,DOWNLOAD THE Test Bank for Financial Accounting The Impact on Decision Makers
m m m m m m m m m m m
10th Edition Porter m m
Chapter 2: Financial Statements and the Annual Report
m m m m m m m
Truem/mFalse
1. Financialmstatementsmaremintended mto mtellmthemreadermthemvaluemof mamcompany.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
2. Accountantsmaremthemmain mreason mfinancialmstatementsmaremprepared.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
3. ThemSECmcreated mthemobjectivesmof mfinancialmreporting.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
4. Thempurpose mof mfinancialmreportingmismto mprovide meconomic minformation mto mexternalmdecision mmakersmonly.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
5. An mobjective mof mfinancialmreportingmismto mreflectmeconomic minformation mconcerningmamcompany'smcash mflows.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
©m2017 mCengagemLearning®.mMay mnotmbemscanned, mcopied mor mduplicated, mor mposted mto mampublicly maccessiblemwebsite, min mwholemor min mpart.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Accounting The Impact on Decision Makers
m m m m m m m m m m m
10th Edition Porter m m
Chapterm2:m FinancialmStatementsmand mthemAnnualmRepo
rt
6. Themconceptmof mconservatism mismthemcapacity mof minformation mto mmakemamdifference min mamdecision.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-02 m-mLO:m02-02
KEYWORDS: Bloom's:mRemembering
7. Materiality mdealsmwith mtheminsignificance mof man merrormin maccountingminformation.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-02 m-mLO:m02-02
KEYWORDS: Bloom's:mRemembering
8. Mostmbusinessesmhaveman moperatingmcyclemof mgreatermthan monemyear.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
9. Currentmassets,mothermthanmcash,maremexpectedmto mbemsoldmormconsumed mbeyond mamcompany'smnormalmoperatingmcycle.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
10. Obligationsmrelatedmto moperatingmactivitiesmthatmwillmbempaidmwithin mthemcompany'smoperatingmcyclemmustmbemreporte
d masmcurrentmliabilitiesmon mamclassified mbalancemsheet.
a. True
b. False
ANSWER: True
DIFFICULTY: Moderate
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
©m2017 mCengagemLearning®.mMay mnotmbemscanned, mcopied mor mduplicated, mor mposted mtomampublicly maccessiblemwebsite,min mwholem
or min mpart.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting The Impact on Decision Makers
m m m m m m m m m m m
10th Edition Porter m m
Chapterm2:m FinancialmStatementsmand mthemAnnualmRepo
rt
11. Themoperatingmcyclemformallmbusinessesmismonemyear.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
12. Amconstruction mcompany mthatmbuildsmskyscrapersmismlikely mto mhaveman moperatingmcyclemlongermthan monemyear.
a. True
b. False
ANSWER: True
DIFFICULTY: Moderate
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mApplying
13. Threemcommon mcategoriesmof mlong-
termmassetsmare:m1)mproperty,mplant,mand mequipment,m2)minvestments, mand m3)mintangibles.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
14. In mthemstockholders' mequity msectionmofmamclassifiedmbalancemsheet,mamdistinctionmismmadembetweenmamountsminveste
d mby mownersmand mamountsmaccumulated mfrommbusinessmearnings.
a. True
b. False
ANSWER: True
DIFFICULTY: Moderate
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
15. Onemprimary mpurpose mof mamclassified mbalance msheetmismto mhelp musersmevaluate mthemliquidity mof mamcompany.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-04 m-mLO:m02-04
KEYWORDS: Bloom's:mRemembering
©m2017 mCengagemLearning®.mMay mnotmbemscanned, mcopied mor mduplicated, mor mposted mtomampublicly maccessiblemwebsite,min mwholem
or min mpart.
mynursytest.store
m m m m m m m m m m m
10th Edition Porter m m
Chapter 2: Financial Statements and the Annual Report
m m m m m m m
Truem/mFalse
1. Financialmstatementsmaremintended mto mtellmthemreadermthemvaluemof mamcompany.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
2. Accountantsmaremthemmain mreason mfinancialmstatementsmaremprepared.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
3. ThemSECmcreated mthemobjectivesmof mfinancialmreporting.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
4. Thempurpose mof mfinancialmreportingmismto mprovide meconomic minformation mto mexternalmdecision mmakersmonly.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
5. An mobjective mof mfinancialmreportingmismto mreflectmeconomic minformation mconcerningmamcompany'smcash mflows.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-01 m-mLO:m03-01
KEYWORDS: Bloom's:mRemembering
©m2017 mCengagemLearning®.mMay mnotmbemscanned, mcopied mor mduplicated, mor mposted mto mampublicly maccessiblemwebsite, min mwholemor min mpart.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Accounting The Impact on Decision Makers
m m m m m m m m m m m
10th Edition Porter m m
Chapterm2:m FinancialmStatementsmand mthemAnnualmRepo
rt
6. Themconceptmof mconservatism mismthemcapacity mof minformation mto mmakemamdifference min mamdecision.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-02 m-mLO:m02-02
KEYWORDS: Bloom's:mRemembering
7. Materiality mdealsmwith mtheminsignificance mof man merrormin maccountingminformation.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-02 m-mLO:m02-02
KEYWORDS: Bloom's:mRemembering
8. Mostmbusinessesmhaveman moperatingmcyclemof mgreatermthan monemyear.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
9. Currentmassets,mothermthanmcash,maremexpectedmto mbemsoldmormconsumed mbeyond mamcompany'smnormalmoperatingmcycle.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
10. Obligationsmrelatedmto moperatingmactivitiesmthatmwillmbempaidmwithin mthemcompany'smoperatingmcyclemmustmbemreporte
d masmcurrentmliabilitiesmon mamclassified mbalancemsheet.
a. True
b. False
ANSWER: True
DIFFICULTY: Moderate
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
©m2017 mCengagemLearning®.mMay mnotmbemscanned, mcopied mor mduplicated, mor mposted mtomampublicly maccessiblemwebsite,min mwholem
or min mpart.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting The Impact on Decision Makers
m m m m m m m m m m m
10th Edition Porter m m
Chapterm2:m FinancialmStatementsmand mthemAnnualmRepo
rt
11. Themoperatingmcyclemformallmbusinessesmismonemyear.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
12. Amconstruction mcompany mthatmbuildsmskyscrapersmismlikely mto mhaveman moperatingmcyclemlongermthan monemyear.
a. True
b. False
ANSWER: True
DIFFICULTY: Moderate
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mApplying
13. Threemcommon mcategoriesmof mlong-
termmassetsmare:m1)mproperty,mplant,mand mequipment,m2)minvestments, mand m3)mintangibles.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
14. In mthemstockholders' mequity msectionmofmamclassifiedmbalancemsheet,mamdistinctionmismmadembetweenmamountsminveste
d mby mownersmand mamountsmaccumulated mfrommbusinessmearnings.
a. True
b. False
ANSWER: True
DIFFICULTY: Moderate
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-03 m-mLO:m02-03
KEYWORDS: Bloom's:mRemembering
15. Onemprimary mpurpose mof mamclassified mbalance msheetmismto mhelp musersmevaluate mthemliquidity mof mamcompany.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
LEARNINGmOBJECTIVES:m FACC.PONO.13.02-04 m-mLO:m02-04
KEYWORDS: Bloom's:mRemembering
©m2017 mCengagemLearning®.mMay mnotmbemscanned, mcopied mor mduplicated, mor mposted mtomampublicly maccessiblemwebsite,min mwholem
or min mpart.
mynursytest.store
