,
,TEST BANK FOR G! G!
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Her
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rmann
Chapter 1 G! A Framework for Financial Accounting
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1) Accounting is a system of maintaining records of a company's operations and communicati
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ng that information to decision makers.
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Answer: TRUE Dif
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ficulty: 1 Easy
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Topic: Defining Accounting G!
Learning Objective: 01-
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01 Describe the two primary functions of financial accounting. Bloom's:
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Remember
AACSB:
Reflective Thinking G! G!
AICPA:
BB Critical ThinkinG! G!
g
2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE Dif
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ficulty: 1 Easy
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Topic: Defining Accounting G!
Learning Objective: 01-
G!
01 Describe the two primary functions of financial accounting. Bloom's:
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Remember
AACSB:
Reflective Thinking G! G!
AICPA:
BB Critical ThinkinG! G!
g
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE G ! G !
Explanation:
Creditors lend money to a company G! G! G! G! G!
. Difficulty: 1 Easy
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Topic: Defining Accounting G!
Learning Objective: 01-
G!
01 Describe the two primary functions of financial accounting. Bloom's:
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Remember
AACSB:
Reflective Thinking G! G!
AICPA:
BB Critical ThinkinG! G!
g
, 4) The primary functions of financial accounting are to measure business activities of a compa
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ny and to communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE G ! G !
Explanation:
Financial accounting primarily serves to provide information to external partie
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s. Difficulty: 2 Medium
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Topic: Defining Accounting G!
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
G! G! G! G! G! G! G! G! G!
,TEST BANK FOR G! G!
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Her
G! G! G! G! G! G! G! G! G! G!
rmann
Chapter 1 G! A Framework for Financial Accounting
G! G! G! G!
1) Accounting is a system of maintaining records of a company's operations and communicati
G! G! G! G! G! G! G! G! G! G! G! G!
ng that information to decision makers.
G! G! G! G! G!
Answer: TRUE Dif
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ficulty: 1 Easy
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Topic: Defining Accounting G!
Learning Objective: 01-
G!
01 Describe the two primary functions of financial accounting. Bloom's:
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Remember
AACSB:
Reflective Thinking G! G!
AICPA:
BB Critical ThinkinG! G!
g
2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE Dif
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ficulty: 1 Easy
G! G!
Topic: Defining Accounting G!
Learning Objective: 01-
G!
01 Describe the two primary functions of financial accounting. Bloom's:
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Remember
AACSB:
Reflective Thinking G! G!
AICPA:
BB Critical ThinkinG! G!
g
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE G ! G !
Explanation:
Creditors lend money to a company G! G! G! G! G!
. Difficulty: 1 Easy
G! G! G!
Topic: Defining Accounting G!
Learning Objective: 01-
G!
01 Describe the two primary functions of financial accounting. Bloom's:
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Remember
AACSB:
Reflective Thinking G! G!
AICPA:
BB Critical ThinkinG! G!
g
, 4) The primary functions of financial accounting are to measure business activities of a compa
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ny and to communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE G ! G !
Explanation:
Financial accounting primarily serves to provide information to external partie
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s. Difficulty: 2 Medium
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Topic: Defining Accounting G!
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
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