Solutions and Test Bank For Fundamental Accounting Principles, Volume 1, 17th Edition By Kermit Larson
Solutions and Test Bank for Fundamental
Accounting Principles, Volume 1, 17th Edition by
Kermit Larson
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Accounting is an information system that identifies, measures, records and communicates
relevant information that objectively and correctly represents an organization's economic
activities.
⊚ true
⊚ false
2) Accounting information helps people make better decisions about the performance of a
business.
⊚ true
⊚ false
3) The main objective of accounting is to help people to invest in new products and
businesses.
⊚ true
⊚ false
4) Recordkeeping" is another term for "accounting".
⊚ true
⊚ false
,Solutions and Test Bank For Fundamental Accounting Principles, Volume 1, 17th Edition By Kermit Larson
5) A sole proprietorship is a business owned by one or more persons.
⊚ true
⊚ false
6) A partnership requires no special legal requirements to start, other than to register the
business name and obtain a business license.
⊚ true
⊚ false
7) Ownership of a corporation is divided into units called shares.
⊚ true
⊚ false
8) In the partnership form of business, the owners of a business are called shareholders.
⊚ true
⊚ false
9) Unlimited liability is an advantage for both a proprietorship and a partnership.
⊚ true
⊚ false
,Solutions and Test Bank For Fundamental Accounting Principles, Volume 1, 17th Edition By Kermit Larson
10) Although a proprietorship is not a separate legal entity, a partnership is.
⊚ true
⊚ false
11) A corporation is responsible for its actions and any debts incurred. It can enter into its
own contracts, and it can buy, own, and sell property.
⊚ true
⊚ false
12) Non-business organizations often operate educational and religious services for profit.
⊚ true
⊚ false
13) Sole proprietorships and partnerships are not subject to income tax in Canada.
⊚ true
⊚ false
14) External users include lenders such as banks, and other creditors such as suppliers and
bondholders.
⊚ true
⊚ false
15) Internal users include creditors, shareholders, internal auditors, and managers.
, Solutions and Test Bank For Fundamental Accounting Principles, Volume 1, 17th Edition By Kermit Larson
⊚ true
⊚ false
16) Managerial accounting provides special-purpose reports customized to meet the
information needs of internal users.
⊚ true
⊚ false
17) Internal operating functions include research and development, distribution, and human
resources.
⊚ true
⊚ false
18) Internal controls include procedures to protect assets and prevent fraud.
⊚ true
⊚ false
18.1) Career opportunities in accounting include auditing, forensic accounting, and tax
planning.
⊚ true
⊚ false
19) Budgeting is the process of developing formal plans for an organization's future
activities.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BrainyBazaar. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
