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

Test Bank For Intermediate Accounting, 11th Edition by David
Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Answers are at the end of each Chapter

Answer Key

Test name: chapter 1

1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive value Information is useful in 1
projecting cash flows.
2. Relevance Pertinent to the decision at 2
hand.
3. Distribution to Information is available prior 5
owners to the decision.
4. Confirmatory Decrease in equity due to 3
value transfers to owners.
5. Timeliness Information confirms 4
expectations.
2)
TERM PHRASE Term number
that matches
the phrase.
1. Gain Along with relevance, a 5
fundamental decision-specific
quality.
2. Materiality Results if an asset is sold for 1
more than book value.
3. Completeness Contains all information 3
necessary for faithful
representation.
4. Comprehensive The change in equity from 4
income nonowner transactions.



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, 5. Faithful Concerns the decision-making 2
representation impact of both the amount and
nature of an item.
3)
TERM PHRASE Term number
that matches
the phrase.
1. Neutrality Important in analysis between 2
firms.
2. Comparability Accounting information should 1
be unbiased.
3. Consistency The decision to include an 5
amount in the financial
statements.
4. Cost-effectiveness Applying the same accounting 3
practices over time.
5. Recognition Considers the value of using 4
information relative to cost of
providing it.
4)
TERM PHRASE Term number
that matches
the phrase.
1. Monetary unit Implies consensus among 2
assumption different observers.
2. Verifiability Assumes all transactions can be 3
identified with a particular
entity.
3. Economic entity Assumes an entity will continue 4
assumption to operate indefinitely.
4. Going concern Requires reporting the 5
assumption financial life of an entity in
discrete time frames.
5. Periodicity Ignores the possibility of 1
assumption inflation.
5)
TERM PHRASE Term number
that matches
the phrase.
1. Historical cost Basis of measurement for fixed 1


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, assets.
2. Materiality Discounts future cash flows. 5
3. Revenue Occurs when goods or services 3
recognition are transferred to the
customer.
4. Full disclosure Reporting of all information 4
that could affect decisions.
5. Present value Application of GAAP sometimes 2
avoided under this constraint.
6)
TERM PHRASE Term number
that matches
the phrase.
1. Financial Undermines representational 3
Accounting Standards faithfulness by being
Board inconsistent with neutrality.
2. Accounting It established GAAP before the 2
Principles Board FASB.
3. Conservatism Its EITF Issues are GAAP when 1
entered in the Accounting
Standards Codification.
4. American It has the authority to set U.S. 5
Institute of CPAs accounting standards.
(AICPA)
5. Securities and It is the national organization 4
Exchange Commission for CPAs in the United States.
7)
TERM PHRASE Term number
that matches
the phrase.
1. Expenses Net assets. 2
2. Equity Outflows of resources to 1
generate revenues.
3. Distributions to Cash dividends. 3
owners
4. Investments by Claims of creditors against 5
owners the assets of a business.
5. Liabilities Transfers of resources in 4
exchange for common and
preferred stock.



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, 8)
TERM PHRASE Term number
that matches
the phrase.
1. Losses Net outflows from peripheral 1
transactions.
2. Assets Increases in equity from the 3
sale of goods and/or services.
3. Revenues Results if an asset is sold for 5
more than book value.
4. Comprehensive All changes in equity except 4
income owner transactions.
5. Gains Probable future economic 2
benefits controlled by an
entity.
9)
TERM PHRASE Term number
that matches
the phrase.
1. SEC Establishes auditing standards in 6
the U.S. for public companies.
2. FASB Primary national organization of 7
accountants working in industry.
3. IASB Sets accounting standards in the 2
United States.
4. AICPA Provides timely responses to 5
financial reporting issues.
5. EITF The FASB's parent organization. 10
6. PCAOB Advises the FASB. 8
7. IMA FASB's predecessor. 9
8. FASAC Regulates the financial reporting 1
for public companies.
9. APB National organization of certified 4
public accountants.
10. FAF Sets global accounting standards. 3




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