Chapter 01 – Accounting and Business
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Page 1
1. A corporation is a business that is legally separate and distinct from its owners.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–01 – LO: 01–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.03 – Business Forms
ACCT.AICPA.BB.01 – Industry
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
2. The role of accounting is to provide many different users with financial information to make economic decisions.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–01 – LO: 01–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 – Purpose
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
3. Accounting information users need reports about the economic activities and condition of businesses.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–01 – LO: 01–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 – Purpose
ACCT.AICPA.BB.01 – Industry
ACCT.AICPA.FN.03 – Measurement
Chapter 01 – Accounting and Business
Copyright Cengage Learning. Powered by Cognero.
Page 4
to provide outputs in the form of goods or services to customers.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–01 – LO: 01–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.03 – Business Forms
ACCT.AICPA.BB.01 – Industry
ACCT.AICPA.BB.06 – Resource Management
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
10. Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–01 – LO: 01–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.AICPA.BB.01 – Industry
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
11. An example of a general-purpose financial statement would be a report about projected price increases related to
transportation costs.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–01 – LO: 01–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
Copyright Cengage Learning. Powered by Cognero.
Page 7
17. About 90% of the businesses in the United States are organized as corporations.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–02 – LO: 01–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.03 – Business Forms
ACCT.AICPA.BB.01 – Industry
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
18. An example of an external user of accounting information is the federal government.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–02 – LO: 01–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 – Purpose
ACCT.AICPA.BB.01 – Industry
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
19. The Financial Accounting Standards Board (FASB) is the authoritative body that has primary responsibility for
developing accounting principles.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.01–02 – LO: 01–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
