TEST BANK FOR Financial Accounting 6th Edition by David Spiceland, Wayne M. Thomas, Don Herrmann ISBN: 978-1260786521 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!!NEW LATEST UPDATE!!!!!

,TEST BANK FOR dt dt




Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herrm
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Chapter 1 dt A Framework for Financial Accounting
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1) Accounting is a system of maintaining records of a company's operations and communicating th
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at information to decision makers.
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Answer: TRUE Diff d t dt



iculty: 1 Easy dt dt



Topic: Defining Accounting dt



Learning Objective: 01- dt



01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking dt dt



AICPA: BB Critical Thinking dt dt




2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE Diff d t dt



iculty: 1 Easy dt dt



Topic: Defining Accounting dt



Learning Objective: 01- dt



01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking dt dt



AICPA: BB Critical Thinking dt dt




3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE d t d t



Explanation:
Creditors lend money to a company. dt dt dt dt dt dt



Difficulty: 1 Easy dt dt



Topic: Defining Accounting dt



Learning Objective: 01- dt



01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking dt dt



AICPA: BB Critical Thinking dt dt




4) The primary functions of financial accounting are to measure business activities of a company an
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d to communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE d t d t



Explanation:
Financial accounting primarily serves to provide information to external parties. D dt dt dt dt dt dt dt dt dt dt



ifficulty: 2 Medium dt dt



Topic: Defining Accounting dt

,Learning Objective:
dt 01-01 Describe the two primary functions of financial accounting.
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, Bloom's:
Understand AACSB: dt




Reflective Thinking dt dt dt



AICPA: BB Critical Thinking dt dt




5) Financing activities are transactions involving external sources of funding.
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Answer: TRUE Diff d t dt



iculty: 1 Easy
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Topic: Measuring Business Activities dt dt



Learning Objective: 01- dt



02 Understand the business activities that financial accounting measures. Bloom's: Remember
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AACSB:
Reflective Thinking dt dt



AICPA: FN Measurement dt




6) Investing activities include the purchase and sale of long-term resources.
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Answer: TRUE Diff d t dt



iculty: 1 Easy
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Topic: Measuring Business Activities dt dt



Learning Objective: 01- dt



02 Understand the business activities that financial accounting measures. Bloom's: Remember
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AACSB:
Reflective Thinking dt dt



AICPA: FN Measurement dt




7) Operating activities include transactions that relate to the primary operations of the company.
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Answer: TRUE Diff d t dt



iculty: 1 Easy
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Topic: Measuring Business Activities dt dt



Learning Objective: 01- dt



02 Understand the business activities that financial accounting measures. Bloom's: Remember
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AACSB:
Reflective Thinking dt dt



AICPA: FN Measurement dt




8) A corporation is an entity that is legally separate from its owners.
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Answer: TRUE Diff d t dt



iculty: 1 Easy
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Topic: Measuring Business Activities dt dt



Learning Objective: 01- dt



02 Understand the business activities that financial accounting measures. Bloom's: Remember
dt dt dt dt dt dt dt dt dt



AACSB:
Reflective Thinking dt dt



AICPA: BB Critical Thinking dt dt