TEST BANK Financial Accounting, 6th
Edition
Chapters 1 – 12 Complete
By David Spiceland, Wayne Thomas and Don Herrmann
,TABLE OF CONTENTS tx tx tx
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 communicating
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that information to decision makers.
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Answer: TRUE tx tx
Difficulty: 1 Easy tx tx
Topic: Defining Accounting
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Learning Objective: 01- tx t x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective Thinking
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AICPA: BB Critical Thinkin
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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 tx tx
Difficulty: 1 Easy tx tx
Topic: Defining Accounting
t x tx
Learning Objective: 01- tx t x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective Thinking
tx tx tx
AICPA: BB Critical Thinkin
t x tx tx
g
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE t x
Explanation: Creditors lend money to a company.D
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ifficulty: 1 Easy tx tx
Topic: Defining Accounting
t x tx
Learning Objective: 01- tx t x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective Thinking
tx tx tx
AICPA: BB Critical Thinkin
t x tx tx
g
4) The primary functions of financial accounting are to measure business activities of a company
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and to communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE t x
Explanation: Financial accounting primarily serves to provide information to external parties.
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Difficulty: 2 Medium tx tx
Topic: Defining Accounting
t x tx
Learning Objective: 01- tx t x
01 Describe the two primary functions of financial accounting.Bloom's: Understand
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AACSB: Reflective Thinking
tx tx tx
, AICPA: BB Critical Thinkin
t x tx tx
g
Edition
Chapters 1 – 12 Complete
By David Spiceland, Wayne Thomas and Don Herrmann
,TABLE OF CONTENTS tx tx tx
Chapter 1: A Framework for Financial Accounting
tx tx tx tx tx tx
Chapter 2: The Accounting Cycle: During the Period
tx tx tx tx tx tx tx
Chapter 3: The Accounting Cycle: End of the Period
tx tx tx tx tx tx tx tx
Chapter 4: Cash and Internal Controls
tx tx tx tx tx
Chapter 5: Receivables and Sales
tx tx tx tx
Chapter 6: Inventory and Cost of Goods Sold
tx tx tx tx tx tx tx
Chapter 7: Long-Term Assets
tx tx tx
Chapter 8: Current Liabilities
tx tx tx
Chapter 9: Long-Term Liabilities
tx tx tx
Chapter 10: Stockholders’ Equity
tx tx tx
Chapter 11: Statement of Cash Flows
tx tx tx tx tx
Chapter 12: Financial Statement Analysis
tx tx tx tx
,Chapter 1 A Framework for Financial Accounting
tx t x tx tx tx tx
1) Accounting is a system of maintaining records of a company's operations and communicating
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that information to decision makers.
tx tx tx tx
Answer: TRUE tx tx
Difficulty: 1 Easy tx tx
Topic: Defining Accounting
t x tx
Learning Objective: 01- tx t x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
tx tx tx tx tx tx tx tx tx tx
AACSB: Reflective Thinking
tx tx tx
AICPA: BB Critical Thinkin
t x tx tx
g
2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE tx tx
Difficulty: 1 Easy tx tx
Topic: Defining Accounting
t x tx
Learning Objective: 01- tx t x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective Thinking
tx tx tx
AICPA: BB Critical Thinkin
t x tx tx
g
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE t x
Explanation: Creditors lend money to a company.D
tx tx tx tx tx tx tx
ifficulty: 1 Easy tx tx
Topic: Defining Accounting
t x tx
Learning Objective: 01- tx t x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
tx tx tx tx tx tx tx tx tx tx
AACSB: Reflective Thinking
tx tx tx
AICPA: BB Critical Thinkin
t x tx tx
g
4) The primary functions of financial accounting are to measure business activities of a company
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and to communicate those measurements to internal parties for decision-making purposes.
tx tx tx tx tx tx tx tx tx tx
Answer: FALSE t x
Explanation: Financial accounting primarily serves to provide information to external parties.
tx tx tx tx tx tx tx tx tx tx tx
Difficulty: 2 Medium tx tx
Topic: Defining Accounting
t x tx
Learning Objective: 01- tx t x
01 Describe the two primary functions of financial accounting.Bloom's: Understand
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AACSB: Reflective Thinking
tx tx tx
, AICPA: BB Critical Thinkin
t x tx tx
g
