Intermediate Accounting 11th Edition Test Bank | Complete Exam Prep | All Chapters Covered

Full Test Bank For
Intermediate Accounting, 11th Edition



Answer Key

Test name: chapter 1

1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive value Information is useful in 1
projecting cash flows.
2. Relevance Pertinent to the decision at 2
hand.
3. Distribution to Information is available prior 5
owners to the decision.
4. Confirmatory Decrease in equity due to 3
value transfers to owners.
5. Timeliness Information confirms 4
expectations.
2)
TERM PHRASE Term number
that matches
the phrase.
1. Gain Along with relevance, a 5
fundamental decision-specific
quality.
2. Materiality Results if an asset is sold for 1
more than book value.
3. Completeness Contains all information 3
necessary for faithful
representation.
4. Comprehensive The change in equity from 4
income nonowner transactions.



Version 1 1

, 5. Faithful Concerns the decision-making 2
representation impact of both the amount and
nature of an item.
3)
TERM PHRASE Term number
that matches
the phrase.
1. Neutrality Important in analysis between 2
firms.
2. Comparability Accounting information should 1
be unbiased.
3. Consistency The decision to include an 5
amount in the financial
statements.
4. Cost-effectiveness Applying the same accounting 3
practices over time.
5. Recognition Considers the value of using 4
information relative to cost of
providing it.
4)
TERM PHRASE Term ynumber
y that
ymatches y the
yphrase.
1. Monetary Implies yconsensus yamong 2
yunit y assumption different yobservers.
2. Verifiability Assumes yall ytransactions ycan ybe 3
identified ywith ya yparticular
y entity.
3. Economic Assumes yan yentity ywill ycontinue 4
yentity y assumption to yoperate yindefinitely.
4. Going Requires yreporting ythe 5
yconcern financial ylife yof yan yentity yin
y assumption y discrete ytime yframes.
Ignores ythe ypossibility yof 1
5. Periodicity inflation.
y assumption

5)
TERM PHRASE Term ynumber
that ymatches


Version 1 2

, the yphrase.
1. yHistorical cost Basis yof ymeasurement yfor yfixed 1




Version 1 3

, assets.
2. Materiality Discounts yfuture ycash yflows. 5
3. Revenue Occurs ywhen ygoods yor yservices 3
y recognitio are ytransferred yto
n ythe y customer.
4. Full ydisclosure Reporting yof yall yinformation 4
that ycould yaffect ydecisions.
5. Present yvalue Application yof yGAAP ysometimes 2
avoided yunder ythis yconstraint.
6)
TERM PHRASE Term ynumber
y that
ymatches y the
yphrase.
1. Financial Undermines yrepresentational 3
y Accounting faithfulness yby ybeing
yStandards y Board y inconsistent ywith
2. Accounting yneutrality.
y Principles It yestablished yGAAP ybefore ythe 2
yBoard FASB.
3. Conservatism Its yEITF yIssues yare yGAAP ywhen 1
entered yin ythe yAccounting
y Standards yCodification.
4. American It yhas ythe yauthority yto yset yU.S. 5
y Institute yof accounting ystandards.
yCPAs y (AICPA)
5. Securities yand It yis ythe ynational yorganization 4
y Exchange for yCPAs yin ythe yUnited yStates.
yCommission

7)
TERM PHRASE Term ynumber
y that
ymatches y the
1. Expenses Net assets. yphrase.
2
2. Equity Outflows of resources to 1
generate revenues.
3. Distributions to Cash dividends. 3

owners
4. Investments Claims yof ycreditors yagainst 5
yby y owners the yassets yof ya ybusiness.
5. Liabilities Transfers yof yresources yin 4

Version 1 4