Solutions for Survey of Accounting, 10th Edition by Carl Warren.pdf

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




Chapm 01 m 10em Warren
All Chapters
m

Indicate m whetherm them statementm ism truem orm false
.
m 1.mThempopularity mof mthemsolemproprietorship mismduemto mthemeasemand mlowmcostmof morganizing.
a. True
b. False

ANSWER:m True

m 2.mAmcorporation mismambusinessmthatmismlegally mseparate mand mdistinctmfrommitsmowners.
a. True
b. False

ANSWER:m True

m 3.mMerchandisingmbusinessesmproduce mproductsmrathermthan mprovide mservicesmto mcustomers.
a. True
b. False

ANSWER:m False

m 4.mAmpartnership mismowned mby mtwo mormmoremindividuals.
a. True
b. False

ANSWER:m True

m 5.mAmlimited mliability mcompany mcombinesmattributesmof mampartnership mand mamcorporation.
a. True
b. False

ANSWER:m True

m 6.mThemownership mof mamproprietorship mismdivided minto msharesmof mstock mowned mby mitsmstockholders.
a. True
b. False

ANSWER:m False

m 7.mAccountingmismoften mcalledmthem"languagemofmbusiness"mbecausembusinessminformation mismcommunicate
d mto mstakeholders.
a. True
b. False

ANSWER:m True




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,Name: Class: Date:

Chapm 01 m10em Warre
n
m 8.mJohn mDeeremismamleadingmmanufacturermofmagriculturalmmachinery minmthemworld,mproducingmproductsmthatmserv
emunique mmarketmneeds.mTherefore,mJohn mDeere misman mexample mof mamcompany mthatmusesmampremium-
pricemapproach mto mattractmcustomers.
a. True
b. False

ANSWER:m True

m 9.mCreditorsmhavempreference mto massetsmbehind mstockholdersmif mambusinessmfails.
a. True
b. False

ANSWER:m False

m 10.mAmliability mismamlegalmobligationmto mrepaymthemamountmborrowed maccordingmto mthemtermsmofmthemborrowingmagreement.
a. True
b. False

ANSWER:m True

m 11.mThembalance msheetmrepresentsmthemaccountingmequation.
a. True
b. False

ANSWER:m True

m 12.mAmprimary mdisadvantage mof mcorporationsmismthatmthemfinancialmresourcesmavailable mto mthemmaremlimited.
a. True
b. False

ANSWER:m False

m 13.mAssetsmaremacquired mthrough minvestingmactivitiesmwhen mresourcesmarempurchased.
a. True
b. False

ANSWER:m True

m 14.mThemobjective mof mmostmbusinessesmismto mmaximize mprofits.
a. True
b. False

ANSWER:m True




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,Name: Class: Date:

Chapm 01 m10em Warre
n
m 15.mThemstockholders' mequity mof mamcompany mshould mequalmthemsummof mitsmtotalmassetsmand mtotalmliabilities.
a. True
b. False

ANSWER:m False

m 16.mThembranch mof maccountingmrelated mto mthemmanagement'smfinancialmdecisionsmismknown masmfinancialmaccounting.
a. True
b. False

ANSWER:m False

m 17.mAllmmerchandisingmbusinessesmaremorganized masmcorporations.
a. True
b. False

ANSWER:m False

m 18.mStockholdersmof mamcorporation maremitsminternalmstakeholders.
a. True
b. False

ANSWER:m False

m 19.mThembasicmtypemof mstock missued mto mownersmismcalled mcommon mstock.
a. True
b. False

ANSWER:m True

m 20.mAmbusinessmstakeholdermhasman minterestmin mthemeconomic mperformance mof mamcompany.
a. True
b. False

ANSWER:m True

m 21.mManufacturingmbusinessesmchange mbasicminputsminto mproductsmthatmaremsold mto mindividualmcustomers.
a. True
b. False

ANSWER:m True

m 22.mCompaniesmusingmamlow-costmemphasismprovidemproductsmand mservicesmthatmcompete mon mfeaturesmothermthan mprice.
a. True
b. False

ANSWER:m False


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, Name: Class: Date:

Chapm 01 m10em Warre
n
Indicate m them answerm choicem thatm bestm completesm them statementm orm answersm them question.
m 23.mWhen mambusinessmborrowsmmoney,mwhich mof mthemfollowingmismincurred?
a. An maccumulated mdepletion
b. Amliability
c. Amloss
d. An maccrued mexpenditure

ANSWER:m b

m 24.mWhatmismthemprimary mobjective mof mmostmbusinesses?
a. To mmaximize mprofits
b. To mpay mdividendsmto mstockholders
c. To mprovide mambenefitmto msociety
d. To mmanufacture mamquality mproduct

ANSWER:m a

m 25.mAmnotempayablemrequiresmpaymentmof mthemamountmborrowed mplusm.
a. interest
b. tax
c. overhead
d. dividend

ANSWER:m a

m 26.mIf mtheremaremno mbeginningmretained mearnings,mnetmincomemofm$31,200,mandmendingmretainedmearningsmofm$9,000,
mhowmmuch mare mdividends?

a. $40,200
b. $9,000
c. $22,200
d. $4,500

ANSWER:m c

m 27.mWhich mof mthemfollowingmismnotman mexample mof mamcapitalmmarketmstakeholder?
a. Banks
b. Owners
c. Suppliers
d. Stockholders

ANSWER:m c




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