TEST BANK
Financial Accounting Information for Decisions
11th Edition By John Wild chapter 1 to 12
1
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,Table of contents
Chapter 1: Introducing Financial Statements
Chapter 2: Financial Statements and the Accounting System
Chapter 3: Adjusting Accounts for Financial Statements
Chapter 4: Reporting and Analyzing Merchandising Operations
Chapter 5: Reporting and Analyzing Inventories
Chapter 6: Reporting and Analyzing Cash, Fraud, and Internal Control
Chapter 7: Reporting and Analyzing Receivables
Chapter 8: Reporting and Analyzing Long Term Assets
Chapter 9: Reporting and Analyzing Current Liabilities
Chapter 10: Reporting and Analyzing Long Term Liabilities
Chapter 11: Reporting and Analyzing Equity
Chapter 12: Reporting and Analyzing Cash Flows
Chapter 13; Analyzing and Interpreting Financial Statements
2
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,Chapter 1 Introducing Financial Statements
1) Accounting is an information and measurement system that identifies, records,
and communicates relevant, reliable, and comparable information about an
organization's business activities.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either
manually or electronically.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
3) Accounting is an information and measurement system that identifies,
records, and communicates information about an organization's business
activities.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 4) Financial accounting serves external users by providing them with general-purpose
financial statements.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in,
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
5) External users of accounting information do not directly run the organization and
have limited access to its accounting information.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in,
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
6) The primary objective of managerial accounting is to provide general purpose
financial statements to help external users analyze and interpret an
organization's activities.
Answer: FALSE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in,
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
7) External auditors examine financial statements to verify that they are prepared
according to generally accepted accounting principles.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in,
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
4
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Financial Accounting Information for Decisions
11th Edition By John Wild chapter 1 to 12
1
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,Table of contents
Chapter 1: Introducing Financial Statements
Chapter 2: Financial Statements and the Accounting System
Chapter 3: Adjusting Accounts for Financial Statements
Chapter 4: Reporting and Analyzing Merchandising Operations
Chapter 5: Reporting and Analyzing Inventories
Chapter 6: Reporting and Analyzing Cash, Fraud, and Internal Control
Chapter 7: Reporting and Analyzing Receivables
Chapter 8: Reporting and Analyzing Long Term Assets
Chapter 9: Reporting and Analyzing Current Liabilities
Chapter 10: Reporting and Analyzing Long Term Liabilities
Chapter 11: Reporting and Analyzing Equity
Chapter 12: Reporting and Analyzing Cash Flows
Chapter 13; Analyzing and Interpreting Financial Statements
2
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,Chapter 1 Introducing Financial Statements
1) Accounting is an information and measurement system that identifies, records,
and communicates relevant, reliable, and comparable information about an
organization's business activities.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
2) Recordkeeping, or bookkeeping, is the recording of transactions and events, either
manually or electronically.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
3) Accounting is an information and measurement system that identifies,
records, and communicates information about an organization's business
activities.
Answer: TRUE
Difficulty: 1 Easy
Topic: Importance of Accounting
Learning Objective: 01-C1 Explain the purpose and importance of
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 4) Financial accounting serves external users by providing them with general-purpose
financial statements.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in,
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
5) External users of accounting information do not directly run the organization and
have limited access to its accounting information.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in,
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
6) The primary objective of managerial accounting is to provide general purpose
financial statements to help external users analyze and interpret an
organization's activities.
Answer: FALSE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in,
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
7) External auditors examine financial statements to verify that they are prepared
according to generally accepted accounting principles.
Answer: TRUE
Difficulty: 1 Easy
Topic: Users of Accounting Information
Learning Objective: 01-C2 Identify users and uses of, and opportunities in,
accounting. Bloom's: Remember
AACSB: Communication
AICPA: BB Industry; FN Decision Making
4
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
