TEST BANK sd
Financial Accounting, 6th Edition
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Chapters 1 – 12 Complete
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By David Spiceland, Wayne Thomas and Don Herrmann
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,TABLE OF CONTENTS sd sd sd
Chapter 1: A Framework for Financial Accounting
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Chapter 2: The Accounting Cycle: During the Period
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Chapter 3: The Accounting Cycle: End of the Period
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Chapter 4: Cash and Internal Controls
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Chapter 5: Receivables and Sales
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Chapter 6: Inventory and Cost of Goods Sold
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Chapter 7: Long-Term Assets
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Chapter 8: Current Liabilities
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Chapter 9: Long-Term Liabilities
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Chapter 10: Stockholders’ Equity
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Chapter 11: Statement of Cash Flows
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Chapter 12: Financial Statement Analysis
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,Chapter 1 sd s d A Framework for Financial Accounting
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1) Accounting is a system of maintaining records of a company's operations and
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communicatingthat information to decision makers.
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Answer: TRUE sd
Difficulty: 1 Easy
sd sd sd
Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial
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accounting.Bloom's: Remember
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AACSB: Reflectivesd
ThinkingAICPA: BB Critical
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Thinking
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2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE sd
Difficulty: 1 Easy
sd sd sd
Topic: Defining Accounting
s d sd
Learning Objective: 01-01 Describe the two primary functions of financial
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accounting.Bloom's: Remember
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AACSB: Reflectivesd
ThinkingAICPA: BB Critical
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Thinking
sd
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE s d
Explanation: Creditors lend money to a sd sd sd sd sd
company.Difficulty: 1 Easy
sd sd sd sd
Topic: Defining Accounting
s d sd
Learning Objective: 01-01 Describe the two primary functions of financial
sd s d sd sd sd sd sd sd sd
accounting.Bloom's: Remember
sd sd sd
AACSB: Reflectivesd
ThinkingAICPA: BB Critical
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Thinking
sd
4) The primary functions of financial accounting are to measure business activities of a
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companyand to communicate those measurements to internal parties for decision-making
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purposes.
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Answer: FALSE s d
Explanation: Financial accounting primarily serves to provide information to external
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parties.Difficulty: 2 Medium
sd sd sd sd
Topic: Defining Accounting
s d sd
Learning Objective: 01-01 Describe the two primary functions of financial
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accounting.Bloom's: Understand
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, AACSB: Reflective
sd
ThinkingAICPA: BB Critical
sd sd s d sd
Thinking
sd
Financial Accounting, 6th Edition
sd sd sd sd
Chapters 1 – 12 Complete
sd sd sd sd
By David Spiceland, Wayne Thomas and Don Herrmann
sd sd sd sd sd sd sd
,TABLE OF CONTENTS sd sd sd
Chapter 1: A Framework for Financial Accounting
sd sd sd sd sd sd
Chapter 2: The Accounting Cycle: During the Period
sd sd sd sd sd sd sd
Chapter 3: The Accounting Cycle: End of the Period
sd sd sd sd sd sd sd sd
Chapter 4: Cash and Internal Controls
sd sd sd sd sd
Chapter 5: Receivables and Sales
sd sd sd sd
Chapter 6: Inventory and Cost of Goods Sold
sd sd sd sd sd sd sd
Chapter 7: Long-Term Assets
sd sd sd
Chapter 8: Current Liabilities
sd sd sd
Chapter 9: Long-Term Liabilities
sd sd sd
Chapter 10: Stockholders’ Equity
sd sd sd
Chapter 11: Statement of Cash Flows
sd sd sd sd sd
Chapter 12: Financial Statement Analysis
sd sd sd sd
,Chapter 1 sd s d A Framework for Financial Accounting
sd sd sd sd
1) Accounting is a system of maintaining records of a company's operations and
sd sd sd sd sd sd sd sd sd sd sd
communicatingthat information to decision makers.
sd sd sd sd sd sd
Answer: TRUE sd
Difficulty: 1 Easy
sd sd sd
Topic: Defining Accounting
s d sd
Learning Objective: 01-01 Describe the two primary functions of financial
sd s d sd sd sd sd sd sd sd
accounting.Bloom's: Remember
sd sd sd
AACSB: Reflectivesd
ThinkingAICPA: BB Critical
sd sd s d sd
Thinking
sd
2) Accounting information is used by investors to decide whether to invest in a company's stock.
sd sd sd sd sd sd sd sd sd sd sd sd sd sd
Answer: TRUE sd
Difficulty: 1 Easy
sd sd sd
Topic: Defining Accounting
s d sd
Learning Objective: 01-01 Describe the two primary functions of financial
sd s d sd sd sd sd sd sd sd
accounting.Bloom's: Remember
sd sd sd
AACSB: Reflectivesd
ThinkingAICPA: BB Critical
sd sd s d sd
Thinking
sd
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
sd sd sd sd sd sd sd sd sd sd sd sd sd sd
Answer: FALSE s d
Explanation: Creditors lend money to a sd sd sd sd sd
company.Difficulty: 1 Easy
sd sd sd sd
Topic: Defining Accounting
s d sd
Learning Objective: 01-01 Describe the two primary functions of financial
sd s d sd sd sd sd sd sd sd
accounting.Bloom's: Remember
sd sd sd
AACSB: Reflectivesd
ThinkingAICPA: BB Critical
sd sd s d sd
Thinking
sd
4) The primary functions of financial accounting are to measure business activities of a
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companyand to communicate those measurements to internal parties for decision-making
sd sd sd sd sd sd sd sd sd sd sd
purposes.
sd
Answer: FALSE s d
Explanation: Financial accounting primarily serves to provide information to external
sd sd sd sd sd sd sd sd sd
parties.Difficulty: 2 Medium
sd sd sd sd
Topic: Defining Accounting
s d sd
Learning Objective: 01-01 Describe the two primary functions of financial
sd s d sd sd sd sd sd sd sd
accounting.Bloom's: Understand
sd sd sd
, AACSB: Reflective
sd
ThinkingAICPA: BB Critical
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Thinking
sd
