Financial accounting 6th edition By David Spiceland ,Wayne Thomas and Don Herrmann Chapters 1- 12

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

,TABLE,OF,CONTENTS,

Chapter,1:,A,Framework,for,Financial,Accounting

Chapter,2:,The,Accounting,Cycle:,During,the,Period

Chapter,3:,The,Accounting,Cycle:,End,of,the,Period

Chapter,4:,Cash,and,Internal,Controls

Chapter,5:,Receivables,and,Sales

Chapter,6:,Inventory,and,Cost,of,Goods,Sold

Chapter,7:,Long-Term,Assets

Chapter,8:,Current,Liabilities

Chapter,9:,Long-Term,Liabilities

Chapter,10:,Stockholders’,Equity

Chapter,11:,Statement,of,Cash,Flows

Chapter,12:,Financial,Statement,Analysis

,Chapter,1, A,Framework,for,Financial,Accounting

1) Accounting,is,a,system,of,maintaining,records,of,a,company's,operations,and,communicating,that,i
nformation,to,decision,makers.

Answer:,TRUE,Di
fficulty:,1,Easy
Topic:, Defining,Accounting
Learning,Objective:, 01-
01,Describe,the,two,primary,functions,of,financial,accounting.,Bloom's:,Remember
AACSB:,Reflective,Thinking,AI
CPA:, BB,Critical,Thinking

2) Accounting,information,is,used,by,investors,to,decide,whether,to,invest,in,a,company's,stock.

Answer:,TRUE,Di
fficulty:,1,Easy
Topic:, Defining,Accounting
Learning,Objective:, 01-
01,Describe,the,two,primary,functions,of,financial,accounting.,Bloom's:,Remember
AACSB:,Reflective,Thinking,AI
CPA:, BB,Critical,Thinking

3) Accounting,information,is,used,by,creditors,to,decide,whether,to,invest,in,a,company's,stock.

Answer:, FALSE
Explanation:,Creditors,lend,money,to,a,company.,Diffi
culty:,1,Easy
Topic:, Defining,Accounting
Learning,Objective:, 01-
01,Describe,the,two,primary,functions,of,financial,accounting.,Bloom's:,Remember
AACSB:,Reflective,Thinking,AI
CPA:, BB,Critical,Thinking

4) The,primary,functions,of,financial,accounting,are,to,measure,business,activities,of,a,company,and,t
o,communicate,those,measurements,to,internal,parties,for,decision-making,purposes.

Answer:, FALSE
Explanation:,Financial,accounting,primarily,serves,to,provide,information,to,external,parties.,Difficul
ty:,2,Medium
Topic:, Defining,Accounting
Learning,Objective:, 01-
01,Describe,the,two,primary,functions,of,financial,accounting.,Bloom's:,Understand
AACSB:,Reflective,Thinking,AI
CPA:, BB,Critical,Thinking

, 5) Financing,activities,are,transactions,involving,external,sources,of,funding.

Answer:,TRUE,Di
fficulty:,1,Easy
Topic:, Measuring,Business,Activities
Learning,Objective:, 01-02,Understand,the,business,activities,that,financial,accounting,measures.
Bloom's:, Remember,AACSB:,
Reflective,Thinking,AICPA:, F
N,Measurement

6) Investing,activities,include,the,purchase,and,sale,of,long-term,resources.

Answer:,TRUE,Di
fficulty:,1,Easy
Topic:, Measuring,Business,Activities
Learning,Objective:, 01-02,Understand,the,business,activities,that,financial,accounting,measures.
Bloom's:, Remember,AACSB:,
Reflective,Thinking,AICPA:, F
N,Measurement

7) Operating,activities,include,transactions,that,relate,to,the,primary,operations,of,the,company.

Answer:,TRUE,Di
fficulty:,1,Easy
Topic:, Measuring,Business,Activities
Learning,Objective:, 01-02,Understand,the,business,activities,that,financial,accounting,measures.
Bloom's:, Remember,AACSB:,
Reflective,Thinking,AICPA:, F
N,Measurement

8) A,corporation,is,an,entity,that,is,legally,separate,from,its,owners.

Answer:,TRUE,Di
fficulty:,1,Easy
Topic:, Measuring,Business,Activities
Learning,Objective:, 01-02,Understand,the,business,activities,that,financial,accounting,measures.
Bloom's:,,,Remember,AACSB:,
Reflective,Thinking,AICPA:, BB
,Critical,Thinking