Test Bank for Financial Accounting, 6th Edition by David Spiceland

TEST BANK v




Financial Accounting, 6th Edition
v v v




Chapters 1 – 12 Complete
v v v v




By David Spiceland, Wayne Thomas and Don Herrmann
v v v v v v v

,TABLE vOF vCONTENTS v




Chapter v1: vA vFramework vfor vFinancial vAccounting v Chapter v2: vThe

Accounting vCycle: vDuring vthe vPeriod v Chapter v3: vThe vAccounting
v



Cycle: vEnd vof vthe vPeriod v Chapter v4: vCash vand vInternal vControls
v




Chapter v5: vReceivables vand vSales

Chapter v6: vInventory vand vCost vof vGoods vSold v Chapter v7: vLong-Term

Assets
v



Chapter v8: vCurrent vLiabilities v v Chapter v9: vLong-

Term vLiabilities v Chapter v10: vStockholders’ vEquity

v Chapter v11: vStatement vof vCash vFlows

Chapter v12: vFinancial vStatement vAnalysis

,Chapter v1 v A vFramework vfor vFinancial vAccounting

1) Accounting vis va vsystem vof vmaintaining vrecords vof va vcompany's voperations vand
vcommunicating v that vinformation vto vdecision vmakers.




Answer: vTRUE
v Difficulty: v1 vEasy

Topic: v Defining vAccounting
Learning vObjective: v 01-01 vDescribe vthe vtwo vprimary vfunctions vof vfinancial
vaccounting.Bloom's: v Remember

AACSB: vReflective vThinking
v AICPA: v BB vCritical vThinking



2) Accounting vinformation vis vused vby vinvestors vto vdecide vwhether vto vinvest vin va vcompany's vstock.

Answer: vTRUE
v Difficulty: v1 vEasy

Topic: v Defining vAccounting
Learning vObjective: v 01-01 vDescribe vthe vtwo vprimary vfunctions vof vfinancial
vaccounting.Bloom's: v Remember

AACSB: vReflective vThinking
v AICPA: v BB vCritical vThinking



3) Accounting vinformation vis vused vby vcreditors vto vdecide vwhether vto vinvest vin va vcompany's vstock.

Answer: v FALSE
Explanation: vCreditors vlend vmoney vto va vcompany.
v Difficulty: v1 vEasy

Topic: v Defining vAccounting
Learning vObjective: v 01-01 vDescribe vthe vtwo vprimary vfunctions vof vfinancial
vaccounting.Bloom's: v Remember

AACSB: vReflective vThinking
v AICPA: v BB vCritical vThinking



4) The vprimary vfunctions vof vfinancial vaccounting vare vto vmeasure vbusiness vactivities vof va
vcompany v and vto vcommunicate vthose vmeasurements vto vinternal vparties vfor vdecision-making

vpurposes.




Answer: v FALSE
Explanation: vFinancial vaccounting vprimarily vserves vto vprovide vinformation vto vexternal vparties.
v Difficulty: v2 vMedium

Topic: v Defining vAccounting
Learning vObjective: v 01-01 vDescribe vthe vtwo vprimary vfunctions vof vfinancial
vaccounting.Bloom's: v Understand

AACSB: vReflective vThinking
v AICPA: v BB vCritical vThinking

, 5) Financing vactivities vare vtransactions vinvolving vexternal vsources vof vfunding.

Answer: vTRUE
v Difficulty: v1 vEasy

Topic: v Measuring vBusiness vActivities
Learning vObjective: v 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial
vaccountingmeasures. v Bloom's: v v Remember vAACSB:

Reflective vThinkingAICPA: v FN
vMeasurement



6) Investing vactivities vinclude vthe vpurchase vand vsale vof vlong-term vresources.

Answer: vTRUE
v Difficulty: v1 vEasy

Topic: v Measuring vBusiness vActivities
Learning vObjective: v 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial
vaccountingmeasures. v Bloom's: v v Remember vAACSB:

Reflective vThinkingAICPA: v FN
vMeasurement



7) Operating vactivities vinclude vtransactions vthat vrelate vto vthe vprimary voperations vof vthe
vcompany.




Answer: vTRUE
v Difficulty: v1 vEasy

Topic: v Measuring vBusiness vActivities
Learning vObjective: v 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial
vaccountingmeasures. v Bloom's: v v Remember vAACSB:

Reflective vThinkingAICPA: v FN
vMeasurement



8) A vcorporation vis van ventity vthat vis vlegally vseparate vfrom vits vowners.

Answer: vTRUE
v Difficulty: v1 vEasy

Topic: v Measuring vBusiness vActivities
Learning vObjective: v 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial
vaccountingmeasures. v Bloom's: v v Remember vAACSB:

Reflective vThinkingAICPA: v BB
vCritical vThinking