TEST BANK For Financial Accounting, 6th Edition By David Spiceland, Wayne Thomas, Verified Chapters 1 - 12, Complete Newest Version

,
,TEST BANK FOR pc pc



Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herr
pc pc pc pc pc pc pc pc pc pc



mann

Chapter 1 pc A Framework for Financial Accounting
pc pc pc pc




1) Accounting is a system of maintaining records of a company's operations and communicatin
pc pc pc pc pc pc pc pc pc pc pc pc


g that information to decision makers.
pc pc pc pc pc




Answer: TRUE Dif p c pc


ficulty: 1 Easy pc pc


Topic: Defining Accounting pc


Learning Objective: 01- pc


01 Describe the two primary functions of financial accounting. Bloom's:
pc pc pc pc pc pc pc pc pc


Remember
AACSB:
Reflective Thinking pc pc


AICPA: BB Critical Thinking pc pc




2) Accounting information is used by investors to decide whether to invest in a company's stock.
pc pc pc pc pc pc pc pc pc pc pc pc pc pc




Answer: TRUE Dif p c pc


ficulty: 1 Easy pc pc


Topic: Defining Accounting pc


Learning Objective: 01- pc


01 Describe the two primary functions of financial accounting. Bloom's:
pc pc pc pc pc pc pc pc pc


Remember
AACSB:
Reflective Thinking pc pc


AICPA: BB Critical Thinking pc pc




3) Accounting information is used by creditors to decide whether to invest in a company's stock.
pc pc pc pc pc pc pc pc pc pc pc pc pc pc




Answer: FALSE p c p c


Explanation:
Creditors lend money to a company. pc pc pc pc pc


Difficulty: 1 Easy
pc pc pc


Topic: Defining Accounting pc


Learning Objective: 01- pc


01 Describe the two primary functions of financial accounting. Bloom's:
pc pc pc pc pc pc pc pc pc


Remember
AACSB:
Reflective Thinking pc pc


AICPA: BB Critical Thinking pc pc




4) The primary functions of financial accounting are to measure business activities of a compan
pc pc pc pc pc pc pc pc pc pc pc pc pc


y and to communicate those measurements to internal parties for decision-making purposes.
pc pc pc pc pc pc pc pc pc pc pc




Answer: FALSE p c p c


Explanation:

, Financial accounting primarily serves to provide information to external parties
pc pc pc pc pc pc pc pc pc


. Difficulty: 2 Medium
pc pc pc


Topic: Defining Accounting
pc


Learning Objective: 01-01 Describe the two primary functions of financial accounting.
pc pc pc pc pc pc pc pc pc