Test Bank to accompany Intermediate Accounting: IFRS Edition
4-1
CHAPTER 4
INCOME STATEMENT AND RELATED INFORMATION
CHAPTER LEARNING OBJECTIVES
1.
Understand the uses and limitations of an income stat
CHAPTER 9
INVENTORIES: ADDITIONAL VALUATION ISSUES
TRUE-FALSEConceptual
Answer
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CHAPTER 8
FLEXIBLE BUDGETS, OVERHEAD COSTS,
VARIANCES, AND MANAGEMENT CONTROL
TRUE/FALSE
1.
Overhead costs are a major part of costs for most companies more than 50% of
all costs for some companies.
A
CHAPTER 7
CASH AND RECEIVABLES
TRUE-FALSEConceptual
Answer
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CHAPTER 1
TRUE-FALSEConceptual
2. Financial statements are the principal means through which financial information is
communicated to those outside an enterprise.
3. The major financial statements use
CHAPTER 7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND MANAGEMENT CONTROL
TRUE/FALSE 1. The master budget is one type of flexible budget. Answer: Terms to Learn: 2. False Difficulty: flexible budget 1
CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS
TRUE/FALSE 1. Joint costs are incurred beyond the splitoff point and are assignable to individual products. Answer: False Difficulty: 2 Terms
CHAPTER 15 ALLOCATION OF SUPPORT DEPARTMENT COSTS, COMMON COSTS, AND REVENUES
TRUE/FALSE 1. The dual cost-allocation method classifies costs into two pools, a budgeted cost pool and an actual cost poo
CHAPTER 21
CAPITAL BUDGETING AND COST ANALYSIS
TRUE/FALSE
1.
Capital budgeting focuses on projects over their entire lives to consider all the cash
flows or cash savings from investing in a single pro
CHAPTER 22
MANAGEMENT CONTROL SYSTEMS, TRANSFER
PRICING, AND MULTINATIONAL
CONSIDERATIONS
TRUE/FALSE
1.
The goal of a management control system is to improve the collective decisions in
an organizatio
CHAPTER 23
PERFORMANCE MEASUREMENT,
COMPENSATION, AND MULTINATIONAL
CONSIDERATIONS
TRUE/FALSE
1.
Many common performance measures, such as customer satisfaction, rely on
internal financial accounting
CHAPTER 19
BALANCED SCORECARD: QUALITY, TIME, AND
THE THEORY OF CONSTRAINTS
TRUE/FALSE
1.
Shortening delivery times is a minor part of the quality improvement process.
Answer:
False
Difficulty: 2
Obje
CHAPTER 17
PROCESS COSTING
TRUE/FALSE
1.
Examples of industries that would use process costing include the pharmaceutical
and semiconductor industry.
Answer:
Terms to Learn:
2.
True
Difficulty:
proces
CHAPTER 13
STRATEGY, BALANCED SCORECARD, AND
STRATEGIC PROFITABILITY ANALYSIS
TRUE/FALSE
1.
Strategy describes how an organization matches its own capabilities with the
opportunities in the marketplac
CHAPTER 12
PRICING DECISIONS AND COST MANAGEMENT
TRUE/FALSE
1.
Companies must always examine pricing decisions through the eyes of their
customers.
Answer:
True
Terms to Learn: target price
2.
Difficu
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION
TRUE/FALSE 1. A decision model is a formal method for making a choice, frequently involving both quantitative and qualitative analyses. Answer: Term
CHAPTER 10
DETERMINING HOW COSTS BEHAVE
TRUE/FALSE
1.
One assumption frequently made in cost behavior estimation is that changes in total
costs can be explained by changes in the level of a single act
CHAPTER 14
COST ALLOCATION, CUSTOMER-PROFITABILITY
ANALYSIS, AND SALES-VARIANCE ANALYSIS
TRUE/FALSE
1.
Indirect costs are costs that cannot be traced to cost objects in an economically
feasible way.
A
CHAPTER 18
SPOILAGE, REWORK, AND SCRAP
TRUE/FALSE
1.
Reducing defects helps to reduce costs, but it does not make the business more
competitive.
Answer:
False
Difficulty: 2
Terms to Learn: spoilage
Re
CHAPTER 20
INVENTORY MANAGEMENT, JUST-IN-TIME, AND
SIMPLIFIED COSTING METHODS
TRUE/FALSE
1.
Retailers generally have a high percentage of net income to revenues.
Answer:
False
Difficulty: 2
Terms to L
CHAPTER 3
THE ACCOUNTING INFORMATION SYSTEM
CHAPTER LEARNING OBJECTIVES
1.
Understand basic accounting terminology.
2.
Explain double-entry rules.
3.
Identify steps in the accounting cycle.
4.
Record
CHAPTER 15
EQUITY
TRUE-FALSEConceptual
Answer
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State a corporation incorpo
CHAPTER 17
INVESTMENTS
TRUE-FALSEConceptual
Answer
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*20.
IASB requirements for
CHAPTER 16
DILUTIVE SECURITIES AND EARNINGS PER SHARE
TRUE-FALSEDilutive SecuritiesConceptual
Answer
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CHAPTER 18
REVENUE
TRUE-FALSEConceptual
Answer
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Recognition of revenue.
De
CHAPTER 20
ACCOUNTING FOR PENSIONS
AND POSTRETIREMENT BENEFITS
IFRS questions are available at the end of this chapter.
TRUE-FALSEConceptual
Answer
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CHAPTER 23
STATEMENT OF CASH FLOWS
IFRS questions are available at the end of this chapter.
TRUE-FALSEConceptual
Answer
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Description
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