Test Bank for Financial & Managerial Accounting, 16th Edition Warren (All Chapters included)
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Course
Managerial Accounting & Legal Aspects of Business
Institution
Managerial Accounting & Legal Aspects Of Business
Complete Test Bank for Financial & Managerial Accounting, 16th Edition by Carl Warren, Jefferson Jones, William B. Tayler ; ISBN13: 9780357714041. (Full Chapters included Chapter 1 to 28)...
1. Introduction to Accounting and Business.
2. Analyzing Transactions.
3. The Adjusting Process.
4. The ...
Financial & Managerial Accounting
16th Edition
by Carl Warren
Complete Chapters Test Bank are
included (Ch 1 to 28)
** Immediate Download
** Swift Response
** All Chapters included
,Name: Class: Date:
Chap 01_16e
Indicate whether the statement is true or false.
1. If the liabilities owed by a business total $300,000 and stockholders' equity is equal to $300,000, then the assets
also total $300,000.
a. True
b. False
2. The role of accounting is to provide many different users with financial information to make economic decisions.
a. True
b. False
3. The primary financial statements of a corporation are the income statement, the statement of stockholders’
equity, and the balance sheet.
a. True
b. False
4. If net income for a company was $50,000, $20,000 in cash dividends were paid, and the shareholders invested
$10,000 in cash, the stockholders' equity increased by $40,000.
a. True
b. False
5. The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of
stockholders.
a. True
b. False
6. Receiving a bill or otherwise being notified that an amount is owed is not recorded until the amount is paid.
a. True
b. False
7. Proper ethical conduct implies that you only consider what's in your best interest.
a. True
b. False
8. The accounting equation can be expressed as Assets – Liabilities = Stockholders' Equity.
a. True
b. False
9. The main objective for all businesses is to maximize unrealized profits.
a. True
b. False
10. Revenue is earned only when money is received.
a. True
b. False
Page 1
, Name: Class: Date:
Chap 01_16e
11. No significant differences exist between the accounting standards issued by the FASB and the IASB.
a. True
b. False
12. The Financial Accounting Standards Board (FASB) is the authoritative body that has primary responsibility for
developing accounting principles.
a. True
b. False
13. If total assets increased by $190,000 during a specific period and liabilities decreased by $10,000 during the
same period, the period's change in total stockholders' equity was a $200,000 increase.
a. True
b. False
14. Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies
where they work.
a. True
b. False
15. Generally accepted accounting principles regulate how and what financial information is reported by businesses.
a. True
b. False
16. An income statement is a summary of the revenues and expenses of a business as of a specific date.
a. True
b. False
17. An example of an external user of accounting information is the federal government.
a. True
b. False
18. Purchasing supplies on account increases liabilities and decreases equity.
a. True
b. False
19. The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.
a. True
b. False
20. Receiving payments on an account receivable increases both equity and assets.
a. True
b. False
21. An account receivable is typically classified as a revenue.
a. True
b. False
Page 2
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