TEST BANK Financial Accounting, 6th Edition
Chapters 1 – 12 Complete
By David Spiceland, Wayne Thomas and Don Herrmann
,TABLE OF CONTENTS
Chapter 1: A Framework for Financial Accounting
Chapter 2: The Accounting Cycle: During the Period
Chapter 3: The Accounting Cycle: End of the Period
Chapter 4: Cash and Internal Controls
Chapter 5: Receivables and Sales
Chapter 6: Inventory and Cost of Goods Sold
Chapter 7: Long-Term Assets
Chapter 8: Current Liabilities
Chapter 9: Long-Term Liabilities
Chapter 10: Stockholders’ Equity
Chapter 11: Statement of Cash Flows
Chapter 12: Financial Statement Analysis
,Chapter 1 A Framework for Financial Accounting
S S S S S S
1) Accounting is a system of maintaining records of a company's operations and
S S S S S S S S S S S
communicatingthat information to decision makers.
S S S S S S
Answer: TRUE
S
Difficulty: 1 Easy
S S S
Topic: Defining Accounting
S S
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
S S S S S S S S S S
Bloom's: Remember
S S
AACSB: Reflective Thinking
S S
AICPA: BB Critical
S S S
Thinking
S
2) Accounting information is used by investors to decide whether to invest in a company's stock.
S S S S S S S S S S S S S S
Answer: TRUE
S
Difficulty: 1 Easy
S S S
Topic: Defining Accounting
S S
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
S S S S S S S S S S
Bloom's: Remember
S S
AACSB: Reflective Thinking
S S
AICPA: BB Critical
S S S
Thinking
S
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
S S S S S S S S S S S S S S
Answer: FALSE S
Explanation: Creditors lend money to a company.
S S S S S S
Difficulty: 1 Easy
S S S
Topic: Defining Accounting
S S
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
S S S S S S S S S S
Bloom's: Remember
S S
AACSB: Reflective Thinking
S S
AICPA: BB Critical
S S S
Thinking
S
4) The primary functions of financial accounting are to measure business activities of a
S S S S S S S S S S S S
companyand to communicate those measurements to internal parties for decision-making
S S S S S S S S S S S
purposes.
S
Answer: FALSE S
Explanation: Financial accounting primarily serves to provide information to external parties.
S S S S S S S S S S
Difficulty: 2 Medium
S S S
Topic: Defining Accounting
S S
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
S S S S S S S S S S
Bloom's: Understand
S S
, AACSB: Reflective Thinking
S S
AICPA: BB Critical
S S S
Thinking
S
5) Financing activities are transactions involving external sources of funding.
S S S S S S S S
Answer: TRUES
Difficulty: 1 Easy
S S S
Topic: Measuring Business Activities
S S S
Learning Objective: 01-02 Understand the business activities that financial accounting
S S S S S S S S S
measures.
S
Bloom's: Remember
S
AACSB: Reflective
S S
ThinkingAICPA: FN
S S S
Measurement
S
6) Investing activities include the purchase and sale of long-term resources.
S S S S S S S S S
Answer: TRUES
Difficulty: 1 Easy
S S S
Topic: Measuring Business Activities
S S S
Learning Objective: 01-02 Understand the business activities that financial accounting
S S S S S S S S S
measures.
S
Bloom's: Remember
S
AACSB: Reflective
S S
ThinkingAICPA: FN
S S S
Measurement
S
7) Operating activities include transactions that relate to the primary operations of the company.
S S S S S S S S S S S S
Answer: TRUES
Difficulty: 1 Easy
S S S
Topic: Measuring Business Activities
S S S
Learning Objective: 01-02 Understand the business activities that financial accounting
S S S S S S S S S
measures.
S
Bloom's: Remember
S
AACSB: Reflective
S S
ThinkingAICPA: FN
S S S
Measurement
S
8) A corporation is an entity that is legally separate from its owners.
S S S S S S S S S S S
Answer: TRUES
Difficulty: 1 Easy
S S S
Topic: Measuring Business Activities
S S S
Learning Objective: 01-02 Understand the business activities that financial accounting
S S S S S S S S S
measures.
