TEST BANK for Intermediate Accounting, 11th Edition by Spiceland, Nelson, Thomas, and Winchel |all chapters covered|

Test Bank For Intermediate Accounting,
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11th Edition
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by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
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Version 1
b 1

,Answer Key b




Test name: chapter
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11)
b b




TERM PHRASE Term
b numberthat
b


b matchesthe b


b phrase.
1. Predictive va lue
b b Information is useful in b b b 1
projecting cash flows. b b


2. Relevance
b Pertinent to the decision at b b b b 2
hand.
3. Distribution to
b Information is available prior b b b 5
owners to the decision.
b b


4. Confirmatory
b Decrease in equity due
b b b 3
value totransfers to owners.
b b b b


5. Timeliness
b Information confirms b 4
expectations.
2)
TERM PHRASE Term
b numberthat b


b matches
the phrase.
b



1. Gain
b Along with relevance, a
b b b 5
fundamental decision- b


specificquality. b


2. Materiality
b Results if an asset is sold
b b b b b for 1
more than book value.
b b b


3. Completeness
b Contains all information
b b 3
necessary for faithful b b


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




Version 1 b 2

, 5. Faithful
b Concerns the decision-making
b b 2
representatio
b impact of both the amount
b b b b


n andnature of an item.
b b b b b




3)
TERM PHRASE Term
b numberthat
b


b matchesthe b


b phrase.
1. Neutrality Important in analysis between b b b 2
firms.
2. Comparability Accounting information should b b 1
be unbiased.
b


3. Consistency The decision to include an
b b b b 5
amount in the b b


financialstatements.
b b


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


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


ofproviding it.
b b b



4)
TERM PHRASE Term
b numberthat
b


b matchesthe b


b phrase.
1. Monetary Implies consensus among b b 2
unitassumption
b b different observers. b


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


particularentity.
b b


3. Economic Assumes an entity will continue
b b b b 4
entityassumption
b b to operate indefinitely.
b b


4. Going Requires reporting the b b 5
concernassumpti
b b financial life of an entity b b b b


on indiscrete time frames.
b b b b


Ignores the possibility of
b b b 1
5. Periodicity b inflation.
assumption
5)
TERM PHRASE Term number
b




Version 1 b 3

, that matches
b


the phrase.
b



1. Historical cost
b Basis of measurement for fixed
b b b b 1




Version 1b 4