Test Bank For Financial Accounting 15th Edition by Warren. 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. ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Fo...
Test Bank for Financial Accounting 15th Edition by Warren
True / False
1. A merchandising business buys products from other businesses to sell to customers.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Nu
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
rs
BUSPROG: Analytic
2. The role of accounting is to provide many different users with financial information to make economic
decisions.
+
eJ
a. True
b. False
A
ANSWER: True
DIFFICULTY: Moderate
Bloom's: Remembering
AW
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
AN
3. Accounting information users need reports about the economic activities and condition of businesses.
a. True
b. False
ANSWER: True
I
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
Page 1
, 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.
Nu
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom's: Understanding
rs
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
eJ
A
6. Financial accounting provides information to all users, while the main focus for managerial accounting
is to provide information to the management.
a. True
AW
b. False
ANSWER: True
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
AN
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
I
7. Proper ethical conduct implies that you only consider what's in your best interest.
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.02 - GAAP
ACCT.AICPA.BB.03 - Legal
Page 2
, ACCT.AICPA.FN.03 - Measurement
BUSPROG: Ethics
Nu
rs
+
eJ
A
AW
AN
I
Page 3
, 8. Some of the major fraudulent acts committed by senior executives started as what they considered to be
small ethical lapses that grew out of control.
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.02 - GAAP
ACCT.AICPA.BB.03 - Legal
ACCT.AICPA.FN.03 - Measurement
Nu
BUSPROG: Ethics
9. A business is an organization in which basic resources or inputs, such as materials and labor, are
assembled and processed to provide outputs in the form of goods or services to customers.
a. True
rs
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom's: Remembering
+
eJ
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms
A
ACCT.AICPA.BB.01 - Industry
ACCT.AICPA.BB.06 - Resource Management
BUSPROG: Analytic
AW
10. Two factors that typically lead to ethical violations are relevance and timeliness of accounting
information.
a. True
AN
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: ACCT.WARD.18.01-01 - 01-01
I
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.AICPA.BB.01 - Industry
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
11. Financial accounting reports are relevant only to users within the business.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Page 4
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