FULL TEST BANK FOR Intermediate Accounting, 11th Edition ||All Chapters Included

FULL TEST BANK FOR
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Intermediate Accounting, 11th Edition
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Answer Key q




Test name: chapter 1
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q1)
TERM PHRASE Term number q


qthat matches
q


qthe phrase.
q


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


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


4. Confirmatory
q Decrease in equity due to q q q q 3
value qtransfers to owners. q q


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


q that matches
q


the phrase.
q


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


quality.
q


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


3. Completeness
q Contains all informationq q 3
necessary for faithful q q


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




Version 1 1

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


n q nature of an item.q q q




3)
TERM PHRASE Term number q


qthat matches
q


qthe phrase.
q


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


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


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


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


q providing it. q




4)
TERM PHRASE Term number q


q that matches
q


q the phrase.
q


1. Monetary unit
q Implies consensus among q q 2
qassumption different observers. q


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


entity.
q


3. Economic entity
q Assumes an entity will continue
q q q q 4
qassumption to operate indefinitely.
q q


4. Going concern
q Requires reporting the q q 5
qassumption financial life of an entity in q q q q q


discrete time frames.
q q q


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


that matches
q


the phrase.
q



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

Version 1 2

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


n q customer.
4. Full disclosure
q Reporting of all information q q q 4
that could affect decisions.
q q q


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




6)
TERM PHRASE Term number
q


q that matches
q


q the phrase.
q


1. Financial Undermines representational q 3
Accounting
q faithfulness by being q q


Standards
q Board
q inconsistent with neutrality.
q q q


2. Accounting It established GAAP before the
q q q q 2
Principles Board
q q FASB.
3. Conservatism Its EITF Issues are GAAP when
q q q q q 1
entered in the Accounting q q q


Standards Codification.
q q


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


q(AICPA)
5. Securities and q It is the national organization
q q q q 4
Exchange Commission
q q for CPAs in the United States.
q q q q q




7)
TERM PHRASE Term number
that matches
the phrase.
1. Expenses Net assets. 2
2. Equity Outflows of resources to 1
generate revenues.
3. Distributions to Cash dividends. 3
owners Claims of creditors against q q q 5
4. Investments by q the assets of a business.
q q q q


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


qpreferred stock. q




Version 1 3

, 8)
TERM PHRASE Term number q


q that matches q


q the phrase.
q


1. Losses Net outflows from peripheral
q q q 1
transactions.
2. Assets Increases in equity from the q q q q 3
sale of goods and/or services.
q q q q


3. Revenues Results if an asset is sold for
q q q q q q 5
more than book value.
q q q


4. Comprehensive All changes in equity except
q q q q 4
qincome owner transactions. q


5. Gains Probable future economic q q 2
benefits controlled by an q q q


qentity.
9)
TERM PHRASE Term number q


qthat matches q


qthe phrase.
q


1. SEC Establishes auditing standards in q q q 6
the U.S. for public companies.
q q q q


2. FASB Primary national organization of
q q q 7
accountants working in industry. q q q


3. IASB Sets accounting standards in the
q q q q 2
United States.q


4. AICPA Provides timely responses to
q q q 5
financial reporting issues.
q q


5. EITF The FASB's parent organization.
q q q 10
6. PCAOB Advises the FASB. q q 8
7. IMA FASB's predecessor.
q 9
8. FASAC Regulates the financial reporting
q q q 1
for public companies.
q q


9. APB National organization of certified
q q q 4
public accountants.
q


10. FAF Sets global accounting standards.
q q q 3




Version 1 4