Test Bank For Intermediate Accounting, 11th Edition by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer

TestBankForIntermediateAccounting,
c c c c c




11thEdition
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by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
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Version1 c 1

,Answer Key c




Test name: chapter 1
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1)
c




TERM PHRASE Term number c




that matches
c c




the phrase.
c c




1.Predictive va
c c lue Information is useful in c c c 1
projecting cash flows. c c




2. Relevance
c
Pertinent to the decision at c c c c 2
hand.
3. Distribution
c to Information is available prior c c c 5
owners to the decision.
c c




4. Confirmatory
c Decrease in equity due to c c c c 3
value transfers to owners.
c c c




5. Timeliness
c
Information confirms c 4
expectations.
2)
TERM PHRASE Term number c




thatmatches
c c




the phrase.c




1. Gain
c Along with relevance, a
c c c 5
fundamental decision-specific c




quality.
c




2. Materiality
c
Results if an asset is sold
c c c c c for 1
more than book value.
c c c




3. Completeness
c
Contains all information c c 3
necessary for faithful c c




representation.
4.Comprehensive
c The change in equity from
c c c c 4
income nonowner transactions. c




Version1 c 2

, 5. Faithful
c Concerns the decision-making c c 2
representation
c impact of both the amount and
c c c c c




nature of an item.
c c c c




3)
TERM PHRASE Term number c




that matches
c c




the phrase.
c c




1. Neutrality Important in analysis between c c c 2
firms.
2. Comparability Accounting information should c c 1
be unbiased.
c




3. Consistency The decision to include an
c c c c 5
amount in the financial c c c




statements.
c




4. Cost-effectiveness c Applying the same accounting c c c 3
practices over time. c c




5. Recognition Considers the value of using c c c c 4
information relative to cost of c c c c




providing it.
c c




4)
TERM PHRASE Term number c




that matches
c c




the phrase.
c c




1. Monetary unitc Implies consensus among c c 2
assumption
c different observers. c




2. Verifiability Assumes all transactions can be c c c c 3
identified with a particular c c c




entity.
c




3. Economic entity
c Assumes an entity will continue c c c c 4
assumption
c to operate indefinitely.
c c




4. Going concern
c Requires reporting the c c 5
assumption
c financial life of an entity in c c c c c




discrete time frames.
c c c




5. Periodicity Ignores the possibility of c c c 1
assumption
c inflation.
5)
TERM PHRASE Term number c




that matches c




the phrase.
c




1. Historical
c cost Basis of measurement for fixed
c c c c 1


Version1 c 3

, assets.
2. Materiality Discounts future cash flows. c c c 5
3. Revenue Occurs when goods or services c c c c 3
recognitio
c are transferred to the
c c c




n customer.
c




4. Full disclosure
c Reporting of all information c c c 4
that could affect decisions.
c c c




5. Present value c Application of GAAP sometimes c c c 2
avoided under this constraint. c c c




6)
TERM PHRASE Term number c




that matches
c c




the phrase.
c c




1. Financial Undermines representational c 3
Accounting Standards
c c faithfulness by being c c




Board
c inconsistent with neutrality.
c c c




2. Accounting It established GAAP before the
c c c c 2
PrinciplesBoard
c c FASB.
3. Conservatism Its EITF Issues are GAAP when
c c c c c 1
entered in the Accounting c c c




Standards Codification.
c c




4. American It has the authority to set U.S.
c c c c c c 5
Institute of CPAs
c c c accounting standards. c




(AICPA)
c




5. Securities and c It is the national organization
c c c c 4
ExchangeCommission
c c for CPAs in the United States.
c c c c c




7)
TERM PHRASE Term number c




that matches
c




the phrase.
c




1. Expenses
c Net assets. c 2
2. Equity
c Outflows of resources c c to 1
generate revenues.
c c




3. Distributions to
c Cash dividends. c 3
owners
4. Investments by c Claims of creditors against c c c 5
owners
c the assets of a business.
c c c c




5. Liabilities Transfers of resources in c c c 4
exchange for common and c c c




preferred stock.
c c




Version1 c 4