TEST BANK b
Financial Accounting, 6th Edition
b b b
Chapters 1 – 12 Complete
b b b b
By David Spiceland, Wayne Thomas and Don Herrmann
b b b b b b b
,TABLE bOF bCONTENTS b
Chapter b1: bA bFramework bfor bFinancial bAccounting b Chapter b2: bThe
Accounting bCycle: bDuring bthe bPeriod b Chapter b3: bThe bAccounting
b
Cycle: bEnd bof bthe bPeriod b Chapter b4: bCash band bInternal bControls
b
Chapter b5: bReceivables band bSales
Chapter b6: bInventory band bCost bof bGoods bSold b Chapter b7: bLong-Term
Assets
b
Chapter b8: bCurrent bLiabilities b b Chapter b9: bLong-
Term bLiabilities b Chapter b10: bStockholders’ bEquity
b Chapter b11: bStatement bof bCash bFlows
Chapter b12: bFinancial bStatement bAnalysis
,Chapter b1 b A bFramework bfor bFinancial bAccounting
1) Accounting bis ba bsystem bof bmaintaining brecords bof ba bcompany's boperations band
bcommunicating b that binformation bto bdecision bmakers.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial
baccounting.Bloom's: b Remember
AACSB: bReflective bThinking
b AICPA: b BB bCritical bThinking
2) Accounting binformation bis bused bby binvestors bto bdecide bwhether bto binvest bin ba bcompany's bstock.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial
baccounting.Bloom's: b Remember
AACSB: bReflective bThinking
b AICPA: b BB bCritical bThinking
3) Accounting binformation bis bused bby bcreditors bto bdecide bwhether bto binvest bin ba bcompany's bstock.
Answer: b FALSE
Explanation: bCreditors blend bmoney bto ba bcompany.
b Difficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial
baccounting.Bloom's: b Remember
AACSB: bReflective bThinking
b AICPA: b BB bCritical bThinking
4) The bprimary bfunctions bof bfinancial baccounting bare bto bmeasure bbusiness bactivities bof ba
bcompany b and bto bcommunicate bthose bmeasurements bto binternal bparties bfor bdecision-making
bpurposes.
Answer: b FALSE
Explanation: bFinancial baccounting bprimarily bserves bto bprovide binformation bto bexternal bparties.
b Difficulty: b2 bMedium
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial
baccounting.Bloom's: b Understand
AACSB: bReflective bThinking
b AICPA: b BB bCritical bThinking
, 5) Financing bactivities bare btransactions binvolving bexternal bsources bof bfunding.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial
baccountingmeasures. b Bloom's: b b Remember bAACSB:
Reflective bThinkingAICPA: b FN
bMeasurement
6) Investing bactivities binclude bthe bpurchase band bsale bof blong-term bresources.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial
baccountingmeasures. b Bloom's: b b Remember bAACSB:
Reflective bThinkingAICPA: b FN
bMeasurement
7) Operating bactivities binclude btransactions bthat brelate bto bthe bprimary boperations bof bthe
bcompany.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial
baccountingmeasures. b Bloom's: b b Remember bAACSB:
Reflective bThinkingAICPA: b FN
bMeasurement
8) A bcorporation bis ban bentity bthat bis blegally bseparate bfrom bits bowners.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial
baccountingmeasures. b Bloom's: b b Remember bAACSB:
Reflective bThinkingAICPA: b BB
bCritical bThinking
Financial Accounting, 6th Edition
b b b
Chapters 1 – 12 Complete
b b b b
By David Spiceland, Wayne Thomas and Don Herrmann
b b b b b b b
,TABLE bOF bCONTENTS b
Chapter b1: bA bFramework bfor bFinancial bAccounting b Chapter b2: bThe
Accounting bCycle: bDuring bthe bPeriod b Chapter b3: bThe bAccounting
b
Cycle: bEnd bof bthe bPeriod b Chapter b4: bCash band bInternal bControls
b
Chapter b5: bReceivables band bSales
Chapter b6: bInventory band bCost bof bGoods bSold b Chapter b7: bLong-Term
Assets
b
Chapter b8: bCurrent bLiabilities b b Chapter b9: bLong-
Term bLiabilities b Chapter b10: bStockholders’ bEquity
b Chapter b11: bStatement bof bCash bFlows
Chapter b12: bFinancial bStatement bAnalysis
,Chapter b1 b A bFramework bfor bFinancial bAccounting
1) Accounting bis ba bsystem bof bmaintaining brecords bof ba bcompany's boperations band
bcommunicating b that binformation bto bdecision bmakers.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial
baccounting.Bloom's: b Remember
AACSB: bReflective bThinking
b AICPA: b BB bCritical bThinking
2) Accounting binformation bis bused bby binvestors bto bdecide bwhether bto binvest bin ba bcompany's bstock.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial
baccounting.Bloom's: b Remember
AACSB: bReflective bThinking
b AICPA: b BB bCritical bThinking
3) Accounting binformation bis bused bby bcreditors bto bdecide bwhether bto binvest bin ba bcompany's bstock.
Answer: b FALSE
Explanation: bCreditors blend bmoney bto ba bcompany.
b Difficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial
baccounting.Bloom's: b Remember
AACSB: bReflective bThinking
b AICPA: b BB bCritical bThinking
4) The bprimary bfunctions bof bfinancial baccounting bare bto bmeasure bbusiness bactivities bof ba
bcompany b and bto bcommunicate bthose bmeasurements bto binternal bparties bfor bdecision-making
bpurposes.
Answer: b FALSE
Explanation: bFinancial baccounting bprimarily bserves bto bprovide binformation bto bexternal bparties.
b Difficulty: b2 bMedium
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial
baccounting.Bloom's: b Understand
AACSB: bReflective bThinking
b AICPA: b BB bCritical bThinking
, 5) Financing bactivities bare btransactions binvolving bexternal bsources bof bfunding.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial
baccountingmeasures. b Bloom's: b b Remember bAACSB:
Reflective bThinkingAICPA: b FN
bMeasurement
6) Investing bactivities binclude bthe bpurchase band bsale bof blong-term bresources.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial
baccountingmeasures. b Bloom's: b b Remember bAACSB:
Reflective bThinkingAICPA: b FN
bMeasurement
7) Operating bactivities binclude btransactions bthat brelate bto bthe bprimary boperations bof bthe
bcompany.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial
baccountingmeasures. b Bloom's: b b Remember bAACSB:
Reflective bThinkingAICPA: b FN
bMeasurement
8) A bcorporation bis ban bentity bthat bis blegally bseparate bfrom bits bowners.
Answer: bTRUE
b Difficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial
baccountingmeasures. b Bloom's: b b Remember bAACSB:
Reflective bThinkingAICPA: b BB
bCritical bThinking
