Lianne Smith-Stow - Volume 1 Charles T. Horngren / Walter T. Harris...

TEST BANK

Glen Stanger Lianne Smith-Stow

ACCOUNTING

Ninth Canadian Edition Volume 1 Charles T. Horngren / Walter T. Harrison / Jo-Ann L. Johnston Carol A. Meissner / Peter R. Norwood 1 / 4

Accounting Volume One, Ninth Canadian Edition Horngren, Harrison, Johnston, Meissner, Norwood Copyright © 2014 Pearson Canada Inc.Table of Contents Chapter 1: Accounting and the Business Environment ...................................................................1 Chapter 2: Recording Business Transactions ................................................................................16 Chapter 3: Measuring Business Income: The Adjusting Process ..................................................29 Chapter 4: Completing the Accounting Cycle ...............................................................................44 Chapter 5: Merchandising Operations and the Accounting Cycle .................................................59 Chapter 6: Accounting for Merchandise Inventory ......................................................................82 Chapter 7: Accounting Information Systems .................................................................................97 Chapter 8: Internal Control and Cash ..........................................................................................132 Chapter 9: Receivables ................................................................................................................148 Chapter 10: Property, Plant, and Equipment; Goodwill; and Intangibles....................................163 Chapter 11: Current Liabilities and Payroll .................................................................................180 2 / 4

1 © 2014 Pearson Canada Inc.Accounting, Vol. 1, 9e Cdn. Ed. (Horngren et al.) Chapter 1 Accounting and the Business Environment Objective 1-1 1) Financial statements provide information about business activities to decision makers.

Answer: TRUE

Diff: 1

Learning Outcome: A-02 Describe the components of and prepare the four basic financial statements

Skill: Knowledge

Objective: 1-1 Define accounting, and describe the users of accounting information 2) Investors provide money to a business to begin operations.

Answer: TRUE

Diff: 2

Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual Framework

Skill: Knowledge

Objective: 1-1 Define accounting, and describe the users of accounting information 3) Not-for-profit organizations need accounting information, as do profit-oriented organizations.

Answer: TRUE

Diff: 1

Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual Framework

Skill: Knowledge

Objective: 1-1 Define accounting, and describe the users of accounting information 4) The designation CA stands for Certified Public Accountant.

Answer: FALSE

Diff: 1

Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual Framework

Skill: Knowledge

Objective: 1-1 Define accounting, and describe the users of accounting information 3 / 4

2 © 2014 Pearson Canada Inc.5) Which of the following users of accounting information seek to assess the organization's ability to make scheduled payments?

• creditors
• taxing authorities
• government regulatory agencies
• employees

Answer: A

Diff: 2

Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual Framework

Skill: Knowledge

Objective: 1-1 Define accounting, and describe the users of accounting information

6) The primary objective of financial reporting is to provide information:

• to the federal government.
• about the profitability of the business.
• regarding the cash flows of the business.
• useful for making investment decisions and for assessing management's stewardship.

Answer: D

Diff: 3

Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual Framework

Skill: Knowledge

Objective: 1-1 Define accounting, and describe the users of accounting information

7) Which of the following statements best describes managerial accounting?

• Managerial accounting focuses on information for internal decision making.
• Managerial accounting focuses on outside investors and lenders.
• Managerial accounting provides information for the public.
• Managerial accounting provides information for taxing authorities.

Answer: A

Diff: 1

Learning Outcome: A-01 Identify and apply accounting concepts and principles found in the Conceptual Framework

Skill: Knowledge

Objective: 1-1 Define accounting, and describe the users of accounting information

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