygandt
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Financial and Managerial Accounting, 5e (Weygandt)
Chapter 1 Accounting in Action
1) Owners of business firms are the only people who need accounting information.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
2) Transactions that can be measured in dollars and cents are recorded in the financial
information system.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
3) The hiring of a new company president is an economic event recorded by the financial
information system.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
4) Management of a business enterprise is the major external user of information.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
1
,5) Accounting communicates financial information about a business enterprise to both internal
and external users.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
6) Accounting information is used only by external users with financial interests in a business
enterprise.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
7) Financial statements are the primary means of communicating accounting information to
interested parties.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
8) Bookkeeping and accounting are one and the same because the bookkeeping function includes
the accounting process.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
2
,9) The origins of accounting are attributed to Luca Pacioli, a famous mathematician.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
10) The study of accounting is not useful for a business career unless your career objective is to
become an accountant.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
11) A working knowledge of accounting is not relevant to a lawyer or an architect.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
12) A partnership must have more than one owner.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
13) The economic entity assumption requires that the activities of an entity be kept separate and
distinct from the activities of its owner and all other economic entities.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
3
,14) The monetary unit assumption states that only transactions that can be measured in terms of
money should be recorded in the accounting records.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
15) Accountants rely on a fundamental business concept—ethical behavior—in reporting
financial information.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting, Ethics
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
16) The primary accounting standard-setting body in the United States is the International
Accounting Standards Board.
Answer: FALSE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
17) The Financial Accounting Standards Board is a part of the Securities and Exchange
Commission.
Answer: FALSE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
4
,18) The Securities and Exchange Commission oversees U.S. financial markets and accounting
standard-setting bodies.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
19) The cost and fair value of an asset are the same at the time of acquisition and in all
subsequent periods.
Answer: FALSE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
20) Even though a partnership is not a separate legal entity, for accounting purposes the
partnership affairs should be kept separate from the personal activities of the owners.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
21) In order to possess future service potential, an asset must have physical substance.
Answer: FALSE
Diff: 1
LO: 3
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
5
,22) Owners' claims to total business assets take precedence over the claims of creditors because
owners invest assets in the business and are liable for losses.
Answer: FALSE
Diff: 1
LO: 3
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
23) The basic accounting equation states that Assets = Liabilities.
Answer: FALSE
Diff: 1
LO: 3
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
24) Both internal and external transactions are recorded in accounting records.
Answer: TRUE
Diff: 1
LO: 4
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
25) Internal transactions do not affect the basic accounting equation because they are economic
events that occur entirely within one company.
Answer: FALSE
Diff: 1
LO: 4
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
26) The purchase of store equipment for cash reduces assets and stockholders' equity by an equal
amount.
Answer: FALSE
Diff: 1
LO: 4
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
6
,27) The purchase of office equipment on credit increases total assets and total liabilities.
Answer: TRUE
Diff: 1
LO: 4
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
28) The primary purpose of the statement of cash flows is to provide information about the cash
receipts and cash payments of a company during a period.
Answer: TRUE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
29) Net income for the period is determined by subtracting total expenses and drawings from
total revenues.
Answer: FALSE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
30) The income statement is sometimes referred to as the statement of operations.
Answer: TRUE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
31) A balance sheet reports the assets and liabilities of a company for a specific period of time.
Answer: FALSE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
7
, 32) The ending retained earnings balance is reported on both the retained earnings statement and
the balance sheet.
Answer: TRUE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
33) The study of accounting will be useful only if a student is interested in working for a profit-
oriented business firm.
Answer: FALSE
Diff: 1
LO: 6
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
34) Private accountants are accountants who are not employees of business enterprises.
Answer: FALSE
Diff: 1
LO: 6
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
35) Expressing an opinion as to the fairness of the information presented in financial statements
is a service performed by CPAs.
