, TESTBANK FOR Accounting Principles, 15e
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, 15e (Weygandt)
Chapter 1 Accounting in Action
1) Owners of business firms are the only people who need accounting information.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Reporting, PC: None
Min.: 1
2) Transactions that can be measured in dollars and cents are recorded in the financial
information system.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
3) The hiring of a new company president is an economic event recorded by the financial
information system.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
4) Management of a business enterprise is the major external user of information.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
1
,5) Accounting communicates financial information about a business enterprise to both internal
and external users.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
6) Accounting information is used only by external users with a financial interest in a business
enterprise.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
7) Financial statements are the major means of communicating accounting information to
interested parties.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
8) Bookkeeping and accounting are one and the same because the bookkeeping function includes
the accounting process.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
2
,9) The origins of accounting are attributed to Luca Pacioli, a famous mathematician.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
10) The study of accounting is not useful for a business career unless your career objective is to
become an accountant.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
11) A working knowledge of accounting is not relevant to a lawyer or an architect.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
12) Identifying is the process of keeping a chronological diary of events measured in dollars and
cents.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
13) Management consulting includes examining the financial statements of companies and
expressing an opinion as to the fairness of their presentation.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
3
,Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
14) A partnership must have more than one owner.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
15) The economic entity assumption requires that the activities of an entity be kept separate and
distinct from the activities of its owner and all other economic entities.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
16) The monetary unit assumption states that transactions that can be measured in terms of
money should be recorded in the accounting records.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
17) Accountants rely on a fundamental business concept–ethical behavior–in reporting financial
information.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
4
,5
,18) The primary accounting standard-setting body in the United States is the International
Accounting Standards Board.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
19) The Financial Accounting Standards Board is a part of the Securities and Exchange
Commission.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
20) The Securities and Exchange Commission oversees U.S. financial markets and accounting
standard-setting bodies.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
21) The cost and fair market value of an asset are the same at the time of acquisition and in all
subsequent periods.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
6
,22) Even though a partnership is not a separate legal entity, for accounting purposes the
partnership affairs should be kept separate from the personal activities of the owners.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
23) Accountants do not have to worry about issues of ethics.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: Ethics/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
Professional Behavior
Min.: 1
24) At the time an asset is acquired, cost and fair value should be the same.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
25) The monetary unit assumption requires that all dollar amounts be rounded to the nearest
dollar.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
26) In order to possess future service potential, an asset must have physical substance.
Answer: FALSE
Diff: 1
LO: 3. State the accounting equation, and define its components.
Bloom/IFRS: K
7
, AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
27) Owners' claims to total business assets take precedence over the claims of creditors because
owners invest assets in the business and are liable for losses.
Answer: FALSE
Diff: 1
LO: 3. State the accounting equation, and define its components.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
28) The basic accounting equation states that Assets = Liabilities.
Answer: FALSE
Diff: 1
LO: 3. State the accounting equation, and define its components.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
29) The basic accounting equation is in balance when the creditor and ownership claims against
the business equal the assets.
Answer: TRUE
Diff: 1
LO: 3. State the accounting equation, and define its components.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
30) Accountants record both internal and external transactions.
Answer: TRUE
Diff: 1
LO: 4. Analyze the effects of business transactions on the accounting equation.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
31) Internal transactions do not affect the basic accounting equation because they are economic
8
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, 15e (Weygandt)
Chapter 1 Accounting in Action
1) Owners of business firms are the only people who need accounting information.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Reporting, PC: None
Min.: 1
2) Transactions that can be measured in dollars and cents are recorded in the financial
information system.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
3) The hiring of a new company president is an economic event recorded by the financial
information system.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
4) Management of a business enterprise is the major external user of information.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
1
,5) Accounting communicates financial information about a business enterprise to both internal
and external users.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
6) Accounting information is used only by external users with a financial interest in a business
enterprise.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
7) Financial statements are the major means of communicating accounting information to
interested parties.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
8) Bookkeeping and accounting are one and the same because the bookkeeping function includes
the accounting process.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
2
,9) The origins of accounting are attributed to Luca Pacioli, a famous mathematician.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
10) The study of accounting is not useful for a business career unless your career objective is to
become an accountant.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
11) A working knowledge of accounting is not relevant to a lawyer or an architect.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
12) Identifying is the process of keeping a chronological diary of events measured in dollars and
cents.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
13) Management consulting includes examining the financial statements of companies and
expressing an opinion as to the fairness of their presentation.
Answer: FALSE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
3
,Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
14) A partnership must have more than one owner.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
15) The economic entity assumption requires that the activities of an entity be kept separate and
distinct from the activities of its owner and all other economic entities.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
16) The monetary unit assumption states that transactions that can be measured in terms of
money should be recorded in the accounting records.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
17) Accountants rely on a fundamental business concept–ethical behavior–in reporting financial
information.
Answer: TRUE
Diff: 1
LO: 1. Identify the activities and users associated with accounting.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
4
,5
,18) The primary accounting standard-setting body in the United States is the International
Accounting Standards Board.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
19) The Financial Accounting Standards Board is a part of the Securities and Exchange
Commission.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
20) The Securities and Exchange Commission oversees U.S. financial markets and accounting
standard-setting bodies.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
21) The cost and fair market value of an asset are the same at the time of acquisition and in all
subsequent periods.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
6
,22) Even though a partnership is not a separate legal entity, for accounting purposes the
partnership affairs should be kept separate from the personal activities of the owners.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
23) Accountants do not have to worry about issues of ethics.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: Ethics/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
Professional Behavior
Min.: 1
24) At the time an asset is acquired, cost and fair value should be the same.
Answer: TRUE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: C
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
25) The monetary unit assumption requires that all dollar amounts be rounded to the nearest
dollar.
Answer: FALSE
Diff: 1
LO: 2. Explain the building blocks of accounting: ethics, principles, and assumptions.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
26) In order to possess future service potential, an asset must have physical substance.
Answer: FALSE
Diff: 1
LO: 3. State the accounting equation, and define its components.
Bloom/IFRS: K
7
, AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
27) Owners' claims to total business assets take precedence over the claims of creditors because
owners invest assets in the business and are liable for losses.
Answer: FALSE
Diff: 1
LO: 3. State the accounting equation, and define its components.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
28) The basic accounting equation states that Assets = Liabilities.
Answer: FALSE
Diff: 1
LO: 3. State the accounting equation, and define its components.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
29) The basic accounting equation is in balance when the creditor and ownership claims against
the business equal the assets.
Answer: TRUE
Diff: 1
LO: 3. State the accounting equation, and define its components.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
30) Accountants record both internal and external transactions.
Answer: TRUE
Diff: 1
LO: 4. Analyze the effects of business transactions on the accounting equation.
Bloom/IFRS: K
AACSB/IMA: None/Reporting
AICPA: BB: Governance Perspective, FC: Measurement Analysis and Interpretation, PC:
None
Min.: 1
31) Internal transactions do not affect the basic accounting equation because they are economic
8
