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Solution Manual For Fundamental Accounting Principles, 25th Edition, John Wild Chapter 1-26 A+
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Test Bank ForFundamental Accounting Principles, 25th Edition, John Wild
Chapter 1-26 Answers at the End of Each Chapter
Chapter 01:
Student name:__________
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:
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.
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.
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.
12) The accounting concept that requires every business to be accounted for separately from
other business entities, including its owner or owners is known as the:
A) Time-period assumption.
B) Business entity assumption.
C) Going-concern assumption.
D) Revenue recognition principle.
E) Measurement (Cost) principle.
13) The rule that requires financial statements to assume that the business will continue
operating instead of being closed or sold is the:
A) Going-concern assumption.
B) Business entity assumption.
C) Objectivity principle.
D) Measurement (Cost) principle.
E) Monetary unit assumption.
14) If a company is considering the purchase of a parcel of land that was originally acquired
by the seller for $100,000, is currently offered for sale at $180,000, is considered by the
purchaser as easily being worth $170,000, and is finally purchased for $167,000, the land should
be recorded in the purchaser’s books at:
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