,TEST BANK FOR km km
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don H
km km km km km km km km km km
errmann
Chapter 1 km A Framework for Financial Accounting
km km km km
1) Accounting is a system of maintaining records of a company's operations and communic
km km km km km km km km km km km km
ating that information to decision makers.
km km km km km
Answer: TRUE Dik m km
fficulty: 1 Easy
km km
Topic: Defining Accounting km
Learning Objective: 01-
km
01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km
Remember
AACSB:
Reflective Thinking km k
mAICPA:
BB Critical Thinkin km km
g
2) Accounting information is used by investors to decide whether to invest in a company's stock
km km km km km km km km km km km km km km
.
Answer: TRUE Dik m km
fficulty: 1 Easy
km km
Topic: Defining Accounting km
Learning Objective: 01-
km
01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km
Remember
AACSB:
Reflective Thinking km k
mAICPA:
BB Critical Thinkin km km
g
3) Accounting information is used by creditors to decide whether to invest in a company's stock
km km km km km km km km km km km km km km
.
Answer: FALSE k m k m
Explanation:
Creditors lend money to a compan km km km km km
y. Difficulty: 1 Easy
km km km
Topic: Defining Accounting km
Learning Objective: 01-
km
01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km
Remember
AACSB:
Reflective Thinking km k
mAICPA:
, BB Critical Thinkin
km km
g
4) The primary functions of financial accounting are to measure business activities of a com
km km km km km km km km km km km km km
pany and to communicate those measurements to internal parties for decision-
km km km km km km km km km km
making purposes.
km
Answer: FALSE k m k m
Explanation:
Financial accounting primarily serves to provide information to external part
km km km km km km km km km
ies. Difficulty: 2 Medium
km km km
Topic: Defining Accounting km
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
km km km km km km km km km
, Bloom's:
Understand AACSB km
:
Reflective Thinking
m
k km k
AICPA:
m
BB Critical Thinkin
km km
g
5) Financing activities are transactions involving external sources of funding.
km km km km km km km km
Answer: TRUE Di
k m km
fficulty: 1 Easy
km km
Topic: Measuring Business Activities km km
Learning Objective: 01-
km
02 Understand the business activities that financial accounting measures. Bloom's: Remember
km km km km km km km km km
AACSB:
Reflective Thinking km k
mAICPA: FN Measurement km
6) Investing activities include the purchase and sale of long-term resources.
km km km km km km km km km
Answer: TRUE Di
k m km
fficulty: 1 Easy
km km
Topic: Measuring Business Activities km km
Learning Objective: 01-
km
02 Understand the business activities that financial accounting measures. Bloom's: Remember
km km km km km km km km km
AACSB:
Reflective Thinking km k
mAICPA: FN Measurement km
7) Operating activities include transactions that relate to the primary operations of the company.
km km km km km km km km km km km km
Answer: TRUE Di
k m km
fficulty: 1 Easy
km km
Topic: Measuring Business Activities km km
Learning Objective: 01-
km
02 Understand the business activities that financial accounting measures. Bloom's: Remember
km km km km km km km km km
AACSB:
Reflective Thinking km k
mAICPA: FN Measurement km
8) A corporation is an entity that is legally separate from its owners.
km km km km km km km km km km km
Answer: TRUE Di
k m km
fficulty: 1 Easy
km km
Topic: Measuring Business Activities km km
Learning Objective: 01-
km
02 Understand the business activities that financial accounting measures. Bloom's: Remember
km km km km km km km km km
AACSB:
Reflective Thinking km k
mAICPA:
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don H
km km km km km km km km km km
errmann
Chapter 1 km A Framework for Financial Accounting
km km km km
1) Accounting is a system of maintaining records of a company's operations and communic
km km km km km km km km km km km km
ating that information to decision makers.
km km km km km
Answer: TRUE Dik m km
fficulty: 1 Easy
km km
Topic: Defining Accounting km
Learning Objective: 01-
km
01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km
Remember
AACSB:
Reflective Thinking km k
mAICPA:
BB Critical Thinkin km km
g
2) Accounting information is used by investors to decide whether to invest in a company's stock
km km km km km km km km km km km km km km
.
Answer: TRUE Dik m km
fficulty: 1 Easy
km km
Topic: Defining Accounting km
Learning Objective: 01-
km
01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km
Remember
AACSB:
Reflective Thinking km k
mAICPA:
BB Critical Thinkin km km
g
3) Accounting information is used by creditors to decide whether to invest in a company's stock
km km km km km km km km km km km km km km
.
Answer: FALSE k m k m
Explanation:
Creditors lend money to a compan km km km km km
y. Difficulty: 1 Easy
km km km
Topic: Defining Accounting km
Learning Objective: 01-
km
01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km
Remember
AACSB:
Reflective Thinking km k
mAICPA:
, BB Critical Thinkin
km km
g
4) The primary functions of financial accounting are to measure business activities of a com
km km km km km km km km km km km km km
pany and to communicate those measurements to internal parties for decision-
km km km km km km km km km km
making purposes.
km
Answer: FALSE k m k m
Explanation:
Financial accounting primarily serves to provide information to external part
km km km km km km km km km
ies. Difficulty: 2 Medium
km km km
Topic: Defining Accounting km
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
km km km km km km km km km
, Bloom's:
Understand AACSB km
:
Reflective Thinking
m
k km k
AICPA:
m
BB Critical Thinkin
km km
g
5) Financing activities are transactions involving external sources of funding.
km km km km km km km km
Answer: TRUE Di
k m km
fficulty: 1 Easy
km km
Topic: Measuring Business Activities km km
Learning Objective: 01-
km
02 Understand the business activities that financial accounting measures. Bloom's: Remember
km km km km km km km km km
AACSB:
Reflective Thinking km k
mAICPA: FN Measurement km
6) Investing activities include the purchase and sale of long-term resources.
km km km km km km km km km
Answer: TRUE Di
k m km
fficulty: 1 Easy
km km
Topic: Measuring Business Activities km km
Learning Objective: 01-
km
02 Understand the business activities that financial accounting measures. Bloom's: Remember
km km km km km km km km km
AACSB:
Reflective Thinking km k
mAICPA: FN Measurement km
7) Operating activities include transactions that relate to the primary operations of the company.
km km km km km km km km km km km km
Answer: TRUE Di
k m km
fficulty: 1 Easy
km km
Topic: Measuring Business Activities km km
Learning Objective: 01-
km
02 Understand the business activities that financial accounting measures. Bloom's: Remember
km km km km km km km km km
AACSB:
Reflective Thinking km k
mAICPA: FN Measurement km
8) A corporation is an entity that is legally separate from its owners.
km km km km km km km km km km km
Answer: TRUE Di
k m km
fficulty: 1 Easy
km km
Topic: Measuring Business Activities km km
Learning Objective: 01-
km
02 Understand the business activities that financial accounting measures. Bloom's: Remember
km km km km km km km km km
AACSB:
Reflective Thinking km k
mAICPA:
