TEST BANK FOR Financial Accounting 5th Edition by David Spiceland , ISBN: 9781260159653 |All Chapters Included| Guide A+

TEST BANK
Financial Accounting

David Spiceland

5th Edition
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,Table of Contents

Part 1: Introduction to Financial Accounting
1. Introduction to Financial Accounting
2. The Accounting Information System
3. The Balance Sheet and Financial Disclosures

Part 2: Operating Activities
4. The Income Statement, Comprehensive Income, and the Statement of Cash Flows
5. Revenue Recognition and Income Measurement
6. Cash and Receivables
7. Inventories: Measurement and Flow Assumptions
8. Inventories: Additional Valuation Issues

Part 3: Investing and Financing Activities
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9. Property, Plant, and Equipment and Intangible Assets: Acquisition and Disposition
10. Property, Plant, and Equipment and Intangible Assets: Utilization and Impairment
11. Investments
12. Current Liabilities and Contingencies
13. Long-Term Liabilities
14. Shareholders’ Equity
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Part 4: Other Measurement and Reporting Topics
15. Accounting for Income Taxes
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16. Pensions and Other Postretirement Benefits
17. Share-Based Compensation and Earnings Per Share
18. Accounting Changes and Error Corrections
19. The Statement of Cash Flows Revisited
20. Full Disclosure in Financial Reporting
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Appendices
A. Compound Interest Tables
B. Ratio Analysis Guide
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C. Summary of Key Accounting Standards
D. Glossary
E. Index

,Financial Accounting, 5e (Spiceland)
Chapter 1 A Framework for Financial Accounting

1) Accounting is a system of maintaining records of a company's operations and communicating
that information to decision makers.

Answer: TRUE
Difficulty: 1 Easy
Topic: Defining Accounting
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking

2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE
Difficulty: 1 Easy
Topic: Defining Accounting
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
Bloom's: Remember
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AACSB: Reflective Thinking
AICPA: BB Critical Thinking
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3) Accounting information is used by creditors to decide whether to invest in a company's stock.

Answer: FALSE
Explanation: Creditors lend money to a company.
Difficulty: 1 Easy
Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.
Bloom's: Remember
AACSB: Reflective Thinking
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AICPA: BB Critical Thinking

4) The primary functions of financial accounting are to measure business activities of a company
and to communicate those measurements to internal parties for decision-making purposes.

Answer: FALSE
Explanation: Financial accounting primarily serves to provide information to external parties.
Difficulty: 2 Medium
Topic: Defining Accounting
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking

, 5) Financing activities are transactions involving external sources of funding.

Answer: TRUE
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand the business activities that financial accounting
measures.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: FN Measurement

6) Investing activities include the purchase and sale of long-term resources.

Answer: TRUE
Difficulty: 1 Easy
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Topic: Measuring Business Activities
Learning Objective: 01-02 Understand the business activities that financial accounting
measures.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: FN Measurement
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7) Operating activities include transactions that relate to the primary operations of the company.
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Answer: TRUE
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand the business activities that financial accounting
measures.
Bloom's: Remember
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AACSB: Reflective Thinking
AICPA: FN Measurement
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8) A corporation is an entity that is legally separate from its owners.

Answer: TRUE
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand the business activities that financial accounting
measures.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking