Test Bank For
Intermediate Accounting, 11th Edition by David Spiceland, Mark
Nelson, Wayne Thomas, Jennifer Chapter 1-21
Answers Are At the End of Each Chapter
Chapter 1
Student name:__________
1) Listed below are five terms followed by a list of phrases that describe or characterize
each of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Predictive value Information is useful in ____
projecting cash flows.
2. Relevance Pertinent to the decision at ____
hand.
3. Distribution to Information is available prior ____
owners to the decision.
4. Confirmatory Decrease in equity due to ____
value transfers to owners.
5. Timeliness Information confirms ____
expectations.
Question Details
Topic : Conceptual framework--Purpose
Difficulty : 2 Medium
Topic : Concepts--Qualitative characteristics
Topic : Concepts--Elements of financial statements
Topic : GAAP--Underlying assumptions
Learning Objective : 01-06 Explain the purpose of the conceptual framework.
Learning Objective : 01-08 Describe the four basic assumptions underlying GAAP.
Bloom's : Understand
AACSB : Reflective Thinking
AICPA : FN Measurement
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Learning Objective : 01-07 Identify the objective and qualitative characteristics of financial report
Gradable : manual
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, 2) Listed below are five terms followed by a list of phrases that describe or characterize
each of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Gain Along with relevance, a ____
fundamental decision-specific
quality.
2. Materiality Results if an asset is sold for ____
more than book value.
3. Completeness Contains all information ____
necessary for faithful
representation.
4. Comprehensive The change in equity from ____
income nonowner transactions.
5. Faithful Concerns the decision-making ____
representation impact of both the amount and
nature of an item.
Question Details
Topic : Conceptual framework--Purpose
Difficulty : 2 Medium
Topic : Concepts--Qualitative characteristics
Topic : Concepts--Elements of financial statements
Learning Objective : 01-06 Explain the purpose of the conceptual framework.
Bloom's : Understand
AACSB : Reflective Thinking
AICPA : FN Measurement
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Learning Objective : 01-07 Identify the objective and qualitative characteristics of financial report
Gradable : manual
3) Listed below are five terms followed by a list of phrases that describe or characterize
each of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Neutrality Important in analysis between ____
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, firms.
2. Comparability Accounting information should ____
be unbiased.
3. Consistency The decision to include an ____
amount in the financial
statements.
4. Cost-effectiveness Applying the same accounting ____
practices over time.
5. Recognition Considers the value of using ____
information relative to cost of
providing it.
Question Details
Topic : Conceptual framework--Purpose
Difficulty : 2 Medium
Topic : Concepts--Qualitative characteristics
Learning Objective : 01-06 Explain the purpose of the conceptual framework.
Bloom's : Understand
AACSB : Reflective Thinking
AICPA : FN Measurement
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Learning Objective : 01-07 Identify the objective and qualitative characteristics of financial report
Topic : Concepts--Recognition-Measurement-Disclosure
Learning Objective : 01-09 Describe the recognition, measurement, and disclosure concepts that guide
Gradable : manual
4) Listed below are five terms are followed by a list of phrases that describe or characterize
five of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Monetary unit Implies consensus among ____
assumption different observers.
2. Verifiability Assumes all transactions can be ____
identified with a particular
entity.
3. Economic entity Assumes an entity will continue ____
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, assumption to operate indefinitely.
4. Going concern Requires reporting the ____
assumption financial life of an entity in
discrete time frames.
5. Periodicity Ignores the possibility of ____
assumption inflation.
Question Details
Difficulty : 2 Medium
Topic : Concepts--Qualitative characteristics
Topic : GAAP--Underlying assumptions
Learning Objective : 01-08 Describe the four basic assumptions underlying GAAP.
Bloom's : Understand
AACSB : Reflective Thinking
AICPA : FN Measurement
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Learning Objective : 01-07 Identify the objective and qualitative characteristics of financial report
Gradable : manual
5) Listed below are five terms followed by a list of phrases that describe or characterize
each of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Historical cost Basis of measurement for fixed ____
assets.
2. Materiality Discounts future cash flows. ____
3. Revenue Occurs when goods or services ____
recognition are transferred to the
customer.
4. Full disclosure Reporting of all information ____
that could affect decisions.
5. Present value Application of GAAP sometimes ____
avoided under this constraint.
