,TESTBANK for Intermediate Accounting Reporting
and Analysis 4th Edition by James M. Wahlen
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Chapter 1
True / False
1. A problem arising from equal information is called information asymmetry.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
2. The demand for relevant and reliable financial information stems from the needs of the internal and
external stakeholders.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
3. The mission of the Securities and Exchange Commission is to protect investors, maintain fair, orderly,
and efficient markets, and assist in the formation of capital.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 1
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
4. The SEC uses its authority to establish accounting standards, while also enforcing regulations on
companies, exchanges, and investors.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
5. The Financial Accounting Standards Board (FASB) began in 1973 after the AICPA phased out the
Accounting Principles Board (APB).
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
6. FASB’s Emerging Issues Task Force assists and advises the FASB by identifying and addressing
timely but more narrow and specific standard setting issues.
a. True
b. False
ANSWER: True
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 2
,Chapter 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
7. The Codification is set up as a system of levels starting with sections, topics, and subtopics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
8. The Codification was established to assist in reducing the time necessary to research an accounting
issue and improve the ability to utilize accounting information that conforms with GAAP.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
9. A potential issue facing the convergence project is that many companies have entered into contracts
based upon U.S. GAAP financial reporting; many of these contracts will have to be renegotiated using
IFRS which potentially could cause some companies more harm than good.
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 1
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.5 - LO: 1.5
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
10. The balance sheet is a snapshot of a company’s financial position at a particular date.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
11. The statement of shareholders' equity reports the effects from the recognition or valuation of certain
asset or liability transactions that change Accumulated Other Comprehensive Income.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
Copyright Cengage Learning. Powered by Cognero. Page 4
,Chapter 1
12. “In carrying out their responsibilities as professionals, members should exercise sensitive professional
and moral judgments in all their activities.” This is the Integrity Principle of the AICPA Code of
Professional Conduct.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.7 - LO: 1.7
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
13. “Members should act in a way that will service the public interest, honor the public trust, and
demonstrate commitment to professionalism.” This is the Public Interest Principle of the AICPA’s Code
of Professional Conduct.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.7 - LO: 1.7
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
Multiple Choice
14. Creditors' information needs revolve around all of the following decisions, except
a. extending credit
b. maintaining a credit relationship
c. determining the value of a company
d. investing in common stock
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
Copyright Cengage Learning. Powered by Cognero. Page 5
,Chapter 1
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
15. Which of the following is an internal user of a company's financial information?
a. company treasurer
b. shareholder in the company
c. bank lending to the company
d. union
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
16. After formulating a strategic plan, a company will engage in what three types of activities?
a. Planning, operating, and selling
b. Investing, operating, and selling
c. Financing, investing, and operating
d. Operating, planning, and financing
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Reporting
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
17. What is Financial Reporting?
Copyright Cengage Learning. Powered by Cognero. Page 6
,Chapter 1
a. The process of communicating internal accounting information to existing and potential
investors, creditors, lenders, and other external decision makers.
b. The process of communicating financial accounting information to existing and potential
investors, creditors, lenders, and other external decision makers.
c. The process of preparing financial accounting information.
d. The process of communicating the strategic plan to existing and potential investors, creditors,
lenders, and other external decision makers.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Reporting
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
18. When making decisions, equity investors are interested in assessing
a. the company's ability to generate cash flows.
b. management's ability to increase the capital providers' investments.
c. the company's ability to pay dividends.
d. All of these choices
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Reporting
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
19. Which of the following is not a decision that external stakeholders of a company's financial
information would make?
a. whether or not to extend credit to the company
b. whether or not to hold the company's stock
c. whether or not the company should expand into foreign markets
d. whether or not to ask for an increase in employees' benefits during union contract negotiations
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
Copyright Cengage Learning. Powered by Cognero. Page 7
, Chapter 1
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Reporting
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
20. As a potential equity investor, what information about a company would you be least interested in
discovering prior to making an investment decision?
a. What is management's plan for the future?
b. What is the company’s future potential for profitable operations?
c. Does the company have positive cash flows?
d. What are the current employee benefits and compensation packages?
