TEST BANK t
Financial Accounting, 6th Edition
t t t
Chapters 1 – 12 Complete
t t t t
By David Spiceland, Wayne Thomas and Don Herrmann
t t t t t t t
,TABLE tOF tCONTENTS t
Chapter t1: tA tFramework tfor tFinancial tAccounting t Chapter t2: tThe
Accounting tCycle: tDuring tthe tPeriod t Chapter t3: tThe tAccounting tCycle:
t
End tof tthe tPeriod t Chapter t4: tCash tand tInternal tControls
t
Chapter t5: tReceivables tand tSales
Chapter t6: tInventory tand tCost tof tGoods tSold t Chapter t7: tLong-Term
Assets
t
Chapter t8: tCurrent tLiabilities t t Chapter t9: tLong-
Term tLiabilities t Chapter t10: tStockholders’ tEquity
t Chapter t11: tStatement tof tCash tFlows
Chapter t12: tFinancial tStatement tAnalysis
,Chapter t1 t A tFramework tfor tFinancial tAccounting
1) Accounting tis ta tsystem tof tmaintaining trecords tof ta tcompany's toperations tand tcommunicating
t that tinformation tto tdecision tmakers.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Defining tAccounting
Learning tObjective: t 01-01 tDescribe tthe ttwo tprimary tfunctions tof tfinancial taccounting.Bloom's:
t Remember
AACSB: tReflective tThinking
t AICPA: t BB tCritical tThinking
2) Accounting tinformation tis tused tby tinvestors tto tdecide twhether tto tinvest tin ta tcompany's tstock.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Defining tAccounting
Learning tObjective: t 01-01 tDescribe tthe ttwo tprimary tfunctions tof tfinancial taccounting.Bloom's:
t Remember
AACSB: tReflective tThinking
t AICPA: t BB tCritical tThinking
3) Accounting tinformation tis tused tby tcreditors tto tdecide twhether tto tinvest tin ta tcompany's tstock.
Answer: t FALSE
Explanation: tCreditors tlend tmoney tto ta tcompany.
t Difficulty: t1 tEasy
Topic: t Defining tAccounting
Learning tObjective: t 01-01 tDescribe tthe ttwo tprimary tfunctions tof tfinancial taccounting.Bloom's:
t Remember
AACSB: tReflective tThinking
t AICPA: t BB tCritical tThinking
4) The tprimary tfunctions tof tfinancial taccounting tare tto tmeasure tbusiness tactivities tof ta
tcompany t and tto tcommunicate tthose tmeasurements tto tinternal tparties tfor tdecision-making
tpurposes.
Answer: t FALSE
Explanation: tFinancial taccounting tprimarily tserves tto tprovide tinformation tto texternal tparties.
t Difficulty: t2 tMedium
Topic: t Defining tAccounting
Learning tObjective: t 01-01 tDescribe tthe ttwo tprimary tfunctions tof tfinancial taccounting.Bloom's:
t Understand
AACSB: tReflective tThinking
t AICPA: t BB tCritical tThinking
, 5) Financing tactivities tare ttransactions tinvolving texternal tsources tof tfunding.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Measuring tBusiness tActivities
Learning tObjective: t 01-02 tUnderstand tthe tbusiness tactivities tthat tfinancial
taccountingmeasures. t Bloom's: t t Remember tAACSB:
Reflective tThinkingAICPA: t FN
tMeasurement
6) Investing tactivities tinclude tthe tpurchase tand tsale tof tlong-term tresources.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Measuring tBusiness tActivities
Learning tObjective: t 01-02 tUnderstand tthe tbusiness tactivities tthat tfinancial
taccountingmeasures. t Bloom's: t t Remember tAACSB:
Reflective tThinkingAICPA: t FN
tMeasurement
7) Operating tactivities tinclude ttransactions tthat trelate tto tthe tprimary toperations tof tthe tcompany.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Measuring tBusiness tActivities
Learning tObjective: t 01-02 tUnderstand tthe tbusiness tactivities tthat tfinancial
taccountingmeasures. t Bloom's: t t Remember tAACSB:
Reflective tThinkingAICPA: t FN
tMeasurement
8) A tcorporation tis tan tentity tthat tis tlegally tseparate tfrom tits towners.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Measuring tBusiness tActivities
Learning tObjective: t 01-02 tUnderstand tthe tbusiness tactivities tthat tfinancial
taccountingmeasures. t Bloom's: t t Remember tAACSB:
Reflective tThinkingAICPA: t BB
tCritical tThinking
