Test Bank For Intermediate Accounting, 11th Edition by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer

Test Bank For Intermediate Accounting,
m m m m m




11th Edition
m m




by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
m m m m m m m




Version 1
1

,Answer Key m




Test name: chapter
m m




11)
m m




TERM PHRASE Term
m numberthat
m


m matchesthe m


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


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


4. Confirmatory
m Decrease in equity due
m m m 3
value totransfers to owners.
m m m m


5. Timeliness
m Information confirms m 4
expectations.
2)
TERM PHRASE Term
m numberthat m


m matches
the phrase.
m



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


specificquality. m


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


3. Completeness
m Contains all information
m m 3
necessary for faithful m m


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




Version 2
1

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


n andnature of an item.
m m m m m




3)
TERM PHRASE Term
m numberthat
m


m matchesthe m


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


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


financialstatements.
m m


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


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


ofproviding it.
m m m



4)
TERM PHRASE Term
m numberthat
m


m matchesthe m


m phrase.
1. Monetary Implies consensus among m m 2
unitassumption
m m different observers. m


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


particularentity.
m m


3. Economic Assumes an entity will continue
m m m m 4
entityassumption
m m to operate indefinitely.
m m


4. Going Requires reporting the m m 5
concernassumpti
m m financial life of an entity m m m m


on indiscrete time frames.
m m m m


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




Version 3
1

, that matches
m


the phrase.
m



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




Version 4
1