ACCOUNTING IN ACTION

CHAPTER 1

ACCOUNTING IN ACTION

SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S

TAXONOMY

Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements

1.1 K 9.1 K 17.2 K 25.4K

sg

33. 1 K

2.1 K 10.1 K 18.2 K 26.4K

sg

34. 1 K

3.1 C 11.1 K 19.2 K 27.4K

sg

35. 2 K

4.1 K 12.2 K 20.2 C 28.5C

sg

36. 2 C

5.1 K 13.2 K 21.3 K 29.5C

sg

37. 2 K

6.1 C 14.2 K 22.3 K 30.6C

sg

38. 3 K

7.1 K 15.2 K 23.3 K 31.6K

sg

39. 4 K

8.1 C 16.2 K 24.4 K 32.6K

sg

40. 5 K

Multiple Choice Questions

41.1 K 69.2 C 97.3 K 125.5K

st

153. 1 K

42.1 K 70.2 K 98.3 K 126.5K

st

154. 1 K

43.1 K 71.2 K 99.3 K 127.5AP

sg

155. 2 K

44.1 C 72.2 C 100.3 C 129.5AP

st

156. 2 K

45.1 K 73.2 K 101.3 K 129.5AP

sg

157. 2 K

46.1 K 74.2 K 102.3 C 130.5K

st

158. 2 K

47.1 K 75.2 K 103.3AP 131.5C

sg

159. 3 K

48.1 K 76.2 K 104.3AP 132.5K

sg

160. 4 K

49.1 C 77.2 K 105.3AP 133.5K

sg

161. 4 C

50.1 C 78.2 K 106.3AP 134.5AP

sg

162. 5 C

51.1 C 79.2 C 107.3AP 135.5AP

sg

163. 6 K

52.1 C 80.2 C 108.3 C 136.5AP 164.7 K

53.1 C 81.2 K 109.3AP 137.5AP 165.7 K

54.1 C 82.2 K 110.3 C 138.5AP 166.7 K

a

55. 6 K 83.2 C 111.3 C 139.5AP 167.7 K

a

56. 6 K 84.2 K 112.4 C 140.5AP 168.7 K

a

57. 6 K 85.2 K 113.4 C 141.5AP 169.7 K

a

58. 6 C 86.2 K 114.3 C 142.5AP 170.7 K

59.1 K 87.2 K 115.4 C 143.5AP 171.7 K

60.1 K 88.3 K 116.4 K 144.5AP 172.7 K

61.2 C 89.3 K 117.4 C 145.5AP 173.7 K

62.2 K 90.3 K 118.4 C 146.5AP 174.7 K

63.2 C 91.3 C 119.4 C 147.5AN 175.7 K

64.2 K 92.3 K 120.4AN 148.5AN 176.7 K

65.2 K 93.3 K 121.4 C 149.5AN 177.7 K

66.2 C 94.3 C 122.5 C 150.5AN

67.2 K 95.3 K 123.5 C 151.5AN

68.2 K 96.3 K 124.5 K

sg

152. 1 K

sg This question also appears in the Study Guide.st This question also appears in a self-test at the student companion website.a This question covers a topic in an appendix to the chapter.Accounting P rinciples 12e Jerry Weygandt Paul Kimmel Donald Kieso (Test Bank All Chapt ers, 100% Original V erified, A+ Grade) 1 / 4

Test Bank for Accounting Principles, Twelfth Edition

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SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S

TAXONOMY

Brief Exercises

178.1 C 181.3AP 184.4 C 187.5AP

179.3 K 182.3AP 185.5AP 188.5AP

180.3 K 183.3 C 186.5 C

Exercises

189.1,4K 197.3 C 205.4 C 213.5AP 221.5AN

190.3 C 198.3,4C 206.4 C 214.5AP 222.5 C

191.3 C 199.3,4C 207.4AP 215.5AP 223.5AP

192.3AP 200.3,4AP 208.4 C 216.5AN 224.5AP

193.3 C 201.4AP 209.4 C 217.5AP 225.5AP

194.3AP 202.4AP 210.4 C 218.5AP

195.3AN 203.4 C 211.4 C 219.5 C

196.3AN 204.4AN 212.4 C 220.5AP

Completion Statements

226.1 K 228.1 K 230.2 K 232.2 K 234.3 K

227.1 K 229.1 K 231.2 K 233.3 K 235.5 K

SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPE

Item Type Item Type Item Type Item Type Item Type Item Type Item Type Learning Objective 1

1.TF 7.TF 34.TF 46.MC 52.MC 153.MC 228.C

2.TF 8.TF 41.MC 47.MC 53.MC 154.MC 229.C

3.TF 9.TF 42.MC 48.MC 54.MC 178.BE

4.TF 10.TF 43.MC 49.MC 59.MC 189.Ex

5.TF 11.TF 44.MC 50.MC 60.MC 226.C

6.TF 33.TF 45.MC 51.MC 152.MC 227.C

Learning Objective 2

12.TF 19.TF 63.MC 70.MC 77.MC 84.MC 158.MC

13.TF 20.TF 64.MC 71.MC 78.MC 85.MC 230.C

14.TF 35.TF 65.MC 72.MC 79.MC 86.MC 231.C

15.TF 36.TF 66.MC 73.MC 80.MC 87.MC 232.C

16.TF 37.TF 67.MC 74.MC 81.MC 155.MC

17.TF 61.MC 68.MC 75.MC 82.MC 156.MC

18.TF 62.MC 69.MC 76.MC 83.MC 157.MC

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Accounting in Action

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SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPE

Learning Objective 3

• TF 91. MC 98. MC 105. MC 114. MC 190. Ex 197. Ex
• TF 92. MC 99. MC 106. MC 159. MC 191. Ex 198. Ex
• TF 93. MC 100. MC 107. MC 179. BE 192. Ex 199. Ex
• TF 94. MC 101. MC 108. MC 180. BE 193. Ex 200. Ex
• MC 95. MC 102. MC 109. MC 181. BE 194. Ex 233. C
• MC 96. MC 103. MC 110. MC 182. BE 195. Ex 234. C
• MC 97. MC 104. MC 111. MC 183. BE 196. Ex

Learning Objective 4

• TF 112. MC 118. MC 161. MC 200. Ex 205. Ex 210. Ex
• TF 113. MC 119. MC 184. BE 201. Ex 206. Ex 211. Ex
• TF 115. MC 120. MC 189. Ex 202. Ex 207. Ex 212. Ex
• TF 116. MC 121. MC 198. Ex 203. Ex 208. Ex
• TF 117. MC 160. MC 199. Ex 204. Ex 209. Ex

a iverning ObjectLe5

• TF 127. MC 135. MC 143. MC 151. MC 215. Ex 223. Ex
• TF 128. MC 136. MC 144. MC 162. MC 216. Ex 224. Ex
• TF 129. MC 137. MC 145. MC 185. BE 217. Ex 225. Ex
• MC 130. MC 138. MC 146. MC 186. BE 218. Ex 235. C
• MC 131. MC 139. MC 147. MC 187. BE 219. Ex
• MC 132. MC 140. MC 148. MC 188. BE 220. Ex
• MC 133. MC 141. MC 149. MC 213. Ex 221. Ex
• MC 134. MC 142. MC 150. MC 214. Ex 222. Ex

Learning Objective 6 a

30. TF

a

32. TF

a

56. MC

a

58. MC

a

31. TF

a

55. MC

a

57. MC

a

163. MC

Learning Objective 7

164. MC 166. MC 168. MC 170. MC 172. MC 174. MC 176. MC

165. MC 167. MC 169. MC 171. MC 173. MC 175. MC 177. MC

Note: TF = True-False BE = Brief Exercise C = Completion

MC = Multiple Choice Ex = Exercise

This chapter also contains one set of ten Matching questions and Short-Answer Essay questions.A summary table of all learning outcomes, including AACSB, AICPA, and IMA professional standards, is available on the Weygandt Accounting Principles 12e instructor web site.

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Test Bank for Accounting Principles, Twelfth Edition

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CHAPTER LEARNING OBJECTIVES

• Identify the activities and users associated with accounting. Accounting is an information

system that identifies, records, and communicates the economic events of an organization to interested users. The major users and uses of accounting are as follows (a) Management uses accounting information to plan, organize, and run the business. (b) Investors (owners) decide whether to buy, hold, or sell their financial interests on the basis of accounting data. (c) Creditors (suppliers and bankers) evaluate the risks of granting credit or lending money on the basis of accounting information. Other groups that use accounting information are taxing authorities, regulatory agencies, customers, and labor unions.

• Explain the building blocks of accounting: ethics, principles, and assumptions. Ethics

are the standards of conduct by which actions are judged as right or wrong. Effective financial reporting depends on sound ethical behavior.Generally accepted accounting principles are a common set of standards used by accountants.The monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in terms of money. The economic entity assumption requires that the activities of each economic entity be kept separate from the activities of its owner(s) and other economic entities.

• State the accounting equation, and define its components. The basic accounting

equation is:

Assets = Liabilities + Owner's Equity Assets are resources owned by a business. Liabilities are creditorship claims on total assets.Owner's equity is the ownership claim on total assets.

The expanded accounting equation is:

Assets = Liabilities + Owner's Capital − Owner's Drawings + Revenues − Expenses Owner's Capital is assets the owner puts into the business. Owner's drawings are the Assets the owner withdraws for personal use. Revenues are increases in assets resulting from income-earning activities. Expenses are the costs of assets consumed of services used in the process of earning revenue.

• Analyze the effects of business transactions on the accounting equation. Each business

transaction must have a dual effect on the accounting equation. For example, if an individual asset increases, there must be a corresponding (1) decrease in another asset, or (2) increase in a specific liability, or (3) increase in owner's equity.

• Describe the four financial statements and how they are prepared. An income statement

presents the revenues and expenses, and resulting net income or net loss for a specific period of time. An owner's equity statement summarizes the changes in owner's equity for a specific period of time. A balance sheet reports the assets, liabilities, and owner's equity at a specific date. A statement of cash flows summarizes information about the cash inflows (receipts) and outflows (payments) for a specific period of time.a

• Explain the career opportunities in accounting. Accounting offers many different jobs in

fields such as public and private accounting, governmental, and forensic accounting.Accounting is a popular major because there are many different types of jobs, with unlimited potential for career advancement..

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