Answer: TRUE
Diff: 1
LO: 6
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
8
Accounting, 5th Edition Weygandt
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Financial and Managerial Accounting, 5e (Weygandt)
Chapter 1 Accounting in Action
1) Owners of business firms are the only people who need accounting information.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
2) Transactions that can be measured in dollars and cents are recorded in the financial
information system.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
3) The hiring of a new company president is an economic event recorded by the financial
information system.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
4) Management of a business enterprise is the major external user of information.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
1
,5) Accounting communicates financial information about a business enterprise to both internal
and external users.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
6) Accounting information is used only by external users with financial interests in a business
enterprise.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
7) Financial statements are the primary means of communicating accounting information to
interested parties.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
8) Bookkeeping and accounting are one and the same because the bookkeeping function includes
the accounting process.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
2
,9) The origins of accounting are attributed to Luca Pacioli, a famous mathematician.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
10) The study of accounting is not useful for a business career unless your career objective is to
become an accountant.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
11) A working knowledge of accounting is not relevant to a lawyer or an architect.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
12) A partnership must have more than one owner.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
13) The economic entity assumption requires that the activities of an entity be kept separate and
distinct from the activities of its owner and all other economic entities.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
3
,14) The monetary unit assumption states that only transactions that can be measured in terms of
money should be recorded in the accounting records.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
15) Accountants rely on a fundamental business concept—ethical behavior—in reporting
financial information.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting, Ethics
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
16) The primary accounting standard-setting body in the United States is the International
Accounting Standards Board.
Answer: FALSE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
17) The Financial Accounting Standards Board is a part of the Securities and Exchange
Commission.
Answer: FALSE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
4
,18) The Securities and Exchange Commission oversees U.S. financial markets and accounting
standard-setting bodies.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
19) The cost and fair value of an asset are the same at the time of acquisition and in all
subsequent periods.
Answer: FALSE
Diff: 1
LO: 2
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
20) Even though a partnership is not a separate legal entity, for accounting purposes the
partnership affairs should be kept separate from the personal activities of the owners.
Answer: TRUE
Diff: 1
LO: 2
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
21) In order to possess future service potential, an asset must have physical substance.
Answer: FALSE
Diff: 1
LO: 3
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
5
,22) Owners' claims to total business assets take precedence over the claims of creditors because
owners invest assets in the business and are liable for losses.
Answer: FALSE
Diff: 1
LO: 3
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
23) The basic accounting equation states that Assets = Liabilities.
Answer: FALSE
Diff: 1
LO: 3
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
24) Both internal and external transactions are recorded in accounting records.
Answer: TRUE
Diff: 1
LO: 4
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
25) Internal transactions do not affect the basic accounting equation because they are economic
events that occur entirely within one company.
Answer: FALSE
Diff: 1
LO: 4
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
26) The purchase of store equipment for cash reduces assets and stockholders' equity by an equal
amount.
Answer: FALSE
Diff: 1
LO: 4
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
6
,27) The purchase of office equipment on credit increases total assets and total liabilities.
Answer: TRUE
Diff: 1
LO: 4
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
28) The primary purpose of the statement of cash flows is to provide information about the cash
receipts and cash payments of a company during a period.
Answer: TRUE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
29) Net income for the period is determined by subtracting total expenses and drawings from
total revenues.
Answer: FALSE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
30) The income statement is sometimes referred to as the statement of operations.
Answer: TRUE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
31) A balance sheet reports the assets and liabilities of a company for a specific period of time.
Answer: FALSE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
7
, 32) The ending retained earnings balance is reported on both the retained earnings statement and
the balance sheet.
Answer: TRUE
Diff: 1
LO: 5
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
33) The study of accounting will be useful only if a student is interested in working for a profit-
oriented business firm.
Answer: FALSE
Diff: 1
LO: 6
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
34) Private accountants are accountants who are not employees of business enterprises.
Answer: FALSE
Diff: 1
LO: 6
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
35) Expressing an opinion as to the fairness of the information presented in financial statements
is a service performed by CPAs.
Answer: TRUE
Diff: 1
LO: 6
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
8