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
21. The primary reason that external financial reporting and internal managerial accounting have
somewhat different objectives is because they
a. need information in different formats.
b. provide information for different decisions.
c. need information in different geographic locations.
d. need information at different times.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
Copyright Cengage Learning. Powered by Cognero. Page 8
and Analysis 4th Edition by James M. Wahlen
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Chapter 1
True / False
1. A problem arising from equal information is called information asymmetry.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
2. The demand for relevant and reliable financial information stems from the needs of the internal and
external stakeholders.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
3. The mission of the Securities and Exchange Commission is to protect investors, maintain fair, orderly,
and efficient markets, and assist in the formation of capital.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 1
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
4. The SEC uses its authority to establish accounting standards, while also enforcing regulations on
companies, exchanges, and investors.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
5. The Financial Accounting Standards Board (FASB) began in 1973 after the AICPA phased out the
Accounting Principles Board (APB).
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
6. FASB’s Emerging Issues Task Force assists and advises the FASB by identifying and addressing
timely but more narrow and specific standard setting issues.
a. True
b. False
ANSWER: True
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 2
,Chapter 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
7. The Codification is set up as a system of levels starting with sections, topics, and subtopics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
8. The Codification was established to assist in reducing the time necessary to research an accounting
issue and improve the ability to utilize accounting information that conforms with GAAP.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
9. A potential issue facing the convergence project is that many companies have entered into contracts
based upon U.S. GAAP financial reporting; many of these contracts will have to be renegotiated using
IFRS which potentially could cause some companies more harm than good.
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 1
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.5 - LO: 1.5
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
10. The balance sheet is a snapshot of a company’s financial position at a particular date.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
11. The statement of shareholders' equity reports the effects from the recognition or valuation of certain
asset or liability transactions that change Accumulated Other Comprehensive Income.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
Copyright Cengage Learning. Powered by Cognero. Page 4
,Chapter 1
12. “In carrying out their responsibilities as professionals, members should exercise sensitive professional
and moral judgments in all their activities.” This is the Integrity Principle of the AICPA Code of
Professional Conduct.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.7 - LO: 1.7
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
13. “Members should act in a way that will service the public interest, honor the public trust, and
demonstrate commitment to professionalism.” This is the Public Interest Principle of the AICPA’s Code
of Professional Conduct.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.7 - LO: 1.7
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
Multiple Choice
14. Creditors' information needs revolve around all of the following decisions, except
a. extending credit
b. maintaining a credit relationship
c. determining the value of a company
d. investing in common stock
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
Copyright Cengage Learning. Powered by Cognero. Page 5
,Chapter 1
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
15. Which of the following is an internal user of a company's financial information?
a. company treasurer
b. shareholder in the company
c. bank lending to the company
d. union
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
16. After formulating a strategic plan, a company will engage in what three types of activities?
a. Planning, operating, and selling
b. Investing, operating, and selling
c. Financing, investing, and operating
d. Operating, planning, and financing
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Reporting
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
17. What is Financial Reporting?
Copyright Cengage Learning. Powered by Cognero. Page 6
,Chapter 1
a. The process of communicating internal accounting information to existing and potential
investors, creditors, lenders, and other external decision makers.
b. The process of communicating financial accounting information to existing and potential
investors, creditors, lenders, and other external decision makers.
c. The process of preparing financial accounting information.
d. The process of communicating the strategic plan to existing and potential investors, creditors,
lenders, and other external decision makers.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Reporting
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
18. When making decisions, equity investors are interested in assessing
a. the company's ability to generate cash flows.
b. management's ability to increase the capital providers' investments.
c. the company's ability to pay dividends.
d. All of these choices
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Reporting
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
19. Which of the following is not a decision that external stakeholders of a company's financial
information would make?
a. whether or not to extend credit to the company
b. whether or not to hold the company's stock
c. whether or not the company should expand into foreign markets
d. whether or not to ask for an increase in employees' benefits during union contract negotiations
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
Copyright Cengage Learning. Powered by Cognero. Page 7
, Chapter 1
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Reporting
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
20. As a potential equity investor, what information about a company would you be least interested in
discovering prior to making an investment decision?
a. What is management's plan for the future?
b. What is the company’s future potential for profitable operations?
c. Does the company have positive cash flows?
d. What are the current employee benefits and compensation packages?
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
21. The primary reason that external financial reporting and internal managerial accounting have
somewhat different objectives is because they
a. need information in different formats.
b. provide information for different decisions.
c. need information in different geographic locations.
d. need information at different times.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN:
Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
Copyright Cengage Learning. Powered by Cognero. Page 8
