,TEST BANK FOR sx sx
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herr
sx sx sx sx sx sx sx sx sx sx
mann
Chapter 1 sx A Framework for Financial Accounting
sx sx sx sx
1) Accounting is a system of maintaining records of a company's operations and communicatin
sx sx sx sx sx sx sx sx sx sx sx sx
g that information to decision makers.
sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy sx sx
Topic: Defining Accounting sx
Learning Objective: 01- sx
01 Describe the two primary functions of financial accounting. Bloom's:
sx sx sx sx sx sx sx sx sx
Remember
AACSB:
Reflective Thinking sx sx
AICPA: BB Critical Thinking sx sx
2) Accounting information is used by investors to decide whether to invest in a company's stock.
sx sx sx sx sx sx sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy sx sx
Topic: Defining Accounting sx
Learning Objective: 01- sx
01 Describe the two primary functions of financial accounting. Bloom's:
sx sx sx sx sx sx sx sx sx
Remember
AACSB:
Reflective Thinking sx sx
AICPA: BB Critical Thinking sx sx
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
sx sx sx sx sx sx sx sx sx sx sx sx sx sx
Answer: FALSE s x s x
Explanation:
Creditors lend money to a company. sx sx sx sx sx s
Difficulty: 1 Easy
x sx sx
Topic: Defining Accounting sx
Learning Objective: 01- sx
01 Describe the two primary functions of financial accounting. Bloom's:
sx sx sx sx sx sx sx sx sx
Remember
AACSB:
Reflective Thinking sx sx
AICPA: BB Critical Thinking sx sx
4) The primary functions of financial accounting are to measure business activities of a compan
sx sx sx sx sx sx sx sx sx sx sx sx sx
y and to communicate those measurements to internal parties for decision-making purposes.
sx sx sx sx sx sx sx sx sx sx sx
Answer: FALSE s x s x
Explanation:
, Financial accounting primarily serves to provide information to external parties.
sx sx sx sx sx sx sx sx sx
Difficulty: 2 Medium
sx sx sx
Topic: Defining Accounting
sx
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
sx sx sx sx sx sx sx sx sx
, Bloom's:
Understand AACSB: sx
Reflective Thinking sx sx sx
AICPA: BB Critical Thinking sx sx
5) Financing activities are transactions involving external sources of funding.
sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy
sx sx
Topic: Measuring Business Activities sx sx
Learning Objective: 01-
sx
02 Understand the business activities that financial accounting measures. Bloom's:
sx sx sx sx sx sx sx sx sx Remember
AACSB:
Reflective Thinking sx sx
AICPA: FN Measurement sx
6) Investing activities include the purchase and sale of long-term resources.
sx sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy
sx sx
Topic: Measuring Business Activities sx sx
Learning Objective: 01-
sx
02 Understand the business activities that financial accounting measures. Bloom's:
sx sx sx sx sx sx sx sx sx Remember
AACSB:
Reflective Thinking sx sx
AICPA: FN Measurement sx
7) Operating activities include transactions that relate to the primary operations of the company.
sx sx sx sx sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy
sx sx
Topic: Measuring Business Activities sx sx
Learning Objective: 01-
sx
02 Understand the business activities that financial accounting measures. Bloom's:
sx sx sx sx sx sx sx sx sx Remember
AACSB:
Reflective Thinking sx sx
AICPA: FN Measurement sx
8) A corporation is an entity that is legally separate from its owners.
sx sx sx sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy
sx sx
Topic: Measuring Business Activities sx sx
Learning Objective: 01-
sx
02 Understand the business activities that financial accounting measures. Bloom's:
sx sx sx sx sx sx sx sx sx Remember
AACSB:
Reflective Thinking sx sx
AICPA: BB Critical Thinking sx sx
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herr
sx sx sx sx sx sx sx sx sx sx
mann
Chapter 1 sx A Framework for Financial Accounting
sx sx sx sx
1) Accounting is a system of maintaining records of a company's operations and communicatin
sx sx sx sx sx sx sx sx sx sx sx sx
g that information to decision makers.
sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy sx sx
Topic: Defining Accounting sx
Learning Objective: 01- sx
01 Describe the two primary functions of financial accounting. Bloom's:
sx sx sx sx sx sx sx sx sx
Remember
AACSB:
Reflective Thinking sx sx
AICPA: BB Critical Thinking sx sx
2) Accounting information is used by investors to decide whether to invest in a company's stock.
sx sx sx sx sx sx sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy sx sx
Topic: Defining Accounting sx
Learning Objective: 01- sx
01 Describe the two primary functions of financial accounting. Bloom's:
sx sx sx sx sx sx sx sx sx
Remember
AACSB:
Reflective Thinking sx sx
AICPA: BB Critical Thinking sx sx
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
sx sx sx sx sx sx sx sx sx sx sx sx sx sx
Answer: FALSE s x s x
Explanation:
Creditors lend money to a company. sx sx sx sx sx s
Difficulty: 1 Easy
x sx sx
Topic: Defining Accounting sx
Learning Objective: 01- sx
01 Describe the two primary functions of financial accounting. Bloom's:
sx sx sx sx sx sx sx sx sx
Remember
AACSB:
Reflective Thinking sx sx
AICPA: BB Critical Thinking sx sx
4) The primary functions of financial accounting are to measure business activities of a compan
sx sx sx sx sx sx sx sx sx sx sx sx sx
y and to communicate those measurements to internal parties for decision-making purposes.
sx sx sx sx sx sx sx sx sx sx sx
Answer: FALSE s x s x
Explanation:
, Financial accounting primarily serves to provide information to external parties.
sx sx sx sx sx sx sx sx sx
Difficulty: 2 Medium
sx sx sx
Topic: Defining Accounting
sx
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
sx sx sx sx sx sx sx sx sx
, Bloom's:
Understand AACSB: sx
Reflective Thinking sx sx sx
AICPA: BB Critical Thinking sx sx
5) Financing activities are transactions involving external sources of funding.
sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy
sx sx
Topic: Measuring Business Activities sx sx
Learning Objective: 01-
sx
02 Understand the business activities that financial accounting measures. Bloom's:
sx sx sx sx sx sx sx sx sx Remember
AACSB:
Reflective Thinking sx sx
AICPA: FN Measurement sx
6) Investing activities include the purchase and sale of long-term resources.
sx sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy
sx sx
Topic: Measuring Business Activities sx sx
Learning Objective: 01-
sx
02 Understand the business activities that financial accounting measures. Bloom's:
sx sx sx sx sx sx sx sx sx Remember
AACSB:
Reflective Thinking sx sx
AICPA: FN Measurement sx
7) Operating activities include transactions that relate to the primary operations of the company.
sx sx sx sx sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy
sx sx
Topic: Measuring Business Activities sx sx
Learning Objective: 01-
sx
02 Understand the business activities that financial accounting measures. Bloom's:
sx sx sx sx sx sx sx sx sx Remember
AACSB:
Reflective Thinking sx sx
AICPA: FN Measurement sx
8) A corporation is an entity that is legally separate from its owners.
sx sx sx sx sx sx sx sx sx sx sx
Answer: TRUE Dif s x sx
ficulty: 1 Easy
sx sx
Topic: Measuring Business Activities sx sx
Learning Objective: 01-
sx
02 Understand the business activities that financial accounting measures. Bloom's:
sx sx sx sx sx sx sx sx sx Remember
AACSB:
Reflective Thinking sx sx
AICPA: BB Critical Thinking sx sx
