TEST BANK for Survey of Accounting 10th Edition by Carl Warren and Farmer all chapters 1-14.pdf

Test Bank for Survey of Accounting 10e 10th Edition by Carl Warren, Amanda Farmer
b b b b b b b b b b b b b




Chapb 01b10ebWarren
All Chapters
b

Indicateb whetherb theb statementb isb trueb orb false.
b 1.bThebpopularitybofbthebsolebproprietorshipbisbduebtobthebeasebandblowbcostbofborganizing.
a. True
b. False

ANSWER:b True

b 2.bAbcorporationbisbabbusinessbthatbisblegallybseparatebandbdistinctbfrombitsbowners.
a. True
b. False

ANSWER:b True

b 3.bMerchandisingbbusinessesbproducebproductsbratherbthanbprovidebservicesbtobcustomers.
a. True
b. False

ANSWER:b False

b 4.bAbpartnershipbisbownedbbybtwoborbmorebindividuals.
a. True
b. False

ANSWER:b True

b 5.bAblimitedbliabilitybcompanybcombinesbattributesbofbabpartnershipbandbabcorporation.
a. True
b. False

ANSWER:b True

b 6.bThebownershipbofbabproprietorshipbisbdividedbintobsharesbofbstockbownedbbybitsbstockholders.
a. True
b. False

ANSWER:b False

b 7.bAccountingbisboftenbcalledbtheb"languagebofbbusiness"bbecausebbusinessbinformationbisbcommunicatedbtob
stakeholders.
a. True
b. False

ANSWER:b True




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,Name: Class: Date:

Chapb 01b10ebWarren

b 8.bJohnbDeerebisbableadingbmanufacturerbofbagriculturalbmachinerybinbthebworld,bproducingbproductsbthatbservebuni
quebmarketbneeds.bTherefore,bJohnbDeerebisbanbexamplebofbabcompanybthatbusesbabpremium-
pricebapproachbtobattractbcustomers.
a. True
b. False

ANSWER:b True

b 9.bCreditorsbhavebpreferencebtobassetsbbehindbstockholdersbifbabbusinessbfails.
a. True
b. False

ANSWER:b False

b 10.bAbliabilitybisbablegalbobligationbtobrepaybthebamountbborrowedbaccordingbtobthebtermsbofbthebborrowingbagreement.
a. True
b. False

ANSWER:b True

b 11.bThebbalancebsheetbrepresentsbthebaccountingbequation.
a. True
b. False

ANSWER:b True

b 12.bAbprimarybdisadvantagebofbcorporationsbisbthatbthebfinancialbresourcesbavailablebtobthembareblimited.
a. True
b. False

ANSWER:b False

b 13.bAssetsbarebacquiredbthroughbinvestingbactivitiesbwhenbresourcesbarebpurchased.
a. True
b. False

ANSWER:b True

b 14.bThebobjectivebofbmostbbusinessesbisbtobmaximizebprofits.
a. True
b. False

ANSWER:b True




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,Name: Class: Date:

Chapb 01b10ebWarren

b 15.bThebstockholders'bequitybofbabcompanybshouldbequalbthebsumbofbitsbtotalbassetsbandbtotalbliabilities.
a. True
b. False

ANSWER:b False

b 16.bThebbranchbofbaccountingbrelatedbtobthebmanagement'sbfinancialbdecisionsbisbknownbasbfinancialbaccounting.
a. True
b. False

ANSWER:b False

b 17.bAllbmerchandisingbbusinessesbareborganizedbasbcorporations.
a. True
b. False

ANSWER:b False

b 18.bStockholdersbofbabcorporationbarebitsbinternalbstakeholders.
a. True
b. False

ANSWER:b False

b 19.bThebbasicbtypebofbstockbissuedbtobownersbisbcalledbcommonbstock.
a. True
b. False

ANSWER:b True

b 20.bAbbusinessbstakeholderbhasbanbinterestbinbthebeconomicbperformancebofbabcompany.
a. True
b. False

ANSWER:b True

b 21.bManufacturingbbusinessesbchangebbasicbinputsbintobproductsbthatbarebsoldbtobindividualbcustomers.
a. True
b. False

ANSWER:b True

b 22.bCompaniesbusingbablow-costbemphasisbprovidebproductsbandbservicesbthatbcompetebonbfeaturesbotherbthanbprice.
a. True
b. False

ANSWER:b False


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, Name: Class: Date:

Chapb 01b10ebWarren

Indicateb theb answerb choiceb thatb bestb completesb theb statementb orb answersb theb question.
b 23.bWhenbabbusinessbborrowsbmoney,bwhichbofbthebfollowingbisbincurred?
a. Anbaccumulatedbdepletion
b. Abliability
c. Abloss
d. Anbaccruedbexpenditure

ANSWER:b b

b 24.bWhatbisbthebprimarybobjectivebofbmostbbusinesses?
a. Tobmaximizebprofits
b. Tobpaybdividendsbtobstockholders
c. Tobprovidebabbenefitbtobsociety
d. Tobmanufacturebabqualitybproduct

ANSWER:b a

b 25.bAbnotebpayablebrequiresbpaymentbofbthebamountbborrowedbplusb .
a. interest
b. tax
c. overhead
d. dividend

ANSWER:b a

b 26.bIfbtherebarebnobbeginningbretainedbearnings,bnetbincomebofb$31,200,bandbendingbretainedbearningsbofb$9,000,bhowb
muchbarebdividends?
a. $40,200
b. $9,000
c. $22,200
d. $4,500

ANSWER:b c

b 27.bWhichbofbthebfollowingbisbnotbanbexamplebofbabcapitalbmarketbstakeholder?
a. Banks
b. Owners
c. Suppliers
d. Stockholders

ANSWER:b c




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