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J. David Spiceland, Wayne Thomas, Don Herrmann Financial Accounting

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Uploaded on: March 6, 2025
Number of pages: 33
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test bank financial accounting 6th edition by sp

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TEST BANK f

FinancialAccounting,6thEdition
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Chapters1–12Complete f f f f

ByDavidSpiceland,WayneThomasandDonHerrmann
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, Stuvia.com - The Marketplace to Buy and Sell your Study Material
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TABLE OF CONTENTS
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Chapter 1: A Framework for Financial Accounting Chapter 2: The
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f Accounting Cycle: During the Period Chapter 3: The Accounting
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Cycle: End of the Period 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 Chapter7: Long- Term
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Assets
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Chapter 8: Current Liabilities Chapter 9:
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f Long-Term Liabilities Chapter 10: f f f

Stockholders’ Equity Chapter 11: Statement
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f 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
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fcommunicating that information to decision makers. f f f f

Answer: TRUE f

Difficulty: 1 Easy
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Topic: Defining Accounting f

Learning Objective: 01-01 Describe the two primary functions of financial
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faccounting.Bloom's: Remember
AACSB: Reflective Thinking
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fAICPA: BB Critical f

fThinking

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

Difficulty: 1 Easy
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Topic: Defining Accounting f

Learning Objective: 01-01 Describe the two primary functions of financial
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faccounting.Bloom's: Remember
AACSB: Reflective Thinking
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fAICPA: BB Critical f

fThinking

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

fcompany. Difficulty: 1 Easy f f f

Topic: Defining Accounting f

Learning Objective: 01-01 Describe the two primary functions of financial
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faccounting.Bloom's: Remember
AACSB: Reflective Thinking
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fAICPA: BB Critical f

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4) The primary functions of financial accounting are to measure business activities of a
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fcompany and to communicate those measurements to internal parties for decision-making
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fpurposes.

Answer: FALSE
Explanation: Financial accounting primarily serves to provide information to external
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fparties. Difficulty: 2 Medium f f

Topic: Defining Accounting f

Learning Objective: 01-01 Describe the two primary functions of financial
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faccounting.Bloom's: Understand
AACSB: Reflective Thinking
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AICPA: BB Critical
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