Test Bank For Fundamental Accounting Principles Volume 1 u u u u
17th Edition by Larson u u u u
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Accounting is an information system that identifies, measures, records and communicates
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relevant information that objectively and correctly represents an organization's economic
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uactivities.
⊚ true
⊚ false
Question Details
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Accessibility : Keyboard Navigation
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Learning Objective : 01-01 Describe the purpose and importance of
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accounting.Topic : 01-02 Power of Accounting
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Bloom's : Remember
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Difficulty : Easy
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2) Accounting information helps people make better decisions about the performance of a
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business.
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⊚ true
⊚ false
Question Details
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Accessibility : Keyboard Navigation
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Learning Objective : 01-01 Describe the purpose and importance of
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accounting.Topic : 01-02 Power of Accounting
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Bloom's : Remember
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Difficulty : Easy
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3) The main objective of accounting is to help people to invest in new products and
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businesses.
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⊚ true
⊚ false
Question Details
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Accessibility : Keyboard Navigation
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Learning Objective : 01-01 Describe the purpose and importance of
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accounting.Bloom's : Remember
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Difficulty : Easy
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Version 1
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Topic : 01-07 External Information Users
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4) Recordkeeping" is another term for "accounting". u u u u u
⊚ true
⊚ false
Question Detailsu
Accessibility : Keyboard Navigation
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Learning Objective : 01-01 Describe the purpose and importance of
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accounting.Bloom's : Remember
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Difficulty : Easy
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Topic : 01-03 Focus of Accounting
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5) A sole proprietorship is a business owned by one or more persons.
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⊚ true
⊚ false
Question Detailsu
Accessibility : Keyboard Navigation
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Bloom's : Remember
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Difficulty : Easy
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Learning Objective : 01-02 Describe forms of business
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organization.Topic : 01-05 Business Organizations
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6) A partnership requires no special legal requirements to start, other than to register the
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business name and obtain a business license.
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⊚ true
⊚ false
Question Detailsu
Accessibility : Keyboard Navigation
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Bloom's : Remember
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Difficulty : Easy
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Learning Objective : 01-02 Describe forms of business
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organization.Topic : 01-05 Business Organizations
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7) Ownership of a corporation is divided into units called shares.
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⊚ true
⊚ false
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Question Details
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Accessibility : Keyboard Navigation
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Bloom's : Remember
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Difficulty : Easy
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Learning Objective : 01-02 Describe forms of business
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organization.Topic : 01-05 Business Organizations
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8) In the partnership form of business, the owners of a business are called shareholders.
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⊚ true
⊚ false
Question Details
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Accessibility : Keyboard Navigation
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Bloom's : Remember
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Difficulty : Easy
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Learning Objective : 01-02 Describe forms of business
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organization.Topic : 01-05 Business Organizations
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9) Unlimited liability is an advantage for both a proprietorship and a partnership.
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⊚ true
⊚ false
Question Details
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Accessibility : Keyboard Navigation
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Bloom's : Remember
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Learning Objective : 01-02 Describe forms of business
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organization.Topic : 01-05 Business Organizations
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Difficulty : Medium
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10) Although a proprietorship is not a separate legal entity, a partnership is.
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⊚ true
⊚ false
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