TEST BANK m
Financial Accounting, 6th Edition
m m m m
Chapters 1 – 12 Complete
m m m m
By David Spiceland, Wayne Thomas and Don Herrmann
m m m m m m m
,TABLE OF CONTENTS
m m m
Chapter 1: A Framework for Financial Accounting
m m m m m m
Chapter 2: The Accounting Cycle: During the Period
m m m m m m m
Chapter 3: The Accounting Cycle: End of the Period
m m m m m m m m
Chapter 4: Cash and Internal Controls
m m m m m
Chapter 5: Receivables and Sales
m m m m
Chapter 6: Inventory and Cost of Goods Sold
m m m m m m m
Chapter 7: Long-Term Assets
m m m
Chapter 8: Current Liabilities
m m m
Chapter 9: Long-Term Liabilities
m m m
Chapter 10: Stockholders’ Equity
m m m
Chapter 11: Statement of Cash Flows
m m m m m
Chapter 12: Financial Statement Analysis
m m m m
,Chapterm1m AmFrameworkmformFinancialmAccounting
1) Accountingmismamsystemmofmmaintainingmrecordsmofmamcompany'smoperationsmandmcommunicatingmt
hatminformationmtomdecisionmmakers.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m DefiningmAccounting
LearningmObjective:m 01-
01mDescribemthemtwomprimarymfunctionsmofmfinancialmaccounting.mBloom's:mRemember
AACSB:mReflectivemThinkingmA
ICPA:m BBmCriticalmThinking
2) Accountingminformationmismusedmbyminvestorsmtomdecidemwhethermtominvestminmamcompany'smstock.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m DefiningmAccounting
LearningmObjective:m 01-
01mDescribemthemtwomprimarymfunctionsmofmfinancialmaccounting.mBloom's:mRemember
AACSB:mReflectivemThinkingmA
ICPA:m BBmCriticalmThinking
3) Accountingminformationmismusedmbymcreditorsmtomdecidemwhethermtominvestminmamcompany'smstock.
Answer:m FALSE
Explanation:mCreditorsmlendmmoneymtomamcompany.mDi
fficulty:m1mEasy
Topic:m DefiningmAccounting
LearningmObjective:m 01-
01mDescribemthemtwomprimarymfunctionsmofmfinancialmaccounting.mBloom's:mRemember
AACSB:mReflectivemThinkingmA
ICPA:m BBmCriticalmThinking
4) Themprimarymfunctionsmofmfinancialmaccountingmaremtommeasurembusinessmactivitiesmofmamcompanym
andmtomcommunicatemthosemmeasurementsmtominternalmpartiesmformdecision-makingmpurposes.
Answer:m FALSE
Explanation:mFinancialmaccountingmprimarilymservesmtomprovideminformationmtomexternalmparties.mDiff
iculty:m2mMedium
Topic:m DefiningmAccounting
LearningmObjective:m 01-
01mDescribemthemtwomprimarymfunctionsmofmfinancialmaccounting.mBloom's:mUnderstand
AACSB:mReflectivemThinkingmA
ICPA:m BBmCriticalmThinking
, 5) Financingmactivitiesmaremtransactionsminvolvingmexternalmsourcesmofmfunding.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m MeasuringmBusinessmActivities
LearningmObjective:m 01-02mUnderstandmthembusinessmactivitiesmthatmfinancialmaccountingmmeasures.
Bloom's:m RemembermAACSB:
m ReflectivemThinkingm
AICPA:m
FNmMeasurement
6) Investingmactivitiesmincludemthempurchasemandmsalemofmlong-termmresources.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m MeasuringmBusinessmActivities
LearningmObjective:m 01-02mUnderstandmthembusinessmactivitiesmthatmfinancialmaccountingmmeasures.
Bloom's:m RemembermAACSB:
m ReflectivemThinkingm
AICPA:m
FNmMeasurement
7) Operatingmactivitiesmincludemtransactionsmthatmrelatemtomthemprimarymoperationsmofmthemcompany.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m MeasuringmBusinessmActivities
LearningmObjective:m 01-02mUnderstandmthembusinessmactivitiesmthatmfinancialmaccountingmmeasures.
Bloom's:m RemembermAACSB:
m ReflectivemThinkingm
AICPA:m
FNmMeasurement
8) Amcorporationmismanmentitymthatmismlegallymseparatemfrommitsmowners.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m MeasuringmBusinessmActivities
LearningmObjective:m 01-02mUnderstandmthembusinessmactivitiesmthatmfinancialmaccountingmmeasures.
