Test Bank for Fundamental Accounting Principles, Volume 1, 18th Canadian Edition by Larson

Complete Answers Included ✅

Short Questions Answers Included ✅
Chap 01 18ce - Larson Vol 1
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Describe the purpose and importance of accounting.
Topic : 01-01 What Is Accounting?
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-01 Accounting is an information system that ide...



2) Accounting information helps people make better decisions about the performance of a
business.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Describe the purpose and importance of accounting.
Topic : 01-01 What Is Accounting?
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-02 Accounting information helps people make
bet...




1

,3) The main objective of accounting is to help people to invest in new products and businesses.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Describe the purpose and importance of accounting.
Topic : 01-01 What Is Accounting?
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-03 The main objective of accounting is to help ...



4) "Recordkeeping" is another term for "accounting".
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-01 Describe the purpose and importance of accounting.
Topic : 01-01 What Is Accounting?
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-04 "Recordkeeping" is another term
for...



5) A sole proprietorship is a business owned by one or more persons.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-02 Describe forms of business organization.
Topic : 01-02 Forms of Organization
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-05 A sole proprietorship is a business owned by...




2

,6) A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business license.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-02 Describe forms of business organization.
Topic : 01-02 Forms of Organization
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-06 A partnership requires no special legal requ...



7) Ownership of a corporation is divided into units called shares.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-02 Describe forms of business organization.
Topic : 01-02 Forms of Organization
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-07 Ownership of a corporation is divided into u...



8) In the partnership form of business, the owners of a business are called shareholders.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Easy
Learning Objective : 01-02 Describe forms of business organization.
Topic : 01-02 Forms of Organization
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-08 In the partnership form of business, the own...




3

, 9) Unlimited liability is an advantage for both a proprietorship and a partnership.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Medium
Learning Objective : 01-02 Describe forms of business organization.
Topic : 01-02 Forms of Organization
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-09 Unlimited liability is an advantage for both...



10) Although a proprietorship is not a separate legal entity, a partnership is.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Medium
Learning Objective : 01-02 Describe forms of business organization.
Topic : 01-02 Forms of Organization
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-10 Although a proprietorship is not a separate ...



11) A corporation is responsible for its actions and any debts incurred. It can enter into its own
contracts, and it can buy, own, and sell property.
⊚ true
⊚ false

Question Details
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : Medium
Learning Objective : 01-02 Describe forms of business organization.
Topic : 01-02 Forms of Organization
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB 01-11 A corporation is responsible for its actions...




4