TEST6BANK6FOR6INTERMEDIATE6ACCOUNT
ING,6
11TH6EDITION6
BY6DAVID6SPICELAND,6MARK6NELSON,6WAYNE6THOMAS
,6JENNIFER
Version6 1
1
,Answer6Key
Test6name:6chapter
6161)
TERM PHRASE
Term6number6
that6matches6
the6phrase.
1.6Predictive6va lue Information6is6useful6in 1
projecting6cash6flows.
2.6Relevance Pertinent6to6the6decision6at 2
hand.
3.6Distribution to Information6is6available6prior 5
owners to6the6decision.
4.6Confirmatory Decrease6in6equity6due6to6 3
value transfers6to6owners.
5.6Timeliness Information6confirms 4
expectations.
2)
TERM PHRASE Term6number6
that6matches
the6phrase.
1.6Gain Along6with6relevance,6a 5
fundamental6decision-
specific6
quality.
2.6Materiality Results6if6an6asset6is6sold for 1
more6than6book6value.
3.6Completeness Contains6all6information 3
necessary6for6faithful
representation.
4.6Comprehensive The6change6in6equity6from 4
income nonowner6transactions.
Version6 2
1
, 5.6Faithful6re Concerns6the6decision-making 2
presentation impact6of6both6the6amount6and6
nature6of6an6item.
3)
TERM PHRASE
Term6number6
that6matches6
the6phrase.
1. Neutrality Important6in6analysis6between 2
firms.
2. Comparability Accounting6information6should 1
be6unbiased.
3. Consistency The6decision6to6include6an 5
amount6in6the6financial6
statements.
4. Cost-effectiveness6 Applying6the6same6accounting 3
practices6over6time.
5. Recognition Considers6the6value6of6using 4
information6relative6to6cost6of6
providing6it.
4)
TERM PHRASE
Term6number6
that6matches6
the6phrase.
1. Monetary6unit6 Implies6consensus6among 2
assumption different6observers.
2. Verifiability Assumes6all6transactions6can6be 3
identified6with6a6particular6
entity.
3. Economic6entity6 Assumes6an6entity6will6continue 4
assumption to6operate6indefinitely.
4. Going6concern6 Requires6reporting6the 5
assumption financial6life6of6an6entity6in6
discrete6time6frames.
5. Periodicity6 Ignores6the6possibility6of 1
assumption inflation.
5)
TERM PHRASE Term6number
that6matches
Version6 3
1
, the6phrase.
1.6Historical cost Basis6of6measurement6for6fixed 1
Version6 4
1
ING,6
11TH6EDITION6
BY6DAVID6SPICELAND,6MARK6NELSON,6WAYNE6THOMAS
,6JENNIFER
Version6 1
1
,Answer6Key
Test6name:6chapter
6161)
TERM PHRASE
Term6number6
that6matches6
the6phrase.
1.6Predictive6va lue Information6is6useful6in 1
projecting6cash6flows.
2.6Relevance Pertinent6to6the6decision6at 2
hand.
3.6Distribution to Information6is6available6prior 5
owners to6the6decision.
4.6Confirmatory Decrease6in6equity6due6to6 3
value transfers6to6owners.
5.6Timeliness Information6confirms 4
expectations.
2)
TERM PHRASE Term6number6
that6matches
the6phrase.
1.6Gain Along6with6relevance,6a 5
fundamental6decision-
specific6
quality.
2.6Materiality Results6if6an6asset6is6sold for 1
more6than6book6value.
3.6Completeness Contains6all6information 3
necessary6for6faithful
representation.
4.6Comprehensive The6change6in6equity6from 4
income nonowner6transactions.
Version6 2
1
, 5.6Faithful6re Concerns6the6decision-making 2
presentation impact6of6both6the6amount6and6
nature6of6an6item.
3)
TERM PHRASE
Term6number6
that6matches6
the6phrase.
1. Neutrality Important6in6analysis6between 2
firms.
2. Comparability Accounting6information6should 1
be6unbiased.
3. Consistency The6decision6to6include6an 5
amount6in6the6financial6
statements.
4. Cost-effectiveness6 Applying6the6same6accounting 3
practices6over6time.
5. Recognition Considers6the6value6of6using 4
information6relative6to6cost6of6
providing6it.
4)
TERM PHRASE
Term6number6
that6matches6
the6phrase.
1. Monetary6unit6 Implies6consensus6among 2
assumption different6observers.
2. Verifiability Assumes6all6transactions6can6be 3
identified6with6a6particular6
entity.
3. Economic6entity6 Assumes6an6entity6will6continue 4
assumption to6operate6indefinitely.
4. Going6concern6 Requires6reporting6the 5
assumption financial6life6of6an6entity6in6
discrete6time6frames.
5. Periodicity6 Ignores6the6possibility6of 1
assumption inflation.
5)
TERM PHRASE Term6number
that6matches
Version6 3
1
, the6phrase.
1.6Historical cost Basis6of6measurement6for6fixed 1
Version6 4
1
