Test Bank For Financial Accounting An Introduction to Concepts Methods and Uses 14th Edition
Chapter 1: Introduction to Business Activities and Overview of Financial Statements and the Reporting Process
TRUE/FALSE
- The activities of a business include establishing goals and strategies, obtaining financing, making investments, and conducting operations.
ANS: T PTS: 1 DIF: 1 REF: pp. 3-6
OBJ: LO: 1-01 NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | ACBSP: APC-09-Financial Statements
KEY: Bloom’s: Knowledge
- Goals are the end results toward which the firm directs its energies, and strategies are the
means for achieving those results.
ANS: T PTS: 1 DIF: 1 REF: pp. 3-6
OBJ: LO: 1-01 NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | ACBSP: APC-09-Financial Statements
KEY: Bloom’s: Knowledge
- Each firm makes financing decisions about the proportion of funds to obtain from owners,
long-term creditors, and short-term creditors.
ANS: T PTS: 1 DIF: 1 REF: pp. 3-6
OBJ: LO: 1-01 NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | ACBSP: APC-09-Financial Statements
KEY: Bloom’s: Knowledge
- A firm makes investments to obtain productive capacity to carry out its business activities.
ANS: T PTS: 1 DIF: 1 REF: pp. 3-6
OBJ: LO: 1-01 NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | ACBSP: APC-09-Financial Statements
KEY: Bloom’s: Knowledge
- Patents, licenses, and other contractual rights are tangible, in the sense that the rights have a physical existence.
ANS: F PTS: 1 DIF: 1 REF: pp. 3-6
OBJ: LO: 1-01 NAT: BUSPROG: Analytic
STA: AICPA: FN-Reporting | ACBSP: APC-09-Financial Statements
KEY: Bloom’s: Knowledge
