TEST BANK For Financial Accounting, 6th Edition By David Spiceland, Wayne Thomas, Verified Chapters 1 - 12, Complete Newest Version

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Financial Accounting 6th Edition by Spiceland CH01
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ESSAY. Write your answer in the space provided or on a separate sheet of paper.
1) Match each business activity with its example.
1.A) Purchase office building.
2.B) Pay utilities.
3.C) Receive investments from stockholders.
Operating
Financing
Investing




2) Match each financial statement with the accounts reported on it:
1.A) Dividends.
2.B) Assets and liabilities.
3.C) Revenues and expenses.
Income statement
Statement of stockholders' equity
Balance sheet




3) Match each organization to its role:
1.A) Ensure that auditors follow strict guidelines when conducting their audits.
2.B) Independent, private-sector group that is primarily responsible for setting financial
reporting rules in the United States.
3.C) Develop a single set of high-quality, understandable global accounting standards.
4.D) Enforce proper application of financial reporting rules for companies whose securities are
publicly traded.
Financial Accounting Standards Board
Public Company Accounting Oversight Board
International Accounting Standards Board
Securities and Exchange Commission



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,DOWNLOAD THE Test Bank for Financial Accounting 6th Edition Spiceland
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Financial Accounting 6th Edition by Spiceland CH01
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4) Match each qualitative characteristic with its definition:
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1.A) All information necessary to describe an item is reported.
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2.B) Information provides feedback on past activities.
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3.C) Information is presented in time to make useful decisions.
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4.D) Information is useful in helping to forecast future outcomes.
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5.E) Measurements that independent parties would agree upon.
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6.F) Information that does not bias the decision maker. Predicti
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ve value nm




Confirmatory value nm




nmVerifiability Timel nm




iness Neutrality Co
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mpleteness




5) For each transaction, indicate whether a company would classify the related account as a
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n asset, liability, stockholders' equity, dividend, revenue, or expense.
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Transactions Related Accounts nm




1. Receive cash from investors. nm nm nm Common Stock nm




2. Pay rent for the current period.
nm nm nm nm nm Rent Expense
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3. Purchase office equipment. nm nm Equipment
4. Pay cash to stockholders.nm nm nm Dividends
5. Provide services to customers. nm nm nm Service Revenue nm




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Financial Accounting 6th Edition by Spiceland CH01
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6) Account classifications include assets, liabilities, stockholders' equity, dividends
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, revenues, and expenses. Indicate the account classification for each account name. A
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ccount Classifications
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1. Common Stock nm



Sell common stock nm nm



to investors.
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2. Cash
Receive cash f nm nm



rom customers. nm




3. Salaries Payable nm



Incur amounts owed nm nm



to employees. nm nm




4. Service Revenue Sell services to customers.
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5. Utilities Expense Incur cost of utilities.
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6. Supplies
Purchase of off nm nm



ice supplies. nm




7. Pay for cost of a nm nm nm nm



Advertisin dvertising.
g Expense
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8. Buildings
Purchase building nm nm



for operations.nm




9. Accounts Payable nm



Purchase supplie nm



s on credit.
nm nm




10. Dividends Distribute cash to nm nm



stockholders.




7) Indicate whether a company would classify the transaction as financing, investing,
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or operating.
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Transactions
1. Receive cash from investors.
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2. Pay rent for the current period.
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