Test Bank For College Accounting Chapters 127 22e James A Heintz Robert W Parry

. The purpose of accounting is to provide financial information about the current operations and financial conditions of a
business to individuals and organizations.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.01 – LO 1-1
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom’s: Remembering
NOTES: 1 min.
2. Since financial information is communicated in accounting terms, accounting is said to be the “language of business.”
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.01 – LO 1-1
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom’s: Remembering
NOTES: 1 min.
3. Interpreting refers to reviewing events that have taken place and determining how they affect a business.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.02 – LO 1-2
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-01-Purpose
KEYWORDS: Bloom’s: Remembering
NOTES: 1 min.
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Chapter 1—Introduction to Accounting
4. A partnership is owned by stockholders or shareholders and is managed by them.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.04 – LO 1-4
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Analytic
TOPICS: ACBSP: APC-03-Business Forms
KEYWORDS: Bloom’s: Understanding
NOTES: 1 min