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1 Financial Accounting, 12e (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, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
2) Transactions that can be measured in dollars and cents are recorded in the financial information system.
Answer: TRUE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
3) The hiring of a new company president is an economic event recorded by the financial information system.
Answer: FALSE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: C
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
4) Management of a business enterprise is the major external user of information.
Answer: FALSE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
Financial Accounting 12e Jerry Weygandt, Paul Kimmel, Donald Kieso (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4
2 5) Accounting communicates financial information about a business enterprise to both internal and external users.
Answer: TRUE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
6) Accounting information is used only by external users with financial interests in a business enterprise.
Answer: FALSE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: C
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
7) Financial statements are the primary means of communicating accounting information to interested parties.
Answer: TRUE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
8) Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.
Answer: FALSE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: C
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
9) The origins of accounting are attributed to Luca Pacioli, a famous mathematician.
Answer: TRUE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5 2 / 4
3 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, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
11) A working knowledge of accounting is not relevant to a lawyer or an architect.
Answer: FALSE
Diff: 1
LO: 1, Section 1
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
12) A partnership must have more than one owner.
Answer: TRUE
Diff: 1
LO: 2, Section 2
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
13) 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, Section 2
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
14) The monetary unit assumption states that only transactions that can be measured in terms of money should be recorded in the accounting records.
Answer: TRUE
Diff: 1
LO: 2, Section 2
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
- / 4
4 15) Accountants rely on a fundamental business concept–ethical behavior–in reporting financial information.
Answer: TRUE
Diff: 1
LO: 2, Section 2
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
16) The primary accounting standard-setting body in the United States is the International Accounting Standards Board.
Answer: FALSE
Diff: 1
LO: 2, Section 2
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
17) The Financial Accounting Standards Board is a part of the Securities and Exchange Commission.
Answer: FALSE
Diff: 1
LO: 2, Section 2
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
18) The Securities and Exchange Commission oversees U.S. financial markets and accounting standard-setting bodies.
Answer: TRUE
Diff: 1
LO: 2, Section 2
Bloom / IFRS: K
AACSB / IMA: Reflective Thinking
AICPA: BB: Critical Thinking; FN: Reporting
Min: 0.5
- / 4
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