Test Bank For A Guide to International Financial Reporting Standards 3rd Edition By Belverd Needles, Marian Powers

Accounting 3e Kimmel, Weygandt, Kieso
(Test Bank All Chapters, 100% Original Verified A+ Grade)
CHAPTER 1

INTRODUCTION TO FINANCIAL STATEMENTS
SUMMARY OF QUESTIONS BY STUDY OBJECTIVE AND BLOOM’S TAXONOMY
Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT
True-False Statements
1. 1 K 9. 2 K 17. 3 K 25. 4 K 33. 5 K
2. 1 K 10. 2 K 18. 3 C 26. 4 K 34. 5 K
3. 1 K 11. 2 K 19. 3 K 27. 5 K 35. 6 K
4. 1 K 12. 3 K 20. 4 K 28. 5 C 36. 6 K
5. 1 K 13. 3 K 21. 4 K 29. 5 C 37. 6 K
6. 2 K 14. 3 K 22. 4 K 30. 5 C 38. 6 K
7. 2 K 15. 3 K 23. 4 K 31. 5 C 39. 6 K
8. 2 K 16. 3 K 24. 4 K 32. 5 C 40. 6 C
Multiple Choice Questions
41. 1 K 68. 2 K 95. 3 AP 122. 4 AP 149. 5 K
42. 1 K 69. 2 K 96. 3 K 123. 4 AN 150. 5 C
43. 1 K 70. 2 K 97. 3 C 124. 4 AN 151. 5 C
44. 1 K 71. 2 K 98. 3 C 125. 5 K 152. 5 C
45. 1 K 72. 2 C 99. 4 K 126. 5 K 153. 5 AP
46. 1 K 73. 2 K 100. 4 K 127. 5 K 154. 5 AP
47. 1 K 74. 2 K 101. 4 K 128. 5 AP 155. 5 AP
48. 1 K 75. 2 C 102. 4 C 129. 5 AP 156. 5 AP
49. 1 K 76. 2 C 103. 4 K 130. 5 AP 157. 5 AP
50. 1 K 77. 2 C 104. 4 C 131. 5 AP 158. 5 AP
51. 1 C 78. 3 K 105. 4 K 132. 5 AN 159. 5 K
52. 1 C 79. 3 K 106. 4 K 133. 5 AN 160. 5 K
53. 1 K 80. 3 K 107. 4 K 134. 5 AN 161. 5 AN
54. 1 K 81. 3 K 108. 4 K 135. 5 AN 162. 5 AN
55. 2 C 82. 3 K 109. 4 C 136 5 AN 163. 5 AN
56. 2 K 83. 3 K 110. 4 K 137. 5 K 164. 5 AN
57. 2 K 84. 3 K 111. 4 K 138. 5 K 165. 5 AN
58. 2 K 85. 3 K 112. 4 K 139. 5 K 166. 6 K
59. 2 K 86. 3 K 113. 4 C 140. 5 K 167. 6 K
60. 2 K 87. 3 K 114. 4 K 141. 5 K 168. 6 K
61. 2 K 88. 3 K 115. 4 C 142. 5 K 169. 6 K
62. 2 K 89. 3 K 116. 4 K 143. 5 K 170. 6 K
63. 2 K 90. 3 K 117. 4 K 144. 5 K 171. 6 K
64. 2 K 91. 3 K 118. 4 C 145. 5 K 172. 6 K
65. 2 K 92. 3 K 119. 4 AP 146. 5 K 173. 6 C
66. 2 K 93. 3 K 120. 4 AP 147. 5 C 174. 6 K
67. 2 K 94. 3 AP 121. 4 AP 148. 5 K
Brief Exercises
175. 1 C 179. 4 AP 183. 5 AP 187. 5 C 191. 5 AN
176. 3 C 180. 4 C 184. 5 AP 188. 5 AN
177. 4 AP 181. 4 AP 185. 5 K 189. 5 C
178. 4 AP 182. 4 K 186. 5 C 190. 5 AN
154. Exercises
192. 4 AP 194. 4 AP 196. 4,5 AN 198. 5 AP 200. 5 AP
193. 4 AP 195. 4 AP 197. 4,5 AP 199. 5 AN 201. 5 AN

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Completion Statements
202. 1 K 204. 3 K 206. 5 K 208. 5 K
203. 2 K 205. 5 K 207. 5 K 209. 6 K



Matching
210. 1-6 K
Short Answer Essay
211. 1 K 214. 2 K 217. 5 AN 220. 6 C
212. 1 C 215. 4 C 218. 5 K 221. 6 E
213. 2 C 216. 4 C 219. 5 C 222. 4 C
*This topic is dealt with in an Appendix to the chapter.


