TEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDER

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True / False 1. A merchandising business buys products from other businesses to sell to customers. 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. Accounting information users need reports about the economic activities and condition of businesses. a. True b. False ANSWER: True 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 the management. a. True b. False ANSWER: True

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