Created by: Irfan Ali
Solutions Manual / Test Bank for Financial Accounting
Fundamentals, 8th Edition, By John Wild A++
Financial Accounting Fundamentals, 8e (Wild) Chapter 1 Accounting in Business
1) Accounting is an information and measurement system that identifies, records, and
communicates relevant, reliable, and comparable information about an organization's business
activities.
Answer: TRUE Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either
manually or electronically. This is just one part of accounting.
Answer: TRUE Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
3) An accounting system captures relevant data about transactions and then classifies,
records, and reports data.
Answer: TRUE Difficulty: 1 Easy
Topic: Importance of Accounting
A+ Page 1
,Created by: Irfan Ali
Learning Objective: 01-C1 Explain the purpose and importance of accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
4) Financial accounting is the area of accounting aimed at serving external users by
providing them with general-purpose financial statements.
Answer: TRUE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
5) Internal operating activities include research and development, distribution, and human
resources.
Answer: TRUE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
6) The primary objective of managerial accounting is to provide general purpose financial
statements to help external users analyze and interpret an organization's activities.
Answer: FALSE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
A+ Page 2
,Created by: Irfan Ali
Bloom's: Remember AACSB: Communication
Accessible/AICPA: Keyboard Navigation
7) External auditors examine financial statements to verify that they are prepared according
to generally accepted accounting principles.
Answer: TRUE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
8) External users include lenders, shareholders, customers, and regulators.
Answer: TRUE Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Understand
AACSB: Communication Accessible/AICPA: Keyboard Navigation
9) Regulators often have legal authority over certain activities of organizations.
A+ Page 3
, Created by: Irfan Ali
Answer: TRUE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
10) Internal users include lenders, shareholders, brokers and nonexecutive employees.
Answer: FALSE Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Understand
AACSB: Communication Accessible/AICPA: Keyboard Navigation
11) Opportunities in accounting include auditing, consulting, market research, and tax
planning.
Answer: TRUE Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Understand
AACSB: Communication Accessible/AICPA: Keyboard Navigation
12) Identifying the proper ethical path is usually easy.
Answer: FALSE
A+ Page 4
Solutions Manual / Test Bank for Financial Accounting
Fundamentals, 8th Edition, By John Wild A++
Financial Accounting Fundamentals, 8e (Wild) Chapter 1 Accounting in Business
1) Accounting is an information and measurement system that identifies, records, and
communicates relevant, reliable, and comparable information about an organization's business
activities.
Answer: TRUE Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either
manually or electronically. This is just one part of accounting.
Answer: TRUE Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
3) An accounting system captures relevant data about transactions and then classifies,
records, and reports data.
Answer: TRUE Difficulty: 1 Easy
Topic: Importance of Accounting
A+ Page 1
,Created by: Irfan Ali
Learning Objective: 01-C1 Explain the purpose and importance of accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
4) Financial accounting is the area of accounting aimed at serving external users by
providing them with general-purpose financial statements.
Answer: TRUE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
5) Internal operating activities include research and development, distribution, and human
resources.
Answer: TRUE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
6) The primary objective of managerial accounting is to provide general purpose financial
statements to help external users analyze and interpret an organization's activities.
Answer: FALSE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting.
A+ Page 2
,Created by: Irfan Ali
Bloom's: Remember AACSB: Communication
Accessible/AICPA: Keyboard Navigation
7) External auditors examine financial statements to verify that they are prepared according
to generally accepted accounting principles.
Answer: TRUE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
8) External users include lenders, shareholders, customers, and regulators.
Answer: TRUE Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Understand
AACSB: Communication Accessible/AICPA: Keyboard Navigation
9) Regulators often have legal authority over certain activities of organizations.
A+ Page 3
, Created by: Irfan Ali
Answer: TRUE Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Remember
AACSB: Communication Accessible/AICPA: Keyboard Navigation
10) Internal users include lenders, shareholders, brokers and nonexecutive employees.
Answer: FALSE Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Understand
AACSB: Communication Accessible/AICPA: Keyboard Navigation
11) Opportunities in accounting include auditing, consulting, market research, and tax
planning.
Answer: TRUE Difficulty: 2 Medium
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Bloom's:
Understand
AACSB: Communication Accessible/AICPA: Keyboard Navigation
12) Identifying the proper ethical path is usually easy.
Answer: FALSE
A+ Page 4
