Chapter 01 – Accounting and Business
Matching
False
FNMN.WAJO.19.01–02 – LO: 01–02
ANSWER:
a
POINTS:
1
133. Generates 90% of business revenues
ANSWER:
c
POINTS:
1
ANSWER:
b
POINTS:
1
135. Organized as a separate legal taxable entity
ANSWER:
c
POINTS:
1
ANSWER:
a
ANSWER:
b
POINTS:
1
130. A men’s clothing store
ANSWER:
c
POINTS:
1
131. A dressmaking company
ANSWER:
b
POINTS:
1
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Page 53
144. Paid part of an amount owed to a creditor
ANSWER:
e
POINTS:
1
145. Paid cash for the purchase of supplies
ANSWER:
d
POINTS:
1
146. Received payment from a customer on account
ANSWER:
d
POINTS:
1
147. Payment of dividends
ANSWER:
f
POINTS:
1
148. Provided a service to a customer on account
ANSWER:
c
POINTS:
1
149. Purchased supplies on credit
ANSWER:
a
POINTS:
1
150. Paid wages
ANSWER:
f
POINTS:
1
151. Payment for common stock by stockholder
ANSWER:
c
POINTS:
1
152. Borrowed money from a bank
ANSWER:
a
POINTS:
1
153. Purchased equipment for cash
ANSWER:
d
POINTS:
1
154. Received cash for providing services to customers
ANSWER:
c
POINTS:
1
155. Used up supplies that were already on hand
ANSWER:
f
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Page 56
165. List the five steps in the process by which accounting provides information to users.
ANSWER:
1. Identify users.
2. Assess users’ information needs.
3. Design the accounting information system to meet users’ needs.
4. Record economic data about business activities and events.
5. Prepare accounting reports for users.
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Subjective Short Answer
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
BUSPROG: Analytic
DATE CREATED:
7/26/2017 4:27 PM
DATE MODIFIED:
10/16/2017 3:33 PM
166. Identify each of the following as either internal or external users of accounting information.
A.
Payroll manager
B.
Bank
C.
President’s secretary
D.
Internal Revenue Service
E.
Raw material vendors
F.
Social Security Administration
G.
Health insurance provider
H.
Managerial accountant
ANSWER:
A.
Internal
B.
External
C.
Internal
D.
External
E.
External
F.
External
G.
External
H.
Internal
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Subjective Short Answer
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