S
Bloom's: Remember AACSB:
SSS S
Reflective ThinkingAICPA:
S S S
Chapters 1 – 12 Complete
By David Spiceland, Wayne Thomas and Don Herrmann
,TABLE OF CONTENTS
Chapter 1: A Framework for Financial Accounting
Chapter 2: The Accounting Cycle: During the Period
Chapter 3: The Accounting Cycle: End of the Period
Chapter 4: Cash and Internal Controls
Chapter 5: Receivables and Sales
Chapter 6: Inventory and Cost of Goods Sold
Chapter 7: Long-Term Assets
Chapter 8: Current Liabilities
Chapter 9: Long-Term Liabilities
Chapter 10: Stockholders’ Equity
Chapter 11: Statement of Cash Flows
Chapter 12: Financial Statement Analysis
,Chapter 1 A Framework for Financial Accounting
S S S S S S
1) Accounting is a system of maintaining records of a company's operations and
S S S S S S S S S S S
communicatingthat information to decision makers.
S S S S S S
Answer: TRUE
S
Difficulty: 1 Easy
S S S
Topic: Defining Accounting
S S
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
S S S S S S S S S S
Bloom's: Remember
S S
AACSB: Reflective Thinking
S S
AICPA: BB Critical
S S S
Thinking
S
2) Accounting information is used by investors to decide whether to invest in a company's stock.
S S S S S S S S S S S S S S
Answer: TRUE
S
Difficulty: 1 Easy
S S S
Topic: Defining Accounting
S S
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
S S S S S S S S S S
Bloom's: Remember
S S
AACSB: Reflective Thinking
S S
AICPA: BB Critical
S S S
Thinking
S
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
S S S S S S S S S S S S S S
Answer: FALSE S
Explanation: Creditors lend money to a company.
S S S S S S
Difficulty: 1 Easy
S S S
Topic: Defining Accounting
S S
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
S S S S S S S S S S
Bloom's: Remember
S S
AACSB: Reflective Thinking
S S
AICPA: BB Critical
S S S
Thinking
S
4) The primary functions of financial accounting are to measure business activities of a
S S S S S S S S S S S S
companyand to communicate those measurements to internal parties for decision-making
S S S S S S S S S S S
purposes.
S
Answer: FALSE S
Explanation: Financial accounting primarily serves to provide information to external parties.
S S S S S S S S S S
Difficulty: 2 Medium
S S S
Topic: Defining Accounting
S S
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
S S S S S S S S S S
Bloom's: Understand
S S
, AACSB: Reflective Thinking
S S
AICPA: BB Critical
S S S
Thinking
S
5) Financing activities are transactions involving external sources of funding.
S S S S S S S S
Answer: TRUES
Difficulty: 1 Easy
S S S
Topic: Measuring Business Activities
S S S
Learning Objective: 01-02 Understand the business activities that financial accounting
S S S S S S S S S
measures.
S
Bloom's: Remember
S
AACSB: Reflective
S S
ThinkingAICPA: FN
S S S
Measurement
S
6) Investing activities include the purchase and sale of long-term resources.
S S S S S S S S S
Answer: TRUES
Difficulty: 1 Easy
S S S
Topic: Measuring Business Activities
S S S
Learning Objective: 01-02 Understand the business activities that financial accounting
S S S S S S S S S
measures.
S
Bloom's: Remember
S
AACSB: Reflective
S S
ThinkingAICPA: FN
S S S
Measurement
S
7) Operating activities include transactions that relate to the primary operations of the company.
S S S S S S S S S S S S
Answer: TRUES
Difficulty: 1 Easy
S S S
Topic: Measuring Business Activities
S S S
Learning Objective: 01-02 Understand the business activities that financial accounting
S S S S S S S S S
measures.
S
Bloom's: Remember
S
AACSB: Reflective
S S
ThinkingAICPA: FN
S S S
Measurement
S
8) A corporation is an entity that is legally separate from its owners.
S S S S S S S S S S S
Answer: TRUES
Difficulty: 1 Easy
S S S
Topic: Measuring Business Activities
S S S
Learning Objective: 01-02 Understand the business activities that financial accounting
S S S S S S S S S
measures.
S
Bloom's: Remember AACSB:
SSS S
Reflective ThinkingAICPA:
S S S
