ACCOUNTING 26TH EDITION BY WARREN -TEST BANK

1. A corporation is a business that is legally separate and distinct from its owners.

a.  True

b.  False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:         ACCT.WARD.16.01-01 - 01-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.03 - Business Forms

ACCT.AICPA.BB.01 - Industry

ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic

2. The role of accounting is to provide many different users with financial information to make economic decisions.

a.  True

b.  False

ANSWER:                                  True

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:         ACCT.WARD.16.01-01 - 01-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.01 - Purpose

ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic

3. Accounting information users need reports about the economic activities and condition of businesses.

a.  True

b.  False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:         ACCT.WARD.16.01-01 - 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

b.  False

ANSWER:                                  False

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:         ACCT.WARD.16.01-01 - 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 wrong doings they commit on behalf of the companies where they work.

a.  True

b.  False

ANSWER:                                  False

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:         ACCT.WARD.16.01-01 - 01-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.01 - Purpose

ACCT.AICPA.BB.03 - Legal

ACCT.AICPA.FN.03 - Measurement BUSPROG: Ethics

6.Financial accounting provides information to all users, while the main focus for managerial accounting is to provide information to the management.

a.  True

b.  False

ANSWER:                                  True