Chapter 01 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Chapter 01 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

 

Complete Chapter Questions With Answers

 

Sample Questions Are Posted Below

 

1. A corporation is a business that is legally separate and distinct from its owners.
   1. True
   2. 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.
   1. True
   2. 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.
   1. True
   2. 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.
   1. True
   2. 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.
   1. True
   2. 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.
   1. True
   2. 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