TEST BANK
All Chapters Included
,Financial Accounting, 6th Edition By David Spiceland, Wayne Thomas
and Don Herrmann Chapters 1 – 12 Complete
TABLE OF CONTENTS
Chapter 1: A Framework for Financial Accounting
Chapter 2: The Accounting Cycle: During the Period
Chapter 3: The Accounting Cycle: End of the Period
Chapter 4: Cash and Internal Controls
Chapter 5: Receivables and Sales
Chapter 6: Inventory and Cost of Goods Sold
Chapter 7: Long-Term Assets
Chapter 8: Current Liabilities
Chapter 9: Long-Term Liabilities
Chapter 10: Stockholders’ Equity
Chapter 11: Statement of Cash Flows
Chapter 12: Financial Statement Analysis
,Chapter 1 A Framework for Financial Accounting
1) Accounting is a system of maintaining records of a company's operations and
communicatingthat 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
ThinkingAICPA: BB
Critical Thinking
2) Accounting information is used by investors to decide whether to invest in a
company's stock.
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
ThinkingAICPA: BB
Critical Thinking
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
Learning Objective: 01-01 Describe the two primary functions of financial
accounting.Bloom's: Remember
AACSB: Reflective
ThinkingAICPA: BB
Critical Thinking
, 4) The primary functions of financial accounting are to measure business activities
of a companyand 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
ThinkingAICPA: BB
Critical Thinking
All Chapters Included
,Financial Accounting, 6th Edition By David Spiceland, Wayne Thomas
and Don Herrmann Chapters 1 – 12 Complete
TABLE OF CONTENTS
Chapter 1: A Framework for Financial Accounting
Chapter 2: The Accounting Cycle: During the Period
Chapter 3: The Accounting Cycle: End of the Period
Chapter 4: Cash and Internal Controls
Chapter 5: Receivables and Sales
Chapter 6: Inventory and Cost of Goods Sold
Chapter 7: Long-Term Assets
Chapter 8: Current Liabilities
Chapter 9: Long-Term Liabilities
Chapter 10: Stockholders’ Equity
Chapter 11: Statement of Cash Flows
Chapter 12: Financial Statement Analysis
,Chapter 1 A Framework for Financial Accounting
1) Accounting is a system of maintaining records of a company's operations and
communicatingthat 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
ThinkingAICPA: BB
Critical Thinking
2) Accounting information is used by investors to decide whether to invest in a
company's stock.
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
ThinkingAICPA: BB
Critical Thinking
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
Learning Objective: 01-01 Describe the two primary functions of financial
accounting.Bloom's: Remember
AACSB: Reflective
ThinkingAICPA: BB
Critical Thinking
, 4) The primary functions of financial accounting are to measure business activities
of a companyand 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
ThinkingAICPA: BB
Critical Thinking
