,TESTBANK FOR Accounting Principles 10e Canadian
Volume 1 Weygandt
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
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:
,Accounting Principles, 10Ce (Weygandt)
Chapter 1 Accounting in Action
1.1 True-False/Multiple Choice
1) Accounting is the information system that identifies, records, and communicates the economic
events of an organization to a wide variety of interested users.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
2) A working knowledge of accounting can be useful to doctors or lawyers.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
3) The main objective of financial statements is to provide useful information to management.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
4) Sales managers are an example of an external user of accounting information.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
1
,5) Creditors are an example of an internal user of accounting information.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
6) Accounting information is used only by external users with a direct financial interest in a
company.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
7) In a proprietorship, there may be two or more owners.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
8) One of the disadvantages of a proprietorship is that there is unlimited liability for the owner.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
9) Under the proprietorship form of business organization, no legal distinction is made between
the business as an economic unit and its owner.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
2
,10) A partnership must have at least two people in the partnership.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
11) In a partnership, all of the partners will generally have unlimited liability for the debts of the
partnerships.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
12) A corporation may only be formed under federal legislation.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
13) A corporation is only subject to the federal laws of corporations.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
14) A corporation may be formed under provincial, federal, or territorial legislation.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
3
,15) A corporation's ownership is divided into transferable shares.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
16) One of the main advantages of a corporation is limited liability for the shareholders of the
corporation.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
17) Owners of a corporation are responsible for reporting the business profits on their personal
income tax returns.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
18) An advantage of the corporation is that the shares of the corporation are easily transferable.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
19) Ethics are critical in the preparation of accounting information.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Professional and Ethical Behaviour
AACSB: Ethics
4
,20) Only the accountants should be concerned with ethics when the financial statements are
being prepared.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Professional and Ethical Behaviour
AACSB: Ethics
21) In a situation with an ethical consideration, there is only one ethical course of action that can
be followed.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Professional and Ethical Behaviour
AACSB: Ethics
22) A private company is one that issues shares to the public.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
23) GAAP stands for Generally Accepted Accounting Principles.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
5
,24) In Canada, the main standard-setting body is the Accounting Standards Board.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
25) Corporations incorporated under provincial legislation report under ASPE and corporations
incorporated under federal legislation report under IFRS.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
26) Publicly traded corporations can choose to report under either ASPE or IFRS.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
27) Both IFRS and ASPE are considered "principles-based" as opposed to "rules-based"
standards.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
6
,28) The going concern assumption is the assumption that a company will continue to operate in
the foreseeable future.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
29) The going concern assumption is the assumption that a company will NOT be successful in
the foreseeable future.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
30) The reporting entity concept requires that an entity's business activities be combined with the
activities of its owner for financial reporting purposes.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
31) Recognition is the process of recording a transaction in the accounting records.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
7
, 32) Measurement is the process of determining the amount that should be recognized.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
33) Fair value measurements are always more relevant to users of the financial statements.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
34) The cost and fair value of an asset are the same at the time of acquisition and in all
subsequent periods.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
35) The monetary unit concept assumes that all transactions take place in Canadian dollars.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
8
Volume 1 Weygandt
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
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:
,Accounting Principles, 10Ce (Weygandt)
Chapter 1 Accounting in Action
1.1 True-False/Multiple Choice
1) Accounting is the information system that identifies, records, and communicates the economic
events of an organization to a wide variety of interested users.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
2) A working knowledge of accounting can be useful to doctors or lawyers.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
3) The main objective of financial statements is to provide useful information to management.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
4) Sales managers are an example of an external user of accounting information.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
1
,5) Creditors are an example of an internal user of accounting information.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
6) Accounting information is used only by external users with a direct financial interest in a
company.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Identify the uses and users of accounting and the objective of financial
reporting.
Section Reference: Why Is Accounting Important?
CPA: Financial Reporting
AACSB: Analytic
7) In a proprietorship, there may be two or more owners.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
8) One of the disadvantages of a proprietorship is that there is unlimited liability for the owner.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
9) Under the proprietorship form of business organization, no legal distinction is made between
the business as an economic unit and its owner.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
2
,10) A partnership must have at least two people in the partnership.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
11) In a partnership, all of the partners will generally have unlimited liability for the debts of the
partnerships.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
12) A corporation may only be formed under federal legislation.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
13) A corporation is only subject to the federal laws of corporations.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
14) A corporation may be formed under provincial, federal, or territorial legislation.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
3
,15) A corporation's ownership is divided into transferable shares.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
16) One of the main advantages of a corporation is limited liability for the shareholders of the
corporation.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
17) Owners of a corporation are responsible for reporting the business profits on their personal
income tax returns.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
18) An advantage of the corporation is that the shares of the corporation are easily transferable.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Compare the different forms of business organization.
Section Reference: Forms of Business Organization
CPA: Financial Reporting
AACSB: Analytic
19) Ethics are critical in the preparation of accounting information.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Professional and Ethical Behaviour
AACSB: Ethics
4
,20) Only the accountants should be concerned with ethics when the financial statements are
being prepared.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Professional and Ethical Behaviour
AACSB: Ethics
21) In a situation with an ethical consideration, there is only one ethical course of action that can
be followed.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Professional and Ethical Behaviour
AACSB: Ethics
22) A private company is one that issues shares to the public.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
23) GAAP stands for Generally Accepted Accounting Principles.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
5
,24) In Canada, the main standard-setting body is the Accounting Standards Board.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
25) Corporations incorporated under provincial legislation report under ASPE and corporations
incorporated under federal legislation report under IFRS.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
26) Publicly traded corporations can choose to report under either ASPE or IFRS.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
27) Both IFRS and ASPE are considered "principles-based" as opposed to "rules-based"
standards.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
6
,28) The going concern assumption is the assumption that a company will continue to operate in
the foreseeable future.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
29) The going concern assumption is the assumption that a company will NOT be successful in
the foreseeable future.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
30) The reporting entity concept requires that an entity's business activities be combined with the
activities of its owner for financial reporting purposes.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
31) Recognition is the process of recording a transaction in the accounting records.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
7
, 32) Measurement is the process of determining the amount that should be recognized.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
33) Fair value measurements are always more relevant to users of the financial statements.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
34) The cost and fair value of an asset are the same at the time of acquisition and in all
subsequent periods.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
35) The monetary unit concept assumes that all transactions take place in Canadian dollars.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Explain the building blocks of accounting: ethics and the concepts
included in the conceptual framework.
Section Reference: Generally Accepted Accounting Principles
CPA: Financial Reporting
AACSB: Analytic
8