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Intermediate Accounting, 11th Edition by David Spiceland, Mark
Nelson, Wayne Thomas, Jennifer Chapter 1-21
Answers Are At the End of Each Chapter
Chapter 1
Student name:__________
1) Listed below are five terms followed by a list of phrases that describe or characterize
each of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Predictive value Information is useful in ____
projecting cash flows.
2. Relevance Pertinent to the decision at ____
hand.
3. Distribution to Information is available prior ____
owners to the decision.
4. Confirmatory Decrease in equity due to ____
value transfers to owners.
5. Timeliness Information confirms ____
expectations.
Question Details
Topic : Conceptual framework--Purpose
Difficulty : 2 Medium
Topic : Concepts--Qualitative characteristics
Topic : Concepts--Elements of financial statements
Topic : GAAP--Underlying assumptions
Learning Objective : 01-06 Explain the purpose of the conceptual framework.
Learning Objective : 01-08 Describe the four basic assumptions underlying GAAP.
Bloom's : Understand
AACSB : Reflective Thinking
AICPA : FN Measurement
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Learning Objective : 01-07 Identify the objective and qualitative characteristics of financial report
Gradable : manual
Version 1 1
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, 2) Listed below are five terms followed by a list of phrases that describe or characterize
each of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Gain Along with relevance, a ____
fundamental decision-specific
quality.
2. Materiality Results if an asset is sold for ____
more than book value.
3. Completeness Contains all information ____
necessary for faithful
representation.
4. Comprehensive The change in equity from ____
income nonowner transactions.
5. Faithful Concerns the decision-making ____
representation impact of both the amount and
nature of an item.
Question Details
Topic : Conceptual framework--Purpose
Difficulty : 2 Medium
Topic : Concepts--Qualitative characteristics
Topic : Concepts--Elements of financial statements
Learning Objective : 01-06 Explain the purpose of the conceptual framework.
Bloom's : Understand
AACSB : Reflective Thinking
AICPA : FN Measurement
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Learning Objective : 01-07 Identify the objective and qualitative characteristics of financial report
Gradable : manual
3) Listed below are five terms followed by a list of phrases that describe or characterize
each of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Neutrality Important in analysis between ____
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, firms.
2. Comparability Accounting information should ____
be unbiased.
3. Consistency The decision to include an ____
amount in the financial
statements.
4. Cost-effectiveness Applying the same accounting ____
practices over time.
5. Recognition Considers the value of using ____
information relative to cost of
providing it.
Question Details
Topic : Conceptual framework--Purpose
Difficulty : 2 Medium
Topic : Concepts--Qualitative characteristics
Learning Objective : 01-06 Explain the purpose of the conceptual framework.
Bloom's : Understand
AACSB : Reflective Thinking
AICPA : FN Measurement
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Learning Objective : 01-07 Identify the objective and qualitative characteristics of financial report
Topic : Concepts--Recognition-Measurement-Disclosure
Learning Objective : 01-09 Describe the recognition, measurement, and disclosure concepts that guide
Gradable : manual
4) Listed below are five terms are followed by a list of phrases that describe or characterize
five of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Monetary unit Implies consensus among ____
assumption different observers.
2. Verifiability Assumes all transactions can be ____
identified with a particular
entity.
3. Economic entity Assumes an entity will continue ____
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, assumption to operate indefinitely.
4. Going concern Requires reporting the ____
assumption financial life of an entity in
discrete time frames.
5. Periodicity Ignores the possibility of ____
assumption inflation.
Question Details
Difficulty : 2 Medium
Topic : Concepts--Qualitative characteristics
Topic : GAAP--Underlying assumptions
Learning Objective : 01-08 Describe the four basic assumptions underlying GAAP.
Bloom's : Understand
AACSB : Reflective Thinking
AICPA : FN Measurement
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Learning Objective : 01-07 Identify the objective and qualitative characteristics of financial report
Gradable : manual
5) Listed below are five terms followed by a list of phrases that describe or characterize
each of the terms. Match each phrase with the correct number code for the term.
TERM PHRASE Term number
that matches
the phrase.
1. Historical cost Basis of measurement for fixed ____
assets.
2. Materiality Discounts future cash flows. ____
3. Revenue Occurs when goods or services ____
recognition are transferred to the
customer.
4. Full disclosure Reporting of all information ____
that could affect decisions.
5. Present value Application of GAAP sometimes ____
avoided under this constraint.
Version 1 4
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