SUMMARY OF STUDY OBJECTIVES BY QUESTION TYPE
Study Objective 1
Item Type Item Type Item Type Item Type Item Type Item Type
1. TF 5. TF 44. MC 48. MC 52. MC 202. CS
2. TF 41. MC 45. MC 49. MC 53. MC 210. Ma
3. TF 42. MC 46. MC 50. MC 54. MC 211. SA
4. TF 43. MC 47. MC 51. MC 175. BE 212. SA
Study Objective 2
Item Type Item Type Item Type Item Type Item Type Item Type
6. TF 55. MC 61. MC 67. MC 73. MC 210. Ma
7. TF 56. MC 62. MC 68. MC 74. MC 213. SA
8. TF 57. MC 63. MC 69. MC 75. MC 214. SA
9. TF 58. MC 64. MC 70. MC 76. MC
10. TF 59. MC 65. MC 71. MC 77. MC
11. TF 60. MC 66. MC 72. MC 203. CS
Study Objective 3
Item Type Item Type Item Type Item Type Item Type Item Type
12. TF 18. TF 82. MC 88. MC 94. MC 204. CS
13. TF 19. TF 83. MC 89. MC 95. MC 210. Ma
14. TF 78. MC 84. MC 90. MC 96. MC
15. TF 79. MC 85. MC 91. MC 97. MC
16. TF 80. MC 86. MC 92. MC 98. MC
17. TF 81. MC 87. MC 93. MC 176. BE

, Introduction to Financial Statements 1-3


Study Objective 4
Item Type Item Type Item Type Item Type Item Type Item Type
20. TF 101. MC 110. MC 119. MC 180. BE 210. Ma
21. TF 102. MC 111. MC 120. MC 181. BE 215. SA
22. TF 103. MC 112. MC 121. MC 182. BE 216. SA
23. TF 104. MC 113. MC 122. MC 192. Ex 222. SA
24. TF 105. MC 114. MC 123. MC 193. Ex
25. TF 106. MC 115. MC 124. MC 194. Ex
26. TF 107. MC 116. MC 177. BE 195. Ex
99. MC 108. MC 117. MC 178. BE 196. Ex
100. MC 109. MC 118. MC 179. BE 197. Ex
Study Objective 5
Item Type Item Type Item Type Item Type Item Type Item Type
27. TF 129. MC 141. MC 153. MC 165. MC 198. Ex
28. TF 130. MC 142. MC 154. MC 183. BE 199. Ex
29. TF 131. MC 143. MC 155. MC 184. BE 200. Ex
30. TF 132. MC 144. MC 156. MC 185. BE 201. Ex
31. TF 133. MC 145. MC 157. MC 186. BE 205. CS
32. TF 134. MC 146. MC 158. MC 187. BE 206. CS
33. TF 135. MC 147. MC 159. MC 188. BE 207. CS
34. TF 136. MC 148. MC 160. MC 189. BE 208. CS
125. MC 137. MC 149. MC 161. MC 190. BE 217. SA
126. MC 138. MC 150. MC 162. MC 191. BE 218. SA
127. MC 139. MC 151. MC 163. MC 196. Ex 219. SA
128. MC 140. MC 152. MC 164. MC 197. Ex 210. Ma
Study Objective 6
Item Type Item Type Item Type Item Type Item Type Item Type
35. TF 39. TF 168. MC 172. MC 210. Ma
36. TF 40. TF 169. MC 173. MC 220. SA
37. TF 166. MC 170. MC 174. MC 221. SA
38. TF 167. MC 171. MC 209. CS

Note: TF = True-False C = Completion
MC = Multiple Choice Ex = Exercise
Ma = Matching SA = Short Answer Essay

CHAPTER STUDY OBJECTIVES
1. Describe the primary forms of business organization. A sole proprietorship is a business
owned by one person. A partnership is a business owned by two or more people associated
as partners. A corporation is a separate legal entity for which evidence of ownership is
provided by shares of stock.

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2. Identify the users and uses of accounting information. Internal users are managers who
need accounting information in planning, controlling, and evaluating business operations. The
primary external users are investors and creditors. Investors (stockholders) use accounting
information to help them decide whether to buy, or sell shares of a company’s stock. Creditors
(suppliers and bankers) use accounting information to assess the risk of granting credit or
loaning money to a business. Other groups who have an indirect interest in a business are
taxing authorities, customers, labor unions, and regulatory agencies.
3. Explain the three principal types of business activity. Financing activities involve
collecting the necessary funds to support the business. Investing activities involve acquiring
the resources necessary to run the business. Operating activities involve putting the
resources of the business into action to generate a profit.
4. Describe the content and purpose of each of the financial statements. An income
statement presents the revenues and expenses of a company for a specified period of time. A
retained earnings statement summarizes the changes in retained earnings that have occurred
for a specific period of time. A balance sheet reports the assets, liabilities, and stockholders’
equity of a business at a specific date. A statement of cash flows summarizes information
concerning the cash inflows (receipts) and outflows (payments) for a specific period of time.
5. Explain the meaning of assets, liabilities, and stockholders’ equity, and state the basic
accounting equation. Assets are resources owned by a business. Liabilities are the debts
and obligations of the business. Liabilities represent claims of creditors on the assets of the
business. Stockholders’ equity represents the claims of owners on the assets of the business.
Stockholders’ equity is composed of two parts: common stock and retained earnings. The
basic accounting equation is:
Assets = Liabilities + Stockholders’ Equity
6. Describe the components that supplement the financial statements in an annual report.
The management discussion and analysis provides management’s interpretation of the
company’s results and financial position as well as discussion of plans for the future. Notes to
the financial statements provide additional explanation or detail to make the financial
statements more informative. The auditor’s report expresses an opinion as to whether the
financial statements present fairly the company’s results of operations and financial position.