.png){kind=logo}
Test Bank With Test Bank For Financial Accounting Fundamentals 5e John J. Wild (All Chapters, 100% Original Verified, A+ Grade) Part 1: Test Bank: Pages 1-1884 Part 2: Solutions Manual: Pages 1885-3041 1 / 4
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.1-1 Chapter 1
ACCOUNTING IN BUSINESS
True / False Questions
- 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
Blooms: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 01-C1
Topic: Importance of Accounting
- Bookkeeping is the recording of transactions and events and is only part of accounting.
Answer: True
Blooms: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 01-C1
Topic: Importance of Accounting
3 . An accounting information system communicates data to help users make better decisions.
Answer: True
Blooms: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 01-C1
Topic: Importance of Accounting
Financial Accounting Fundamentals 5e John J. Wild (Test Bank All Chapters, 100% Original Verified, A+ Grade)
Part 1: Test Bank 2 / 4
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.1-2 4.Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.
Answer: False
Blooms: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 01-C2
Topic: Users of Accounting Information
5.Internal operating activities include research and development, distribution, and human resources.
Answer: True
Blooms: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 01-C2
Topic: Users of Accounting Information
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
Blooms: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 01-C2
Topic: Users of Accounting Information
7.External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.
Answer: True
Blooms: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 01-C2
Topic: Users of Accounting Information 3 / 4
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
1-3
- External users include lenders, shareholders, customers, and regulators.
Answer: True
Blooms: Understand
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 2 Medium
Learning Objective: 01-C2
Topic: Users of Accounting Information
- Regulators often have legal authority over certain activities of organizations.
Answer: True
Blooms: Remember
AACSB: Communication
AICPA BB: Legal
AICPA FN: Decision Making
Difficulty: 1 Easy
Learning Objective: 01-C2
Topic: Users of Accounting Information
- Internal users include lenders, shareholders, brokers and managers.
Answer: False
Blooms: Understand
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 2 Medium
Learning Objective: 01-C2
Topic: Users of Accounting Information
- Opportunities in accounting include auditing, consulting, market research, and tax
planning.
Answer: True
Blooms: Understand
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Difficulty: 2 Medium
Learning Objective: 01-C2
Topic: Users of Accounting Information
- / 4
.png)