TEST BANK For Financial Accounting, 6th Edition By David Spiceland, Wayne Thomas, Verified Chapters 1 - 12, Complete Newest Version

Test Bank For

Financial Accounting,
6th Edition By David Spiceland, Wayne Thomas

,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

,Test Bank For
Financial Accounting 6th Edition By David Spiceland, Wayne Thomas, Don
Herrmann
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. 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

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 Thinking
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
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

7) Operating Activities Include Transactions That Relate To The Primary Operations Of The

Company. 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

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