Bloom's:mmmRemembermAACSB:
mReflectivemThinkingm
AICPA:m
BBmCriticalmThinking
Financial Accounting, 6th Edition
m m m m
Chapters 1 – 12 Complete
m m m m
By David Spiceland, Wayne Thomas and Don Herrmann
m m m m m m m
,TABLE OF CONTENTS
m m m
Chapter 1: A Framework for Financial Accounting
m m m m m m
Chapter 2: The Accounting Cycle: During the Period
m m m m m m m
Chapter 3: The Accounting Cycle: End of the Period
m m m m m m m m
Chapter 4: Cash and Internal Controls
m m m m m
Chapter 5: Receivables and Sales
m m m m
Chapter 6: Inventory and Cost of Goods Sold
m m m m m m m
Chapter 7: Long-Term Assets
m m m
Chapter 8: Current Liabilities
m m m
Chapter 9: Long-Term Liabilities
m m m
Chapter 10: Stockholders’ Equity
m m m
Chapter 11: Statement of Cash Flows
m m m m m
Chapter 12: Financial Statement Analysis
m m m m
,Chapterm1m AmFrameworkmformFinancialmAccounting
1) Accountingmismamsystemmofmmaintainingmrecordsmofmamcompany'smoperationsmandmcommunicatingmt
hatminformationmtomdecisionmmakers.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m DefiningmAccounting
LearningmObjective:m 01-
01mDescribemthemtwomprimarymfunctionsmofmfinancialmaccounting.mBloom's:mRemember
AACSB:mReflectivemThinkingmA
ICPA:m BBmCriticalmThinking
2) Accountingminformationmismusedmbyminvestorsmtomdecidemwhethermtominvestminmamcompany'smstock.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m DefiningmAccounting
LearningmObjective:m 01-
01mDescribemthemtwomprimarymfunctionsmofmfinancialmaccounting.mBloom's:mRemember
AACSB:mReflectivemThinkingmA
ICPA:m BBmCriticalmThinking
3) Accountingminformationmismusedmbymcreditorsmtomdecidemwhethermtominvestminmamcompany'smstock.
Answer:m FALSE
Explanation:mCreditorsmlendmmoneymtomamcompany.mDi
fficulty:m1mEasy
Topic:m DefiningmAccounting
LearningmObjective:m 01-
01mDescribemthemtwomprimarymfunctionsmofmfinancialmaccounting.mBloom's:mRemember
AACSB:mReflectivemThinkingmA
ICPA:m BBmCriticalmThinking
4) Themprimarymfunctionsmofmfinancialmaccountingmaremtommeasurembusinessmactivitiesmofmamcompanym
andmtomcommunicatemthosemmeasurementsmtominternalmpartiesmformdecision-makingmpurposes.
Answer:m FALSE
Explanation:mFinancialmaccountingmprimarilymservesmtomprovideminformationmtomexternalmparties.mDiff
iculty:m2mMedium
Topic:m DefiningmAccounting
LearningmObjective:m 01-
01mDescribemthemtwomprimarymfunctionsmofmfinancialmaccounting.mBloom's:mUnderstand
AACSB:mReflectivemThinkingmA
ICPA:m BBmCriticalmThinking
, 5) Financingmactivitiesmaremtransactionsminvolvingmexternalmsourcesmofmfunding.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m MeasuringmBusinessmActivities
LearningmObjective:m 01-02mUnderstandmthembusinessmactivitiesmthatmfinancialmaccountingmmeasures.
Bloom's:m RemembermAACSB:
m ReflectivemThinkingm
AICPA:m
FNmMeasurement
6) Investingmactivitiesmincludemthempurchasemandmsalemofmlong-termmresources.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m MeasuringmBusinessmActivities
LearningmObjective:m 01-02mUnderstandmthembusinessmactivitiesmthatmfinancialmaccountingmmeasures.
Bloom's:m RemembermAACSB:
m ReflectivemThinkingm
AICPA:m
FNmMeasurement
7) Operatingmactivitiesmincludemtransactionsmthatmrelatemtomthemprimarymoperationsmofmthemcompany.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m MeasuringmBusinessmActivities
LearningmObjective:m 01-02mUnderstandmthembusinessmactivitiesmthatmfinancialmaccountingmmeasures.
Bloom's:m RemembermAACSB:
m ReflectivemThinkingm
AICPA:m
FNmMeasurement
8) Amcorporationmismanmentitymthatmismlegallymseparatemfrommitsmowners.
Answer:mTRUEm
Difficulty:m1mEasy
Topic:m MeasuringmBusinessmActivities
LearningmObjective:m 01-02mUnderstandmthembusinessmactivitiesmthatmfinancialmaccountingmmeasures.
Bloom's:mmmRemembermAACSB:
mReflectivemThinkingm
AICPA:m
BBmCriticalmThinking
