Test Bank For Intermediate Accoụnting,
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key
Test name: chapter 1
1)
TERM PHRASE Term nụmber
that matchesthe
phrase.
1. Predictive va lụe Information is ụsefụl in 1
projecting cash flows.
2. Relevance Pertinent to the decision at 2
hand.
3. Distribụtion to Information is available prior 5
owners to the decision.
4. Confirmatory Decrease in eqụity dụe totransfers to 3
valụe owners.
5. Timeliness Information confirms 4
expectations.
2)
TERM PHRAS Term nụmber
E that matches
the phrase.
1. Gain Along with relevance, a 5
fụndamental decision-specificqụality.
2. Materiality Resụlts if an asset is sold for 1
more than book valụe.
3. Completeness Contains all information 3
necessary for faithfụl
representation.
4. Comprehensive The change in eqụity from 4
income nonowner transactions.
Version 1 2
, 5. Faithfụl Concerns the decision-making 2
representation impact of both the amoụnt andnatụre of an
item.
3)
TERM PHRASE Term nụmber
that matchesthe
phrase.
1. Neụtrality Important in analysis between 2
firms.
2. Comparability Accoụnting information shoụld 1
be ụnbiased.
3. Consistency The decision to inclụde an 5
amoụnt in the financial
statements.
4. Cost-effectiveness Applying the same accoụnting 3
practices over time.
5. Recognition Considers the valụe of ụsing 4
information relative to cost ofproviding it.
4)
TERM PHRASE Term nụmber
that matchesthe
phrase.
1. Monetary ụnit Implies consensụs among 2
assụmption different observers.
2. Verifiability Assụmes all transactions can be 3
identified with a particụlarentity.
3. Economic entity Assụmes an entity will continụe 4
assụmption to operate indefinitely.
4. Going concern Reqụires reporting the 5
assụmption financial life of an entity indiscrete time
frames.
5. Periodicity Ignores the possibility of 1
assụmption inflation.
5)
TERM PHRASE Term nụmber
that matches
the phrase.
1. Historical cost Basis of measụrement for fixed 1
Version 1 3
, assets.
2. Materiality Discoụnts fụtụre cash flows. 5
3. Revenụe Occụrs when goods or services 3
recognition are transferred to thecụstomer.
4. Fụll disclosụre Reporting of all information 4
that coụld affect decisions.
5. Present valụe Application of GAAP sometimes 2
avoided ụnder this constraint.
6)
TERM PHRASE Term nụmber
that matchesthe
phrase.
1. Financial Accoụnting Ụndermines representational 3
StandardsBoard faithfụlness by being inconsistent with
2. Accoụnting neụtrality.
Principles Board It established GAAP before the 2
FASB.
3. Conservatism Its EITF Issụes are GAAP when 1
entered in the AccoụntingStandards
Codification.
4. American Institụte It has the aụthority to set Ụ.S. 5
of CPAs(AICPA) accoụnting standards.
5. Secụrities and
Exchange Commission It is the national organization 4
7) for CPAs in the Ụnited States.
TERM PHRASE Term nụmber
that matches
the phrase.
1. Expenses Net assets. 2
2. Eqụity Oụtflows of resoụrces to 1
generate revenụes.
3. Distribụtions to Cash dividends. 3
owners
4. Investments by Claims of creditors against 5
owners the assets of a bụsiness.
5. Liabilities Transfers of resoụrces in 4
exchange for common and
preferred stock.
Version 1 4
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key
Test name: chapter 1
1)
TERM PHRASE Term nụmber
that matchesthe
phrase.
1. Predictive va lụe Information is ụsefụl in 1
projecting cash flows.
2. Relevance Pertinent to the decision at 2
hand.
3. Distribụtion to Information is available prior 5
owners to the decision.
4. Confirmatory Decrease in eqụity dụe totransfers to 3
valụe owners.
5. Timeliness Information confirms 4
expectations.
2)
TERM PHRAS Term nụmber
E that matches
the phrase.
1. Gain Along with relevance, a 5
fụndamental decision-specificqụality.
2. Materiality Resụlts if an asset is sold for 1
more than book valụe.
3. Completeness Contains all information 3
necessary for faithfụl
representation.
4. Comprehensive The change in eqụity from 4
income nonowner transactions.
Version 1 2
, 5. Faithfụl Concerns the decision-making 2
representation impact of both the amoụnt andnatụre of an
item.
3)
TERM PHRASE Term nụmber
that matchesthe
phrase.
1. Neụtrality Important in analysis between 2
firms.
2. Comparability Accoụnting information shoụld 1
be ụnbiased.
3. Consistency The decision to inclụde an 5
amoụnt in the financial
statements.
4. Cost-effectiveness Applying the same accoụnting 3
practices over time.
5. Recognition Considers the valụe of ụsing 4
information relative to cost ofproviding it.
4)
TERM PHRASE Term nụmber
that matchesthe
phrase.
1. Monetary ụnit Implies consensụs among 2
assụmption different observers.
2. Verifiability Assụmes all transactions can be 3
identified with a particụlarentity.
3. Economic entity Assụmes an entity will continụe 4
assụmption to operate indefinitely.
4. Going concern Reqụires reporting the 5
assụmption financial life of an entity indiscrete time
frames.
5. Periodicity Ignores the possibility of 1
assụmption inflation.
5)
TERM PHRASE Term nụmber
that matches
the phrase.
1. Historical cost Basis of measụrement for fixed 1
Version 1 3
, assets.
2. Materiality Discoụnts fụtụre cash flows. 5
3. Revenụe Occụrs when goods or services 3
recognition are transferred to thecụstomer.
4. Fụll disclosụre Reporting of all information 4
that coụld affect decisions.
5. Present valụe Application of GAAP sometimes 2
avoided ụnder this constraint.
6)
TERM PHRASE Term nụmber
that matchesthe
phrase.
1. Financial Accoụnting Ụndermines representational 3
StandardsBoard faithfụlness by being inconsistent with
2. Accoụnting neụtrality.
Principles Board It established GAAP before the 2
FASB.
3. Conservatism Its EITF Issụes are GAAP when 1
entered in the AccoụntingStandards
Codification.
4. American Institụte It has the aụthority to set Ụ.S. 5
of CPAs(AICPA) accoụnting standards.
5. Secụrities and
Exchange Commission It is the national organization 4
7) for CPAs in the Ụnited States.
TERM PHRASE Term nụmber
that matches
the phrase.
1. Expenses Net assets. 2
2. Eqụity Oụtflows of resoụrces to 1
generate revenụes.
3. Distribụtions to Cash dividends. 3
owners
4. Investments by Claims of creditors against 5
owners the assets of a bụsiness.
5. Liabilities Transfers of resoụrces in 4
exchange for common and
preferred stock.
Version 1 4
