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

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,TEST BANK FOR .: .:



Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herrma
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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 th
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at information to decision makers.
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Answer: TRUE Diff . : .:


iculty: 1 Easy .: .:


Topic: Defining Accounting .:


Learning Objective: 01- .:


01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking .: .:


AICPA: BB Critical Thinking .: .:




2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE Diff . : .:


iculty: 1 Easy .: .:


Topic: Defining Accounting .:


Learning Objective: 01- .:


01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking .: .:


AICPA: BB Critical Thinking .: .:




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


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


Difficulty: 1 Easy .: .:


Topic: Defining Accounting .:


Learning Objective: 01- .:


01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking .: .:


AICPA: BB Critical Thinking .: .:




4) The primary functions of financial accounting are to measure business activities of a company an
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d to communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE . : . :


Explanation:
Financial accounting primarily serves to provide information to external parties. D .: .: .: .: .: .: .: .: .: .:


ifficulty: 2 Medium .: .:


Topic: Defining Accounting .:

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