Survey of Accounting 7th Edition Carl Warren- Test Bank

,Chapter 1
1. The objective of most businesses is to maximize profits.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

2. A limited liability company combines attributes of a partnership and a corporation.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

3. A partnership is owned by two or more individuals.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

4. Manufacturing businesses change basic inputs into products that are sold to individual customers.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge


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,Chapter 1
5. Merchandising businesses produce products rather than provide services to customers.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

6. A corporation is a business that is legally separate and distinct from its owners.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

7. The popularity of the sole proprietorship is due to the ease and low cost of organizing.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

8. A primary disadvantage of corporations is that the financial resources available to them are limited.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge


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, Chapter 1
9. The ownership of a proprietorship is divided into shares of stock owned by its stockholders.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

10. All merchandising businesses are organized as corporations.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

11. Stockholders of a corporation are its internal stakeholders.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement
KEYWORDS: Bloom's: Knowledge

12. John Deere is a leading manufacturer of agricultural machinery in the world producing products that serve unique
market needs. Therefore, John Deere is an example of a company that uses a premium-price emphasis to attract
customers.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: SACC.WARR.15.01 - LO: 1-1
NATIONAL STANDARDS: United States - BUSPORG: Analytic
STATE STANDARDS: United States - AK - DISC: AICPA: FN-Measurement

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