Test Bank for Financial accounting 5th edition by David Spiceland and Thomas Chapters 1-12 Covered

, Test Bank
Financial accounting 5th edition
by David Spiceland and Thomas Chapters 1-12 Covered




TABLEOFCONTENT i i




1AFrameworkforFinancialAccounting
i i i i i




2TheAccountingCycle:DuringthePeriod
i i i i i i




3TheAccountingCycle:EndofthePeriod
i i i i i i i




4CashandInternalControls
i i i i




5ReceivablesandSales
i i i




6InventoryandCostofGoodsSold
i i i i i i




7Long-TermAssets
i i




8CurrentLiabilities
i i




9Long-TermLiabilities
i i




10Stockholders’Equity
i i




11StatementofCashFlows
i i i i

,12FinancialStatementAnalysis
i i i




FinancialAccounting,5e(Spiceland) i i i




Chapter1 AFrameworkforFinancialAccounting i i i i i i




1) Accountingisasystemofmaintainingrecordsofacompany'soperationsandcommunicatingthatin
i i i i i i i i i i i i i i




formationtodecisionmakers. i i i




Answer: TRUEDifficu i i




lty:1Easyi i




Topic: DefiningAccountingi i




LearningObjective: 01- i i




01Describethetwoprimaryfunctionsoffinancialaccounting. Bloom's: Remember
i i i i i i i i i i




AACSB: ReflectiveThinkingAIC i i i




PA: BBCriticalThinking
i i i




2) Accountinginformationisusedbyinvestorstodecidewhethertoinvestinacompany'sstock.
i i i i i i i i i i i i i i




Answer: TRUEDifficu i i




lty:1Easyi i




Topic: DefiningAccountingi i




LearningObjective: 01- i i




01Describethetwoprimaryfunctionsoffinancialaccounting. Bloom's: Remember
i i i i i i i i i i




AACSB: ReflectiveThinkingAIC i i i




PA: BBCriticalThinking
i i i




3) Accountinginformationisusedbycreditorstodecidewhethertoinvestinacompany'sstock.
i i i i i i i i i i i i i i




Answer: FALSE i




Explanation: Creditorslendmoneytoacompany.Diffic i i i i i i i




ulty:1Easy i i




Topic: DefiningAccountingi i




LearningObjective: 01- i i




01Describethetwoprimaryfunctionsoffinancialaccounting. Bloom's: Remember
i i i i i i i i i i




AACSB: ReflectiveThinkingAIC i i i




PA: BBCriticalThinking
i i i




4) Theprimaryfunctionsoffinancialaccountingaretomeasurebusinessactivitiesofacompanyandto
i i i i i i i i i i i i i i i i

, communicatethosemeasurementstointernalpartiesfordecision-makingpurposes.
i i i i i i i i




Answer: FALSE i




Explanation: Financialaccountingprimarilyservestoprovideinformationtoexternalparties.Difficulty:
i i i i i i i i i i i i




2Medium
i




Topic: DefiningAccounting
i i




LearningObjective: 01- i i




01Describethetwoprimaryfunctionsoffinancialaccounting. Bloom's: Understand
i i i i i i i i i i




AACSB: ReflectiveThinkingAIC
i i i




PA: BBCriticalThinking
i i i