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




Version 1 1

,Answer Key

Test name: chapter 1

1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive va lue 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 afuture acash aflows. 5
3. Revenue Occurs awhen agoods aor aservices 3
arecognitio are atransferred ato
n athea
customer.
4. Full adisclosure Reporting aof aall ainformation 4
that acould aaffect adecisions.
5. Present avalue Application aof aGAAP asometimes 2
avoided aunder athis aconstraint.
6)
TERM PHRASE Term anumber
that
a
amatchesa
the
aphrase.
1. Financial Undermines arepresentational 3
aAccounting faithfulness aby abeing
aStandardsa
Board ainconsistent awith
2. Accounting aneutrality.
aPrinciples It aestablished aGAAP abefore athe 2
aBoard FASB.
3. Conservatism Its aEITF aIssues aare aGAAP awhen 1
entered ain athe
aAccountingaStandards
aCodification.
4. American It ahas athe aauthority ato aset aU.S. 5
aInstitute aof accounting astandards.
aCPAsa
(AICPA)
5. Securities aand It ais athe anational aorganization 4
aExchange for aCPAs ain athe aUnited aStates.
aCommission

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 Claims aof acreditors aagainst 5
abya
owners the aassets aof aa abusiness.
5. Liabilities Transfers aof aresources ain 4

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