Test Bank for Financial Accounting, 5th Edition by David Spiceland, Wayne Thomas, and Don Herrmann

TEST BANK b




Financial Accounting, 6th Edition
b b b b




Chapters 1 – 12 Complete
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By David Spiceland, Wayne Thomas and Don Herrmann
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,TABLE OF CONTENTS b b b




Chapter 1: A Framework for Financial Accounting
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Chapter 2: The Accounting Cycle: During the Period
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Chapter 3: The Accounting Cycle: End of the Period
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Chapter 4: Cash and Internal Controls
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Chapter 5: Receivables and Sales
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Chapter 6: Inventory and Cost of Goods Sold
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Chapter 7: Long-Term Assets
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Chapter 8: Current Liabilities
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Chapter 9: Long-Term Liabilities
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Chapter 10: Stockholders’ Equity
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Chapter 11: Statement of Cash Flows
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Chapter 12: Financial Statement Analysis
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,Chapter b1 b A bFramework bfor bFinancial bAccounting

1) Accounting bis ba bsystem bof bmaintaining brecords bof ba bcompany's boperations band bcommunicating
that binformation bto bdecision bmakers.
b




Answer: bTRUE
bDifficulty: b1 bEasy

Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember

AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b




2) Accounting binformation bis bused bby binvestors bto bdecide bwhether bto binvest bin ba bcompany's bstock.

Answer: bTRUE
bDifficulty: b1 bEasy

Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember

AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b




3) Accounting binformation bis bused bby bcreditors bto bdecide bwhether bto binvest bin ba bcompany's bstock.

Answer: b FALSE
Explanation: bCreditors blend bmoney bto ba bcompany.
Difficulty: b1 bEasy
b

Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember

AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b




4) The bprimary bfunctions bof bfinancial baccounting bare bto bmeasure bbusiness bactivities bof ba bcompany
and bto bcommunicate bthose bmeasurements bto binternal bparties bfor bdecision-making bpurposes.
b




Answer: b FALSE
Explanation: bFinancial baccounting bprimarily bserves bto bprovide binformation bto bexternal bparties.
Difficulty: b2 bMedium
b

Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bUnderstand

AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b

, 5) Financing bactivities bare btransactions binvolving bexternal bsources bof bfunding.

Answer: bTRUE
bDifficulty: b1 bEasy

Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking

AICPA: b FN bMeasurement
b




6) Investing bactivities binclude bthe bpurchase band bsale bof blong-term bresources.

Answer: bTRUE
bDifficulty: b1 bEasy

Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking

AICPA: b FN bMeasurement
b




7) Operating bactivities binclude btransactions bthat brelate bto bthe bprimary boperations bof bthe bcompany.

Answer: bTRUE
bDifficulty: b1 bEasy

Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking

AICPA: b FN bMeasurement
b




8) A bcorporation bis ban bentity bthat bis blegally bseparate bfrom bits bowners.

Answer: bTRUE
bDifficulty: b1 bEasy

Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b b bRemember bAACSB:
bReflective bThinkingb AICPA:
b BB bCritical bThinking