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v
Using this test bank and its features
In addition to providing a variety of questions related to each chapter objective in the book, this
test bank also employs a series of tags that can help design effective, balanced tests and measure
course outcomes. All of these tags are included with the question in the test bank, and the chapter
objective and difficulty level are also included in a grid at the start of each chapter.
Chapter Objectives and Difficulty
Each question in the test bank is tied to one or more text book objectives using the “Text
Objective” field in Examview (OBJ: in the printed bank). In addition, each question has been
assigned a difficulty level, based on the following taxonomy. These appear in the “Difficulty”
field in Examview (DIF: in the printed bank).
Easy: Knowledge and Recall – Approx. 1 min per question. These types of questions are
taken directly out of the text, or cover a very basic concept without requiring any
reflective, or critical thinking, or significant analytical processes. Often these questions
are conceptual in nature which require recall but do not involve mathematical
Most questions should require an average 2 minutes a question, theory only, and then add 5
minutes for a range. For instance if there are 15 m/c questions they should require about 30 - 35
minutes. Additional time may be required for questions requiring computations.
An example of this process is identified from Chapter 3:
The cost of borrowing money is known as?
This type of question requires an understanding at the “recall” level. “Easy”.
Accrued revenues result when…..
There were 4 transactions for the student to choose between. This level of question requires an
understanding at the “analysis” level. “Moderate”.
vi ♦ Using this Test Bank and Its Features
Example 1. Johnson Company had Sales of $150,000 and Cost of Goods Sold was $90,000.
Gross Margin would be;
a. 240,000
b. 150,000
c. 90,000
d. 60,000
The answer $60,000 requires just a definitional level of knowledge and would be at the
knowledge & recall level of understanding.
Example 2. Johnson Company had sales of $150,000 with a cost of goods sold of 60%. The
Consistency in the approach to assigning objectives and level of difficulty is of utmost importance.
Most multiple choice questions are tied to only one objective. Some of these questions may
require knowledge from other objectives in the same chapter or knowledge from previous
chapters. The objectives have been chosen based on the most predominant objective(s) being
tested. The problems and essay questions often have multiple objectives associated with them.
Often, the questions with multiple objectives require a higher level of analysis or critical thinking.
Course Outcomes
In addition to chapter objective and difficulty, this test bank is tagged to outcomes created by two
bodies that provide curriculum guidance for this course: The Association to Advance Collegiate
Schools of Business (AACSB) and The American Institute of Certified Public Accountants
(AICPA). These are included in the test bank as follows: AACSB in the “Miscellaneous” field in
Examview (MSC: in the printed bank.) and AICPA in the “Topic” field in Examview (TOP in the
printed bank).
Using this Test Bank and Its Features ♦ vii
AACSB: Derived from the AACSB website “The Assurance of Learning Standards. 15. Management of
Curricula”
Tags
Skills
AACSB Communication
• Communication abilities.
AACSB Ethics
• Ethical understanding and reasoning abilities.
AACSB Analytic
• Analytic skills.
Multiple-Choice: Computational are mostly AACSB Analytic; other topics fall under
AACSB Reflective Thinking.
Problems: Primarily AACSB Analytic, and, if there is a written component or other
explanation, the AACSB Communication tag is used.
Essays: Mostly either AACSB Reflective Thinking or AACSB Communication. If there is a
comparison type of question then it falls under AACSB Analytic.
AICPA: Derived from the AICPA website.
Copyright © 2005 by the American Institute of Certified Public Accountants, Inc. Reprinted with
permission.
Tags
Skills
Functional Competencies
AICPA FN-
Decision
Modeling
Individuals preparing to enter the accounting profession must be able to use strategic and critical
approaches to decision-making. They must objectively consider issues, identify alternatives, and
choose and implement solution approaches in order to deliver services and provide value.
AICPA FN-
Leveraging
Technology
Technology is pervasive in the accounting profession. Individuals entering the accounting
profession must acquire the necessary skills to use technology tools effectively and efficiently.
These technology tools can be used both to develop and apply other functional competencies.
AICPA FN-
Research
Although accounting professionals need a foundation in standards and other relevant rules, such
guidance is constantly evolving. Many accounting profession functions depend on obtaining
information from within and outside of an entity. Accordingly, the individual preparing to enter
the accounting profession needs to have strong research skills to access relevant guidance or other
viii ♦ Using this Test Bank and Its Features
AICPA BB-
Industry
Individuals entering the accounting profession should be able to identify (through research and
analysis) the economics and broad business financial risks and opportunities of the industry and
economic sector in which a given organization operates. Identification of these risks and
opportunities should include both issues specific to the enterprise, as well as those pervasive
throughout the industry/sector.
AICPA BB-
Global
Individuals entering the accounting profession should be able to identify and communicate the
variety of threats and opportunities of doing business in a borderless world. The accounting
professional of the future must provide services to support and facilitate commerce in the global
AICPA-BB-
Marketing
Individuals who are marketing- and client- focused are better able to anticipate and meet the
changing needs of clients, employers, customers, and markets. This involves both the ability to
recognize market needs and the ability to develop new markets.
AICPA BB-
Resource
Management
The ability to appreciate the importance of all resources is critical for success. Individuals
entering the accounting profession should be able to apply management and human resources
development theories to human resource issues and organizational problems. Individuals
preparing to enter the accounting profession should be able to identify sources of capital, and
analyze the impact of participation in the global capital markets.
Note: The AICPA also includes Personal competencies not covered in this course.
This text is considered a beginning text for introducing students to basic accounting concepts,
decision-making processes and financial statement analysis. As such, the test bank questions are
learning objective tags have been assigned with this in mind.
For AACSB evaluation purposes, the vast majority of the Multiple Choice and Problem test bank
questions are analytical in nature. Many essay questions are tied to communication skills and
ethics issues.
