Test Bank For Financial Accounting 15th Edition Carl Warren James

True / False

1. A merchandising business buys products from other businesses to sell to customers.

  a.  True

  b.  False

ANSWER:   True

DIFFICULTY:   Easy
Bloom’s: Remembering

LEARNING OBJECTIVES:   ACCT.WARD.18.01-01 – 01-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.03 – Business Forms
ACCT.AICPA.BB.01 – Industry
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic

2. The role of accounting is to provide many different users with financial information to make economic decisions.

  a.  True

  b.  False

ANSWER:   True

DIFFICULTY:   Moderate
Bloom’s: Remembering

LEARNING OBJECTIVES:   ACCT.WARD.18.01-01 – 01-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.01 – Purpose
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic

3. Accounting information users need reports about the economic activities and condition of businesses.

  a.  True

  b.  False

ANSWER:   True

DIFFICULTY:   Easy
Bloom’s: Remembering

LEARNING OBJECTIVES:   ACCT.WARD.18.01-01 – 01-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.01 – Purpose
ACCT.AICPA.BB.01 – Industry
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic

4. Managerial accounting information is used by external and internal users equally.

  a.  True

  b.  False

ANSWER:   False

DIFFICULTY:   Easy
Bloom’s: Remembering

LEARNING OBJECTIVES:   ACCT.WARD.18.01-01 – 01-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.01 – Purpose
ACCT.ACBSP.APC.25 – Managerial Characteristics/Terminology
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic

5. Senior executives cannot be criminally prosecuted for the wrongdoings they commit on behalf of the companies where they work.

  a.  True

  b.  False

ANSWER:   False

DIFFICULTY:   Easy
Bloom’s: Understanding

LEARNING OBJECTIVES:   ACCT.WARD.18.01-01 – 01-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.01 – Purpose
ACCT.AICPA.BB.03 – Legal
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Ethics