Accounting Volume 1 Canadian 9th Edition by
Charles T. Horngren - Test Bank Chapter (1 to 11)
1
© 2014 Pearson Canada Inc.
,Content: _
Chapter 1: Accounting and the Business Environment
Chapter 2: Recording Business Transactions
Chapter 3: Measuring Business Income: The Adjusting Process
Chapter 4: Completing the Accounting Cycle
Chapter 5: Merchandising Operations and the Accounting Cycle
Chapter 6: Accounting for Merchandise Inventory
Chapter 7: Accounting Information Systems
Chapter 8: Internal Control and Cash
Chapter 9: Receivables
Chapter 10: Property, Plant, and Equipment; Goodwill; and Intangibles
Chapter 11: Current Liabilities and Payroll
2
© 2014 Pearson Canada Inc.
,Accounting, Vol. 1, 9e Cdn. Ed. (Horngren et al.)
Chapter 1 Accounting and the Business Environment
Objective 1-1
1) Financial statements provide information about business activities to decision makers.
Answer: TRUE
Diff: 1
Learning Outcome: A-02 Describe the components of and prepare the four basic financial
statements Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
2) Investors provide money to a business to begin operations.
Answer: TRUE
Diff: 2
Learning Outcome: A-01 Identify and apply accounting concepts and principles found in
the Conceptual Framework
Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
3) Not-for-profit organizations need accounting information, as do profit-oriented
organizations.Answer: TRUE
Diff: 1
Learning Outcome: A-01 Identify and apply accounting concepts and principles found in
the Conceptual Framework
Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
4) The designation CA stands for Certified Public Accountant.
3
© 2014 Pearson Canada Inc.
, Answer: FALSE
Diff: 1
Learning Outcome: A-01 Identify and apply accounting
concepts and principles found in the Conceptual
Framework
Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
5) Which of the following users of accounting information seek to assess the organization's
ability to make scheduled payments?
A) creditors
B) taxing authorities
C) government regulatory agencies
D) employees
Answer: A
Diff: 2
Learning Outcome: A-01 Identify and apply accounting concepts and principles found in
the Conceptual Framework
Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
6) The primary objective of financial reporting is to provide
information: A) to the federal government.
B) about the profitability of the business.
C) regarding the cash flows of the business.
D) useful for making investment decisions and for assessing management's
stewardship.Answer: D
Diff: 3
Learning Outcome: A-01 Identify and apply accounting concepts and principles found in
the Conceptual Framework
4
© 2014 Pearson Canada Inc.
Charles T. Horngren - Test Bank Chapter (1 to 11)
1
© 2014 Pearson Canada Inc.
,Content: _
Chapter 1: Accounting and the Business Environment
Chapter 2: Recording Business Transactions
Chapter 3: Measuring Business Income: The Adjusting Process
Chapter 4: Completing the Accounting Cycle
Chapter 5: Merchandising Operations and the Accounting Cycle
Chapter 6: Accounting for Merchandise Inventory
Chapter 7: Accounting Information Systems
Chapter 8: Internal Control and Cash
Chapter 9: Receivables
Chapter 10: Property, Plant, and Equipment; Goodwill; and Intangibles
Chapter 11: Current Liabilities and Payroll
2
© 2014 Pearson Canada Inc.
,Accounting, Vol. 1, 9e Cdn. Ed. (Horngren et al.)
Chapter 1 Accounting and the Business Environment
Objective 1-1
1) Financial statements provide information about business activities to decision makers.
Answer: TRUE
Diff: 1
Learning Outcome: A-02 Describe the components of and prepare the four basic financial
statements Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
2) Investors provide money to a business to begin operations.
Answer: TRUE
Diff: 2
Learning Outcome: A-01 Identify and apply accounting concepts and principles found in
the Conceptual Framework
Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
3) Not-for-profit organizations need accounting information, as do profit-oriented
organizations.Answer: TRUE
Diff: 1
Learning Outcome: A-01 Identify and apply accounting concepts and principles found in
the Conceptual Framework
Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
4) The designation CA stands for Certified Public Accountant.
3
© 2014 Pearson Canada Inc.
, Answer: FALSE
Diff: 1
Learning Outcome: A-01 Identify and apply accounting
concepts and principles found in the Conceptual
Framework
Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
5) Which of the following users of accounting information seek to assess the organization's
ability to make scheduled payments?
A) creditors
B) taxing authorities
C) government regulatory agencies
D) employees
Answer: A
Diff: 2
Learning Outcome: A-01 Identify and apply accounting concepts and principles found in
the Conceptual Framework
Skill: Knowledge
Objective: 1-1 Define accounting, and describe the users of accounting information
6) The primary objective of financial reporting is to provide
information: A) to the federal government.
B) about the profitability of the business.
C) regarding the cash flows of the business.
D) useful for making investment decisions and for assessing management's
stewardship.Answer: D
Diff: 3
Learning Outcome: A-01 Identify and apply accounting concepts and principles found in
the Conceptual Framework
4
© 2014 Pearson Canada Inc.
