TEST BANK FOR Fundamental Accounting
Principles, 25th Edition, John Wild Chapter 1-26
Answers at the End of Each Chapter A+
Chapter 01:
1) Which of the following is not accomplished by accounting?
A) Identifies business activities.
B) Records business activities.
C) Communicates business activities.
D) Eliminates the need for interpreting financial data.
E) Helps people make better decisions.
2) Which of the following is an external user of accounting information?
A) Purchasing manager.
B) Human resource manager.
C) Lender.
D) Chief executive officer (CEO).
E) Marketing manager.
3) The primary objective of financial accounting is to:
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A) Serve the decision-making needs of internal users.
B) Provide accounting information that serves external users.
C) Monitor consumer needs, tastes, and price concerns.
D) Provide information on both the costs and benefits of looking after products and services.
E) Know what, when, and how much product to produce.
4) The area of accounting aimed at serving the decision-making needs of internal users is:
A) Financial accounting.
B) Managerial accounting.
C) External auditing.
D) SEC reporting.
E) Bookkeeping.
5) Which of the following is not an external user of accounting information?
A) Shareholders.
B) Customers.
C) Purchasing managers.
D) Government regulators.
E) Creditors.
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6) Which of the following is not true regarding a Certified Public Accountant?
A) Must meet education requirements.
B) Must pass an examination.
C) Must exhibit ethical character.
D) Must meet experience requirements.
E) Cannot hold any certificate other than a CPA.
7) Which of the following factors is not a component of the fraud triangle?
A) Opportunity
B) Pressure
C) Rationalization
D) All of the above are components of the fraud triangle.
8) Which of the following is not true regarding ethics:
A) Ethics are beliefs that separate right from wrong.
B) Good ethics are good business.
C) Ethics do not affect the operations or outcome of a company.
D) Accountants face ethical choices as they prepare financial reports.
E) Ethics are accepted standards of good and bad behavior.
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9) A corporation is:
A) A business legally separate from its owners.
B) Controlled by the FASB.
C) Not responsible for its own acts and own debts.
D) The same as a limited liability partnership.
E) Not subject to double taxation.
10) The group that sets international preferred accounting practices is called the:
A) AICPA.
B) IASB.
C) CAP.
D) SEC.
E) FASB.
11) The Securities and Exchange Commission (SEC) has given the task of setting GAAP to
the:
A) APB.
B) FASB.
C) AAA.
D) AICPA.
E) IASB.
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