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

Test Bank For Intermediate Accounting,
c c c c c




11th Edition
c c




by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
c c c c c c c




Version 1
c 1

,Answer Key c




Test name: chapter
c c




11)
c c




TERM PHRASE Term
c numberthat
c


c matchesthe c


c phrase.
1. Predictive va lue
c c 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 to
c Information is available prior c c c 5
owners to the decision.
c c


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


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


c matches
the phrase.
c



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


specificquality. 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




Version 1 c 2

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


n andnature of an item.
c c c c c




3)
TERM PHRASE Term
c numberthat
c


c matchesthe c


c phrase.
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 c c


financialstatements.
c 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 c c c


ofproviding it.
c c c



4)
TERM PHRASE Term
c numberthat
c


c matchesthe c


c phrase.
1. Monetary Implies consensus among c c 2
unitassumption
c c different observers. c


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


particularentity.
c c


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


4. Going Requires reporting the c c 5
concernassumpti
c c financial life of an entity c c c c


on indiscrete time frames.
c c c c


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




Version 1 c 3

, that matches
c


the phrase.
c



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




Version 1c 4