Test Bank for College Accounting: A Practical Approach, 15th
edition by Jeffrey Slater - All Chapters (1-25) Latest Version 2024 A+
Chapter 1 Accounting Concepts and Procedures
Learning Objective 1-1
1) The type of business organization where the owners are NOT personally liable for the business’s
debts is a:
A) corporation
B) partnership
C) sole proprietorship
D) All of the above
Answer: A
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
2) The purpose of the accounting process is to provide financial information about:
A) sole proprietorships
B) small businesses
C) large corporations
D) All of these answers are correct
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
3) Accounting provides information to:
A) investors
B) government
C) managers
D) All of these answers are correct
Answer: D
Diff: 2
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Page 1
,LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
4) Which of the following is a characteristic of a sole proprietorship?
A) Business owned by more than one person.
B) Easy to form.
C) Each stockholder acts as an owner of the company.
D) Can continue indefinitely.
Answer: B
Diff: 1
LO: 1-1 AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
5) A partnership is a business which:
A) is easy to form
B) ends with the death of a partner
C) is owned by more than one person
D) All of these answers are correct
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
6) Which is an advantage of a sole proprietorship form of business?
A) There is limited personal risk.
B) The business can continue indefinitely.
C) The owner makes all the decisions.
D) The business is owned by stockholders.
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
7) Which of the following is NOT a type of business organization?
A) Corporation
B) Partnership
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Page 2
,C) Sole proprietorship
D) Limited Asset Corporation
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
8) A corporation:
A) is legally separate from its owners
B) is owned by stockholders
C) has limited risk to stockholders
D) All of the above
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
9) The basic accounting equation is:
A) Assets + Liabilities = Owner’s Equity
B) Assets = Liabilities - Owner's Equity
C) Assets = Owner’s Equity - Liabilities
D) Assets = Liabilities + Owner's Equity
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
10) A law firm would be considered a:
A) merchandise company
B) manufacturer
C) service company
D) retailer
Answer: C
Diff: 1 LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
Instant Download
Page 3
, 11) GAAP stand for ______________________.
A) Generally Accepted Accounting Practices
B) General Accounting Accepted Practices
C) Generally Accepted Accounting Principles
D) General Accounting Application Practices
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
12) The purchase of supplies for cash would affect which account category?
A) Assets
B) Liabilities
C) Capital
D) Expense
Answer: A
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Analyze and record transactions and their effects on the financial statements
13) Items owned by the business such as land, supplies and equipment are:
A) Assets
B) Liabilities
C) Owner's Equity
D) Expenses
Answer: A
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
14) Which of the following is NOT an Asset?
A) Cash
B) Accounts Receivable
C) Buildings
D) All of the above are Assets
Instant Download
Page 4
edition by Jeffrey Slater - All Chapters (1-25) Latest Version 2024 A+
Chapter 1 Accounting Concepts and Procedures
Learning Objective 1-1
1) The type of business organization where the owners are NOT personally liable for the business’s
debts is a:
A) corporation
B) partnership
C) sole proprietorship
D) All of the above
Answer: A
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
2) The purpose of the accounting process is to provide financial information about:
A) sole proprietorships
B) small businesses
C) large corporations
D) All of these answers are correct
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
3) Accounting provides information to:
A) investors
B) government
C) managers
D) All of these answers are correct
Answer: D
Diff: 2
Instant Download
Page 1
,LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
4) Which of the following is a characteristic of a sole proprietorship?
A) Business owned by more than one person.
B) Easy to form.
C) Each stockholder acts as an owner of the company.
D) Can continue indefinitely.
Answer: B
Diff: 1
LO: 1-1 AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
5) A partnership is a business which:
A) is easy to form
B) ends with the death of a partner
C) is owned by more than one person
D) All of these answers are correct
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
6) Which is an advantage of a sole proprietorship form of business?
A) There is limited personal risk.
B) The business can continue indefinitely.
C) The owner makes all the decisions.
D) The business is owned by stockholders.
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
7) Which of the following is NOT a type of business organization?
A) Corporation
B) Partnership
Instant Download
Page 2
,C) Sole proprietorship
D) Limited Asset Corporation
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
8) A corporation:
A) is legally separate from its owners
B) is owned by stockholders
C) has limited risk to stockholders
D) All of the above
Answer: D
Diff: 2
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
9) The basic accounting equation is:
A) Assets + Liabilities = Owner’s Equity
B) Assets = Liabilities - Owner's Equity
C) Assets = Owner’s Equity - Liabilities
D) Assets = Liabilities + Owner's Equity
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
10) A law firm would be considered a:
A) merchandise company
B) manufacturer
C) service company
D) retailer
Answer: C
Diff: 1 LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
Instant Download
Page 3
, 11) GAAP stand for ______________________.
A) Generally Accepted Accounting Practices
B) General Accounting Accepted Practices
C) Generally Accepted Accounting Principles
D) General Accounting Application Practices
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
12) The purchase of supplies for cash would affect which account category?
A) Assets
B) Liabilities
C) Capital
D) Expense
Answer: A
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Analyze and record transactions and their effects on the financial statements
13) Items owned by the business such as land, supplies and equipment are:
A) Assets
B) Liabilities
C) Owner's Equity
D) Expenses
Answer: A
Diff: 1
LO: 1-1
AACSB: Reflective Thinking
Learning Outcome: Define accounting terms, accounting concepts and principles
14) Which of the following is NOT an Asset?
A) Cash
B) Accounts Receivable
C) Buildings
D) All of the above are Assets
Instant Download
Page 4