Financial Accounting, 6th Edition
t t t
Chapters 1 – 12 Complete
t t t t
By David Spiceland, Wayne Thomas and Don Herrmann
t t t t t t t
,TABLE tOF tCONTENTS t
Chapter t1: tA tFramework tfor tFinancial tAccounting t Chapter t2: tThe
Accounting tCycle: tDuring tthe tPeriod t Chapter t3: tThe tAccounting tCycle:
t
End tof tthe tPeriod t Chapter t4: tCash tand tInternal tControls
t
Chapter t5: tReceivables tand tSales
Chapter t6: tInventory tand tCost tof tGoods tSold t Chapter t7: tLong-Term
Assets
t
Chapter t8: tCurrent tLiabilities t t Chapter t9: tLong-
Term tLiabilities t Chapter t10: tStockholders’ tEquity
t Chapter t11: tStatement tof tCash tFlows
Chapter t12: tFinancial tStatement tAnalysis
,Chapter t1 t A tFramework tfor tFinancial tAccounting
1) Accounting tis ta tsystem tof tmaintaining trecords tof ta tcompany's toperations tand tcommunicating
t that tinformation tto tdecision tmakers.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Defining tAccounting
Learning tObjective: t 01-01 tDescribe tthe ttwo tprimary tfunctions tof tfinancial taccounting.Bloom's:
t Remember
AACSB: tReflective tThinking
t AICPA: t BB tCritical tThinking
2) Accounting tinformation tis tused tby tinvestors tto tdecide twhether tto tinvest tin ta tcompany's tstock.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Defining tAccounting
Learning tObjective: t 01-01 tDescribe tthe ttwo tprimary tfunctions tof tfinancial taccounting.Bloom's:
t Remember
AACSB: tReflective tThinking
t AICPA: t BB tCritical tThinking
3) Accounting tinformation tis tused tby tcreditors tto tdecide twhether tto tinvest tin ta tcompany's tstock.
Answer: t FALSE
Explanation: tCreditors tlend tmoney tto ta tcompany.
t Difficulty: t1 tEasy
Topic: t Defining tAccounting
Learning tObjective: t 01-01 tDescribe tthe ttwo tprimary tfunctions tof tfinancial taccounting.Bloom's:
t Remember
AACSB: tReflective tThinking
t AICPA: t BB tCritical tThinking
4) The tprimary tfunctions tof tfinancial taccounting tare tto tmeasure tbusiness tactivities tof ta
tcompany t and tto tcommunicate tthose tmeasurements tto tinternal tparties tfor tdecision-making
tpurposes.
Answer: t FALSE
Explanation: tFinancial taccounting tprimarily tserves tto tprovide tinformation tto texternal tparties.
t Difficulty: t2 tMedium
Topic: t Defining tAccounting
Learning tObjective: t 01-01 tDescribe tthe ttwo tprimary tfunctions tof tfinancial taccounting.Bloom's:
t Understand
AACSB: tReflective tThinking
t AICPA: t BB tCritical tThinking
, 5) Financing tactivities tare ttransactions tinvolving texternal tsources tof tfunding.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Measuring tBusiness tActivities
Learning tObjective: t 01-02 tUnderstand tthe tbusiness tactivities tthat tfinancial
taccountingmeasures. t Bloom's: t t Remember tAACSB:
Reflective tThinkingAICPA: t FN
tMeasurement
6) Investing tactivities tinclude tthe tpurchase tand tsale tof tlong-term tresources.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Measuring tBusiness tActivities
Learning tObjective: t 01-02 tUnderstand tthe tbusiness tactivities tthat tfinancial
taccountingmeasures. t Bloom's: t t Remember tAACSB:
Reflective tThinkingAICPA: t FN
tMeasurement
7) Operating tactivities tinclude ttransactions tthat trelate tto tthe tprimary toperations tof tthe tcompany.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Measuring tBusiness tActivities
Learning tObjective: t 01-02 tUnderstand tthe tbusiness tactivities tthat tfinancial
taccountingmeasures. t Bloom's: t t Remember tAACSB:
Reflective tThinkingAICPA: t FN
tMeasurement
8) A tcorporation tis tan tentity tthat tis tlegally tseparate tfrom tits towners.
Answer: tTRUE
t Difficulty: t1 tEasy
Topic: t Measuring tBusiness tActivities
Learning tObjective: t 01-02 tUnderstand tthe tbusiness tactivities tthat tfinancial
taccountingmeasures. t Bloom's: t t Remember tAACSB:
Reflective tThinkingAICPA: t BB
tCritical tThinking
