Test Bank For Intermediate Accounting,
k k k k k
11th Edition
k k
by kDavid kSpiceland, kMark kNelson, kWayne kThomas, kJennifer
Version 1 1
,Answer kKey
Test kname: kchapter
11)
k k
TERM PHRASE Term
knumberkthat
kmatcheskthe
kphrase.
1. kPredictive lue Information kis kuseful kin 1
kva
projecting kcash kflows.
2. kRelevance Pertinent kto kthe kdecision kat 2
hand.
3. kDistribution to Information kis kavailable kprior 5
owners to kthe kdecision.
4. kConfirmatory Decrease kin kequity kdue 3
value ktok
transfers kto kowners.
5. kTimeliness Information kconfirms 4
expectations.
2)
TERM PHRASE Term
knumberk that
kmatches
the kphrase.
1. kGain Along kwith krelevance, ka 5
fundamental kdecision-
specifickquality.
2. kMateriality Results kif kan kasset kis for 1
ksold
more kthan kbook kvalue.
3. kCompleteness Contains kall kinformation 3
necessary kfor kfaithful
representation.
4. The kchange kin kequity kfrom 4
kComprehensive nonowner ktransactions.
income
Version 1 2
, 5. kFaithful Concerns kthe kdecision-making 2
krepresentatio impact kof kboth kthe kamount
n kandk
nature kof kan kitem.
3)
TERM PHRASE Term
knumberkthat
kmatcheskthe
kphrase.
1. Neutrality Important kin kanalysis kbetween 2
firms.
2. Comparability Accounting kinformation kshould 1
be kunbiased.
3. Consistency The kdecision kto kinclude kan 5
amount kin kthe
kfinancialk
statements.
4. Cost-effectiveness k Applying kthe ksame kaccounting 3
practices kover ktime.
5. Recognition Considers kthe kvalue kof kusing 4
information krelative kto kcost
kofk
providing kit.
4)
TERM PHRASE Term
knumberk
that
kmatchesk
the
kphrase.
1. Monetary Implies kconsensus kamong 2
kunitk
assumption different kobservers.
2. Verifiability Assumes kall ktransactions kcan kbe 3
identified kwith ka
kparticularkentity.
3. Economic Assumes kan kentity kwill kcontinue 4
kentityk
assumption to koperate kindefinitely.
4. Going Requires kreporting kthe 5
kconcernkassumpti financial klife kof kan kentity
on kink
discrete ktime kframes.
Ignores kthe kpossibility kof 1
5. Periodicityk inflation.
assumption
5)
TERM PHRASE Term knumber
Version 1 3
, that
kmatches
the kphrase.
1. kHistorical cost Basis kof kmeasurement kfor 1
kfixed
Version 1 4
k k k k k
11th Edition
k k
by kDavid kSpiceland, kMark kNelson, kWayne kThomas, kJennifer
Version 1 1
,Answer kKey
Test kname: kchapter
11)
k k
TERM PHRASE Term
knumberkthat
kmatcheskthe
kphrase.
1. kPredictive lue Information kis kuseful kin 1
kva
projecting kcash kflows.
2. kRelevance Pertinent kto kthe kdecision kat 2
hand.
3. kDistribution to Information kis kavailable kprior 5
owners to kthe kdecision.
4. kConfirmatory Decrease kin kequity kdue 3
value ktok
transfers kto kowners.
5. kTimeliness Information kconfirms 4
expectations.
2)
TERM PHRASE Term
knumberk that
kmatches
the kphrase.
1. kGain Along kwith krelevance, ka 5
fundamental kdecision-
specifickquality.
2. kMateriality Results kif kan kasset kis for 1
ksold
more kthan kbook kvalue.
3. kCompleteness Contains kall kinformation 3
necessary kfor kfaithful
representation.
4. The kchange kin kequity kfrom 4
kComprehensive nonowner ktransactions.
income
Version 1 2
, 5. kFaithful Concerns kthe kdecision-making 2
krepresentatio impact kof kboth kthe kamount
n kandk
nature kof kan kitem.
3)
TERM PHRASE Term
knumberkthat
kmatcheskthe
kphrase.
1. Neutrality Important kin kanalysis kbetween 2
firms.
2. Comparability Accounting kinformation kshould 1
be kunbiased.
3. Consistency The kdecision kto kinclude kan 5
amount kin kthe
kfinancialk
statements.
4. Cost-effectiveness k Applying kthe ksame kaccounting 3
practices kover ktime.
5. Recognition Considers kthe kvalue kof kusing 4
information krelative kto kcost
kofk
providing kit.
4)
TERM PHRASE Term
knumberk
that
kmatchesk
the
kphrase.
1. Monetary Implies kconsensus kamong 2
kunitk
assumption different kobservers.
2. Verifiability Assumes kall ktransactions kcan kbe 3
identified kwith ka
kparticularkentity.
3. Economic Assumes kan kentity kwill kcontinue 4
kentityk
assumption to koperate kindefinitely.
4. Going Requires kreporting kthe 5
kconcernkassumpti financial klife kof kan kentity
on kink
discrete ktime kframes.
Ignores kthe kpossibility kof 1
5. Periodicityk inflation.
assumption
5)
TERM PHRASE Term knumber
Version 1 3
, that
kmatches
the kphrase.
1. kHistorical cost Basis kof kmeasurement kfor 1
kfixed
Version 1 4
