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

TestBankForIntermediateAccounting,
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11th Edition
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by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
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Test name: chapterq q




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TERM PHRASE Term
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1.Predictive va
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projecting cash flows. q q




2. Relevance
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Pertinent to the decision at q q q q 2
hand.
3. Distribution
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owners to the decision.
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4. Confirmatory
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Decrease in equity due q q q 3
value totransfers to owners.
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5. Timeliness
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Information confirms q 4
expectations.
2)
TERM PHRASE Term
numberthatm
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atches
the phrase.
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1. Gain
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fundamental decision- q




specificquality. q




2. Materiality
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Results if an asset is sold
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more than book value.
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3. Completeness
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Contains all information q q 3
necessary for faithful q q




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




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, 5. Faithful
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Concerns the decision-making q q 2
representation
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impact of both the amount
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andnature of an item.
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3)
TERM PHRASE Term
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q phrase.
1. Neutrality Important in analysis between q q q 2
firms.
2. Comparability Accounting information should q q 1
be unbiased.
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3. Consistency The decision to include an
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amount in the q q




financialstatements.
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4. Cost-effectiveness q Applying the same accounting q q q 3
practices over time. q q




5. Recognition Considers the value of using q q q q 4
information relative to cost q q q




ofproviding it.
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4)
TERM PHRASE Term
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q phrase.
1. Monetary Implies consensus among q q 2
unitassumption
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different observers. q




2. Verifiability Assumes all transactions can be q q q q 3
identified with a q q




particularentity.
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3. Economic Assumes an entity will continue q q q q 4
entityassumption
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to operate indefinitely.
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4. Going Requires reporting the q q 5
concernassumpti
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financial life of an entity q q q q




on indiscrete time frames.
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Ignores the possibility of q q q 1
5. Periodicity q inflation.
assumption
5)
TERM PHRASE Term number
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that matches
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, the phrase.
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1. Historical
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