Swain Test Bank All - 11e James S�ce Earl S�ce Steve Albrecht Swa...

Accoun�ng Concepts and Applica�on (Interna�onal Edi�on) 11e James S�ce Earl S�ce Steve Albrecht Swain (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1—Accounting Information: Users and Uses

MULTIPLE CHOICE

• Which of the following is NOT typically true of accounting information?
• The information is quantitative in nature.
• The information relates to future time periods.
• The information relates to specific accounting entities.
• The information is primarily financial in nature.

ANS: B PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

• Which of the following is true about the double-entry system of bookkeeping?
• It was developed in the 1300s−1400s in France.
• It was developed in the 1800s in Italy.
• It was developed in the 1300s−1400s in Italy.
• It was developed in the 1800s in the United States.

ANS: C PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

• Businesses use accounting systems to
• Analyze transactions
• Handle routine bookkeeping tasks
• Evaluate the performance and health of the business
• All of these are correct

ANS: D PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

• Which of the following is the most correct definition of accounting?
• A system for providing quantitative information, primarily financial in nature, about

economic entities that is intended to be useful in making economic decisions.

• An entity without a profit objective, oriented toward providing services efficiently and

effectively.

• The preservation of a systematic, quantitative record of an activity.
• The procedures and processes used by a company to analyze transactions and handle

routine bookkeeping tasks.

ANS: A PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

• Which of the following is NOT a function of accounting?
• Accumulating economic information about organizations
• Measuring economic information about organizations
• Executing sales transactions for organizations
• Communicating economic information about organizations

ANS: C PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

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© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

• Which of the following is NOT a key component of the definition of accounting?
• Financial
• Qualitative
• Useful
• Decision-oriented

ANS: B PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

• Which of the following is NOT a step in the decision making process?
• Identify the issue.
• Identify alternatives.
• Select the option that will result in the greatest financial increase.
• Gather information.

ANS: C PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Decision Modeling

• Accounting can be best described as a
• Manufacturing activity
• Service activity
• Retailing activity
• All of these are correct

ANS: B PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

• Which of the following is NOT a typical source of monetary resources for a business enterprise?
• Investors
• Creditors
• Business earnings
• Employees

ANS: D PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

• Accountants typically perform what action related to the financial results of business activities?
• Report the results of business activities
• Advise on how to structure business activities
• Both report the results of and advise on how to structure business activities
• None of these are correct

ANS: C PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Reporting

11. The accounting cycle includes all of the following, EXCEPT:

• Recording
• Summarizing
• Analyzing
• Interpreting

ANS: D PTS: 1 DIF: Easy OBJ: 1.1

NAT: AACSB Reflective Thinking | AICPA FN Measurement

• / 4

© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

• The emphasis in financial accounting is on which of the following external user groups?
• Management
• Certified public accountants
• Investors and creditors
• Educators

ANS: C PTS: 1 DIF: Easy OBJ: 1.2

NAT: AACSB Reflective Thinking | AICPA FN Reporting

• The primary internal group that uses accounting information is
• Government agencies
• Investors
• Management
• Competitors

ANS: C PTS: 1 DIF: Easy OBJ: 1.2

NAT: AACSB Reflective Thinking | AICPA FN Reporting

• Internal reports are generally used by
• Management
• Suppliers
• Lenders
• Employees

ANS: A PTS: 1 DIF: Easy OBJ: 1.2

NAT: AACSB Reflective Thinking | AICPA FN Reporting

• Which of the following is NOT an important aspect of management accounting?
• Planning
• Product design
• Implementing plans
• Controlling costs

ANS: B PTS: 1 DIF: Easy OBJ: 1.2

NAT: AACSB Reflective Thinking | AICPA FN Reporting

• The area of accounting that is concerned with providing information for external users is referred to as
• Financial accounting
• Governmental accounting
• Management accounting
• Not-for-profit accounting

ANS: A PTS: 1 DIF: Easy OBJ: 1.2

NAT: AACSB Reflective Thinking | AICPA FN Reporting

• Which of the following is NOT one of the three primary financial statements?
• Statement of cash flows
• Income statement
• Statement of retained earnings
• Balance sheet

ANS: C PTS: 1 DIF: Easy OBJ: 1.2

NAT: AACSB Reflective Thinking | AICPA FN Reporting

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