Financial Accounting, 6th Edition
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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 1 A Framework for Financial Accounting
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1) Accounting is a system of maintaining records of a company's operations and communicatingthat
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information to decision makers.
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Answer: TRUE b
Difficulty: 1 Easy
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Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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Remember
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AACSB: Reflective b
ThinkingAICPA: BB Critical
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Thinking
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2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE b
Difficulty: 1 Easy
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Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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Remember
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AACSB: Reflective b
ThinkingAICPA: BB Critical
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Thinking
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3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE b
Explanation: Creditors lend money to a b b b b b
company.Difficulty: 1 Easy
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Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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Remember
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AACSB: Reflective b
ThinkingAICPA: BB Critical
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Thinking
b
4) The primary functions of financial accounting are to measure business activities of a companyand to
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communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE b
Explanation: Financial accounting primarily serves to provide information to external
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parties.Difficulty: 2 Medium
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Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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Understand
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AACSB: Reflective b
, b ThinkingAICPA: BB Critical
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