Accounting What the Numbers Mean David Marshall
12th Edition - Test Bank Chapter (1 to 16)
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,Content: _
Chapter 1 Accounting—Present and Past
Chapter 2 Financial Statements and Accounting Concepts/Principles
Chapter 3 Fundamental Interpretations Made from Financial Statement
Data
Chapter 4 The Bookkeeping Process and Transaction Analysis
Chapter 5 Accounting for and Presentation of Current Assets
Chapter 6 Accounting for and Presentation of Property, Plant, and
Equipment, and Other Noncurrent Assets
Chapter 7 Accounting for and Presentation of Liabilities
Chapter 8 Accounting for and Presentation of Stockholders' Equity
Chapter 9 The Income Statement and the Statement of Cash Flows
Chapter 10 Corporate Governance, Notes to the Financial Statements, and
Other Disclosures
Chapter 11 Financial Statement Analysis
Chapter 12 Managerial Accounting and Cost-Volume-Profit Relationships
Chapter 13 Cost Accounting and Reporting
Chapter 14 Cost Planning
Chapter 15 Cost Control
Chapter 16 Cost for Decision Making
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,Accounting - What the Numbers Mean, 12e (Marshall)
Chapter 1 Accounting—Present and Past
1) Which of the following entities would not require accounting information pertaining to their
economic activities?
A) Social clubs.
B) Not-for-profit entities.
C) State governments.
D) All of these entities require accounting information.
Answer: D
Difficulty: 1 Easy
Topic: What Is Accounting?
Learning Objective: 01-02 Identify who the users of accounting information are and explain why
they find accounting information useful.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The authoritative financial accounting standards-setting body in the United States is presently
the:
A) Securities and Exchange Commission (SEC)
B) International Accounting Standards Board (IASB)
C) Public Company Accounting Oversights Board (PCAOB)
D) Financial Accounting Standards Board (FASB)
E) Accounting Principles Board (APB)
Answer: D
Difficulty: 1 Easy
Topic: How Has Accounting Developed?
Learning Objective: 01-05 Explain the role that the FASB plays in the development of financial
accounting standards.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 3) Which of the following statements about the Financial Accounting Standards Board is correct?
A) The FASB is an agency of the Federal government.
B) The FASB has the authority to fine a noncompliant firm.
C) The FASB follows a due process procedure that permits input from interested parties before an
Accounting Standards Update (ASU) is issued.
D) The FASB is controlled by the American Institute of CPAs.
Answer: C
Difficulty: 2 Medium
Topic: How Has Accounting Developed?
Learning Objective: 01-05 Explain the role that the FASB plays in the development of financial
accounting standards.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) Major classifications of accounting activity would not include:
A) financial accounting, internal auditing, public accounting.
B) internal auditing, governmental accounting, managerial accounting.
C) financial accounting, national accounting, cost accounting.
D) auditing, income tax accounting, governmental accounting.
Answer: C
Difficulty: 1 Easy
Topic: What Is Accounting?
Learning Objective: 01-03 Identify the variety of professional services that accountants provide.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Which of the following is not an example of a decision or informed judgment that a potential
investor would make from accounting information?
A) Future profitability based on past profitability.
B) Probability of success of a new product development.
C) A forecast of dividends.
D) Assessment of risk that a company may have more debt than it can repay if the economy enters
a recession.
Answer: B
Difficulty: 2 Medium
Topic: What Is Accounting?
Learning Objective: 01-02 Identify who the users of accounting information are and explain why
they find accounting information useful.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
12th Edition - Test Bank Chapter (1 to 16)
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,Content: _
Chapter 1 Accounting—Present and Past
Chapter 2 Financial Statements and Accounting Concepts/Principles
Chapter 3 Fundamental Interpretations Made from Financial Statement
Data
Chapter 4 The Bookkeeping Process and Transaction Analysis
Chapter 5 Accounting for and Presentation of Current Assets
Chapter 6 Accounting for and Presentation of Property, Plant, and
Equipment, and Other Noncurrent Assets
Chapter 7 Accounting for and Presentation of Liabilities
Chapter 8 Accounting for and Presentation of Stockholders' Equity
Chapter 9 The Income Statement and the Statement of Cash Flows
Chapter 10 Corporate Governance, Notes to the Financial Statements, and
Other Disclosures
Chapter 11 Financial Statement Analysis
Chapter 12 Managerial Accounting and Cost-Volume-Profit Relationships
Chapter 13 Cost Accounting and Reporting
Chapter 14 Cost Planning
Chapter 15 Cost Control
Chapter 16 Cost for Decision Making
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,Accounting - What the Numbers Mean, 12e (Marshall)
Chapter 1 Accounting—Present and Past
1) Which of the following entities would not require accounting information pertaining to their
economic activities?
A) Social clubs.
B) Not-for-profit entities.
C) State governments.
D) All of these entities require accounting information.
Answer: D
Difficulty: 1 Easy
Topic: What Is Accounting?
Learning Objective: 01-02 Identify who the users of accounting information are and explain why
they find accounting information useful.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The authoritative financial accounting standards-setting body in the United States is presently
the:
A) Securities and Exchange Commission (SEC)
B) International Accounting Standards Board (IASB)
C) Public Company Accounting Oversights Board (PCAOB)
D) Financial Accounting Standards Board (FASB)
E) Accounting Principles Board (APB)
Answer: D
Difficulty: 1 Easy
Topic: How Has Accounting Developed?
Learning Objective: 01-05 Explain the role that the FASB plays in the development of financial
accounting standards.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 3) Which of the following statements about the Financial Accounting Standards Board is correct?
A) The FASB is an agency of the Federal government.
B) The FASB has the authority to fine a noncompliant firm.
C) The FASB follows a due process procedure that permits input from interested parties before an
Accounting Standards Update (ASU) is issued.
D) The FASB is controlled by the American Institute of CPAs.
Answer: C
Difficulty: 2 Medium
Topic: How Has Accounting Developed?
Learning Objective: 01-05 Explain the role that the FASB plays in the development of financial
accounting standards.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) Major classifications of accounting activity would not include:
A) financial accounting, internal auditing, public accounting.
B) internal auditing, governmental accounting, managerial accounting.
C) financial accounting, national accounting, cost accounting.
D) auditing, income tax accounting, governmental accounting.
Answer: C
Difficulty: 1 Easy
Topic: What Is Accounting?
Learning Objective: 01-03 Identify the variety of professional services that accountants provide.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Which of the following is not an example of a decision or informed judgment that a potential
investor would make from accounting information?
A) Future profitability based on past profitability.
B) Probability of success of a new product development.
C) A forecast of dividends.
D) Assessment of risk that a company may have more debt than it can repay if the economy enters
a recession.
Answer: B
Difficulty: 2 Medium
Topic: What Is Accounting?
Learning Objective: 01-02 Identify who the users of accounting information are and explain why
they find accounting information useful.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
