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Test Bank For Financial Accounting 17 th
Edition By Jan Williams Sue Haka et al (All Chapters, 100% Original Verified, A+ Grade) 1 / 4
1 Copyright © 2018 McGraw-Hill Financial Accounting, 17e (Williams)
Chapter 1 Accounting: Information for Decision Making
1) Managerial accounting information is designed primarily to assist investors and creditors in deciding how to allocate scarce resources.
Answer: FALSE
Difficulty: 1 Easy
Topic: Accounting Information: A Means to an End Learning Objecti: 01-01 Discuss accounting as the language of business and the role of accounting information in making economic decisions.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) All internal control systems need to be monitored.
Answer: TRUE
Difficulty: 2 Medium
Topic: Accounting Systems
Learning Objecti: 01-02 Discuss the significance of accounting systems in generating reliable accounting information and understand the five components of internal control.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) Management accounting information is oriented toward the future while financial accounting information is historical in nature.
Answer: TRUE
Difficulty: 2 Medium
Topic: Financial Accounting Information
Learning Objecti: 01-03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information.; 01-04 Explain the importance of accounting information for internal parties—primarily management—in terms of the objectives and the characteristics of that information.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation 2 / 4
2 Copyright © 2018 McGraw-Hill 4) Return on investment is the same as return of investment.
Answer: FALSE
Difficulty: 1 Easy
Topic: Financial Accounting Information
Learning Objecti: 01-03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The IRS tax return is one of the primary financial statements.
Answer: FALSE
Difficulty: 1 Easy
Topic: Financial Accounting Information
Learning Objecti: 01-03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) External users of accounting information have a financial interest in an entity but are not involved with the day-to-day operations of the enterprise.
Answer: TRUE
Difficulty: 2 Medium
Topic: Financial Accounting Information
Learning Objecti: 01-03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation 3 / 4
3 Copyright © 2018 McGraw-Hill 7) The tailoring of an accounting report to meet the needs of a specific decision maker is more characteristic of financial accounting reports than of management accounting reports.
Answer: FALSE
Difficulty: 2 Medium
Topic: Financial Accounting Information
Learning Objecti: 01-03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information.; 01-04 Explain the importance of accounting information for internal parties—primarily management—in terms of the objectives and the characteristics of that information.
Bloom's: Understand
AACSB: Analytical Thinking; Communication
Accessibility: Keyboard Navigation
8) The annual financial statements of large corporations such as Microsoft or PepsiCo need not be audited by independent certified public accountants, since these firms maintain large accounting departments as part of their organizations.
Answer: FALSE
Difficulty: 1 Easy
Topic: Financial Accounting Information
Learning Objecti: 01-03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information.
Bloom's: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
9) The statement of financial position and the income statement are one and the same.
Answer: FALSE
Difficulty: 1 Easy
Topic: Financial Accounting Information
Learning Objecti: 01-03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information.
Bloom's: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
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