Test Bank For Intermediate Accounting, 11th Edition by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer

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IntermediateAccounting,11thEdition
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Answer Key ap




Testname:chapter1 1)
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TERM PHRASE Term number ap




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apthe phrase.
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1. Predictive va
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projecting cash flows. ap ap




2. Relevance
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Pertinent to the decision at ap ap ap ap 2
hand.
3. Distribution
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owners to the decision.
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4. Confirmatory
ap Decrease in equity due to transfers ap ap ap ap ap 3
value to owners.
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5. Timeliness
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Information confirms ap 4
expectations.
2)
TERM PHRASE Term number ap




thatmatches
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the phrase. ap




1. Gain
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fundamentaldecision-specific p
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quality.
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2. Materiality
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Results if an asset is sold ap ap ap ap ap for 1
more than book value.
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3. Completeness
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Contains all information ap ap 3
necessary for faithful ap ap




representation.
4. Comprehensive
ap The change in equity from
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income nonowner transactions. ap




Version 1 1

, 5. Faithful
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representation
ap impact of both the amount and nature of
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an item.
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3)
TERM PHRASE Term number ap




thatmatches
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the phrase.
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Neutrality Important in analysis between ap ap ap 2
firms.
Comparability Accountinginformation should p
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be unbiased. ap




Consistency The decision to include an ap ap ap ap 5
amountinthefinancial statements. p
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Cost-effectiveness Applying the same accounting
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practices over time. ap ap




Recognition Considers the value of using ap ap ap ap 4
information relative to cost of ap ap ap ap




providing it. ap ap




4)
TERM PHRASE Term number ap




ap thatmatches p
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ap the phrase.
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Monetaryunit p
a Implies consensus among ap ap 2
assumption
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Verifiability Assumes all transactions can be ap ap ap ap 3
identifiedwithaparticular p
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entity.
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Economicentityp
a Assumes an entity will continue ap ap ap ap 4
assumption
ap to operate indefinitely.
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Goingconcern
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a Requiresreporting the ap ap 5
assumption
ap financial life of an entity in discrete ap ap ap ap ap ap




time frames.
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Periodicity Ignores the possibility of ap ap ap 1
assumption
ap inflation.
5)
TERM PHRASE Term number ap




that matches ap




the phrase.
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1. Historical
ap cost Basis of measurement for fixed
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, assets.
Materiality Discounts future cash flows. ap ap ap 5
Revenue Occurs when goods or services ap ap ap ap 3
recognition
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customer.
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Full disclosure
ap Reporting of all information ap ap ap 4
that could affect decisions. ap ap ap




Present value
ap Application of GAAP sometimes ap ap ap 2
avoided under this constraint. ap ap ap




6)
TERM PHRASE Term number ap




thatmatches
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a




the phrase.
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Financial Accounting
ap Undermines representational ap 3
Standards Board
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Accounting withneutrality.
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PrinciplesBoard
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a It established GAAP before the
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FASB.
Conservatism Its EITF Issues are GAAP when
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enteredintheAccounting Standards p
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Codification.
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American It has the authority to set U.S.
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InstituteofCPAs
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(AICPA)
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Securities and ap It is the national organization
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ExchangeCommission
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a for CPAs in the United States.
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7)
TERM PHRASE Term number
that matches
the phrase.
1. Expenses Net assets. 2
2. Equity Outflows of resources to 1
generate revenues.
3. Distributions to Cash dividends. 3
owners
Investmentsby p
a Claims of creditors against ap ap ap 5
owners
ap the assets of a business. ap ap ap ap




Liabilities Transfers of resources in ap ap ap 4
exchangeforcommonand preferred p
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stock.
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Version 1 3

, 8)
TERM PHRASE Term number ap




thatmatches
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a




the phrase.
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Losses Net outflows from peripheral
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transactions.
Assets Increases in equity from the ap ap ap ap 3
sale of goods and/or services.
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Revenues Results if an asset is sold for ap ap ap ap ap ap 5
more than book value. ap ap ap




Comprehensive All changes in equity except
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income
ap owner transactions. ap




Gains Probable future economic ap ap 2
benefitscontrolledbyan entity. p
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9)
TERM PHRASE Term number ap




thatmatches
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a




the phrase.
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SEC Establishes auditing standards in
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the U.S. for public companies.
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FASB Primary national organization of ap ap ap 7
accountants working in industry. ap ap ap




IASB Sets accounting standards in the
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United States. ap




AICPA Provides timely responses to ap ap ap 5
financial reporting issues. ap ap




EITF The FASB's parent organization.
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PCAOB Advises the FASB. ap ap 8
IMA FASB's predecessor.
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FASAC Regulates the financial reporting ap ap ap 1
for public companies.
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APB National organization of certified
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public accountants. ap




FAF Sets global accounting standards.
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Version 1 4