Test Bank For Accounting 29th Edition by Carl Warren

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

  a.  True

  b.  False

ANSWER:   True

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

  a.  True

  b.  False

ANSWER:   True

3. Investing activities are those activities by which the company obtains funds to start and operate the business.

  a.  True

  b.  False

ANSWER:   False

4. Managerial accounting information is used by external and internal users equally.

  a.  True

  b.  False

ANSWER:   False

5. Senior executives cannot be criminally prosecuted for the wrongdoings they commit on behalf of the companies where they work.

  a.  True

  b.  False

ANSWER:   False

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

  a.  True

  b.  False

ANSWER:   True

7. Proper ethical conduct implies that you only consider what’s in your best interest.

  a.  True

  b.  False

ANSWER:   False

8. Some major fraudulent acts committed by senior executives started as what they considered to be small ethical lapses that grew out of control.

  a.  True

  b.  False

ANSWER:   True

9. A business is an organization in which basic resources or inputs, like materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers.

  a.  True

  b.  False

ANSWER:   True

10. Operating activities are those activities by which a company generates revenues from customers.

  a.  True

  b.  False

ANSWER:   True