,
,TEST BANK FOR r1 r1
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herr
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
mann
Chapter 1 r1 A Framework for Financial Accounting
r1 r1 r1 r1
1) Accounting is a system of maintaining records of a company's operations and communicating
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r
that information to decision makers.
1 r1 r1 r1 r1
Answer: TRUE Dif r 1 r1
ficulty: 1 Easy r1 r1
Topic: Defining Accounting r1
Learning Objective: 01- r1
01 Describe the two primary functions of financial accounting. Bloom's:
r1 r1 r1 r1 r1 r1 r1 r1 r1
Remember
AACSB:
Reflective Thinking r1 r1
AICPA: BB Critical Thinking r1 r1
2) Accounting information is used by investors to decide whether to invest in a company's stock.
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
Answer: TRUE Dif r 1 r1
ficulty: 1 Easy r1 r1
Topic: Defining Accounting r1
Learning Objective: 01- r1
01 Describe the two primary functions of financial accounting. Bloom's:
r1 r1 r1 r1 r1 r1 r1 r1 r1
Remember
AACSB:
Reflective Thinking r1 r1
AICPA: BB Critical Thinking r1 r1
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
Answer: FALSE r 1 r 1
Explanation:
Creditors lend money to a company. r1 r1 r1 r1 r1 r1
Difficulty: 1 Easy r1 r1
Topic: Defining Accounting r1
Learning Objective: 01- r1
01 Describe the two primary functions of financial accounting. Bloom's:
r1 r1 r1 r1 r1 r1 r1 r1 r1
Remember
AACSB:
Reflective Thinking r1 r1
AICPA: BB Critical Thinking r1 r1
4) The primary functions of financial accounting are to measure business activities of a company
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
and to communicate those measurements to internal parties for decision-making purposes.
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
Answer: FALSE r 1 r 1
Explanation:
, Financial accounting primarily serves to provide information to external parties.
r1 r1 r1 r1 r1 r1 r1 r1 r1 r
Difficulty: 2 Medium
1 r1 r1
Topic: Defining Accounting
r1
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
r1 r1 r1 r1 r1 r1 r1 r1 r1
,TEST BANK FOR r1 r1
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herr
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
mann
Chapter 1 r1 A Framework for Financial Accounting
r1 r1 r1 r1
1) Accounting is a system of maintaining records of a company's operations and communicating
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r
that information to decision makers.
1 r1 r1 r1 r1
Answer: TRUE Dif r 1 r1
ficulty: 1 Easy r1 r1
Topic: Defining Accounting r1
Learning Objective: 01- r1
01 Describe the two primary functions of financial accounting. Bloom's:
r1 r1 r1 r1 r1 r1 r1 r1 r1
Remember
AACSB:
Reflective Thinking r1 r1
AICPA: BB Critical Thinking r1 r1
2) Accounting information is used by investors to decide whether to invest in a company's stock.
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
Answer: TRUE Dif r 1 r1
ficulty: 1 Easy r1 r1
Topic: Defining Accounting r1
Learning Objective: 01- r1
01 Describe the two primary functions of financial accounting. Bloom's:
r1 r1 r1 r1 r1 r1 r1 r1 r1
Remember
AACSB:
Reflective Thinking r1 r1
AICPA: BB Critical Thinking r1 r1
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
Answer: FALSE r 1 r 1
Explanation:
Creditors lend money to a company. r1 r1 r1 r1 r1 r1
Difficulty: 1 Easy r1 r1
Topic: Defining Accounting r1
Learning Objective: 01- r1
01 Describe the two primary functions of financial accounting. Bloom's:
r1 r1 r1 r1 r1 r1 r1 r1 r1
Remember
AACSB:
Reflective Thinking r1 r1
AICPA: BB Critical Thinking r1 r1
4) The primary functions of financial accounting are to measure business activities of a company
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
and to communicate those measurements to internal parties for decision-making purposes.
r1 r1 r1 r1 r1 r1 r1 r1 r1 r1 r1
Answer: FALSE r 1 r 1
Explanation:
, Financial accounting primarily serves to provide information to external parties.
r1 r1 r1 r1 r1 r1 r1 r1 r1 r
Difficulty: 2 Medium
1 r1 r1
Topic: Defining Accounting
r1
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
r1 r1 r1 r1 r1 r1 r1 r1 r1
