F. Sony G. Best Buy H. Banana Republic I. H&R Block Merchandising ANSWER: B. Service C. Manufacturing D. Service E. Service/Manufacturing F. Manufacturing G. Merchandising H. Merchandising I. Service Moderate DIFFICULTY: Bloom's: Remembering FNMN.WARD.16.01-01 - LO: 01-01 LEARNING OBJECTIVES: ACCT.ACBSP.APC.03 - Business Forms ACCREDITING STANDARDS: ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic What is the major difference between the objective of financial accounting and the objective of managerial accounting? The objective of financial accounting is to provide information for the decision- ANSWER: making needs of external users. The objective of managerial accounting is to provide information for internal users. Easy DIFFICULTY: Bloom's: Remembering FNMN.WARD.16.01-01 - LO: 01-01 LEARNING OBJECTIVES: ACCT.ACBSP.APC.01 Purpose ACCREDITING STANDARDS: – ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions. Accounting reports would become unstable and unreliable. ANSWER: Moderate DIFFICULTY: Bloom's: Remembering FNMN.WARD.16.01-02 - LO: 01-02 LEARNING OBJECTIVES: ACCT.ACBSP.APC.02 GAAP ACCREDITING STANDARDS: – ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic On May 7, Carpet Barn Company offered to pay $83,000 for land that had a selling price of $105,000. On May 15, Carpet Barn accepted a counteroffer of $95,000. On June 5, the land was assessed at a value of $115,000 for property tax purposes. On December 10, Carpet Barn Company was offered $135,000 for the land by another company. At what value should the land be recorded in Carpet Barn records? Company’s $95,000 ANSWER: Easy DIFFICULTY: Bloom's: Applying
F. Sony G. Best Buy H. Banana Republic I. H&R Block ANSWER: Merchandising B. Service C. Manufacturing D. Service E. Service/Manufacturing F. Manufacturing G. Merchandising H. Merchandising I. Service DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.01-01 - LO: 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic What is the major difference between the objective of financial accounting and the objective of managerial accounting? ANSWER: The objective of financial accounting is to provide information for the decision- making needs of external users. The objective of managerial accounting is to provide information for internal users. DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.01-01 - LO: 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 – Purpose ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions. ANSWER: Accounting reports would become unstable and unreliable. DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.01-02 - LO: 01-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 – GAAP ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic On May 7, Carpet Barn Company offered to pay $83,000 for land that had a selling price of $105,000. On May 15, Carpet Barn accepted a counteroffer of $95,000. On June 5, the land was assessed at a value of $115,000 for property tax purposes. On December 10, Carpet Barn Company was offered $135,000 for the land by another company. At what value should the land be recorded in Carpet Barn Company’s records? ANSWER: $95,000 DIFFICULTY: Easy Bloom's: Applying
FinMan_Chapter_01_Introduction_to_Accounting_and_Business.docx