TEST BANK for McGraw-Hill Financial Accounting 6th Edition By Spiceland, Thomas and Herrmann, Verified Chapters 1 to 12, Complete Version

TEST BANK
Financial Accounting, 6th Edition
Chapters 1 – 12 Complete
By David Spiceland, Wayne Thomas And Don
Herrmann

,TABLE OF CONTENTS
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Chapter 1: A Framework for Financial Accounting
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Chapter 2: The Accounting Cycle: During the Period
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Chapter 3: The Accounting Cycle: End of the Period
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Chapter 4: Cash and Internal Controls
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Chapter 5: Receivables and Sales
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Chapter 6: Inventory and Cost of Goods Sold
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Chapter 7: Long-Term Assets
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Chapter 8: Current Liabilities
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Chapter 9: Long-Term Liabilities
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Chapter 10: Stockholders’ Equity
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Chapter 11: Statement of Cash Flows
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Chapter 12: Financial Statement Analysis
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,Chapterg1g AgFrameworkgforgFinancialgAccounting

1) Accountinggisgagsystemgofgmaintaininggrecordsgofgagcompany'sgoperationsgandgcommunic
atinggthatginformationgtogdecisiongmakers.

Answer:gTRUEg
Difficulty:g1gEasy
Topic:g DefininggAccounting
LearninggObjective:g 01-
01gDescribegthegtwogprimarygfunctionsgofgfinancialgaccounting.gBloom's:gRemember
AACSB:gReflectivegThinkingg
AICPA:g BBgCriticalgThinking

2) Accountingginformationgisgusedgbyginvestorsgtogdecidegwhethergtoginvestgingagcompany'sgsto
ck.

Answer:gTRUEg
Difficulty:g1gEasy
Topic:g DefininggAccounting
LearninggObjective:g 01-
01gDescribegthegtwogprimarygfunctionsgofgfinancialgaccounting.gBloom's:gRemember
AACSB:gReflectivegThinkingg
AICPA:g BBgCriticalgThinking

3) Accountingginformationgisgusedgbygcreditorsgtogdecidegwhethergtoginvestgingagcompany'sgsto
ck.

Answer:g FALSE
Explanation:gCreditorsglendgmoneygtogagcompan
y.gDifficulty:g1gEasy
Topic:g DefininggAccounting
LearninggObjective:g 01-
01gDescribegthegtwogprimarygfunctionsgofgfinancialgaccounting.gBloom's:gRemember
AACSB:gReflectivegThinkingg
AICPA:g BBgCriticalgThinking

4) Thegprimarygfunctionsgofgfinancialgaccountinggaregtogmeasuregbusinessgactivitiesgofgagcom
panygandgtogcommunicategthosegmeasurementsgtoginternalgpartiesgforgdecision-
makinggpurposes.

Answer:g FALSE
Explanation:gFinancialgaccountinggprimarilygservesgtogprovideginformationgtogexternalgparti
es.gDifficulty:g2gMedium
Topic:g DefininggAccounting

, LearninggObjective:g 01-
01gDescribegthegtwogprimarygfunctionsgofgfinancialgaccounting.gBloom's:gUnderstand
AACSB:gReflectivegThinkingg
AICPA:g BBgCriticalgThinking