Test Bank For Intermediate Accounting,
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key
Test name: chapter 1
1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive va lue Information is useful in 1
projecting cash flows.
2. Relevance Pertinent to the decision at 2
hand.
3. Distribution to Information is available prior 5
owners to the decision.
4. Confirmatory Decrease in equity due to 3
value transfers to owners.
5. Timeliness Information confirms 4
expectations.
2)
TERM PHRASE Term number
that matches
the phrase.
1. Gain Along with relevance, a 5
fundamental decision-specific
quality.
2. Materiality Results if an asset is sold for 1
more than book value.
3. Completeness Contains all information 3
necessary for faithful
representation.
4. Comprehensive The change in equity from 4
income nonowner transactions.
Version 1 2
, 5. Faithful Concerns the decision-making 2
representation impact of both the amount and
nature of an item.
3)
TERM PHRASE Term number
that40matche
s4t
0 he40phrase
.
1. Neutrality Important40in40analysis40between 2
firms.
2. Comparability Accounting40information40should 1
be40unbiased.
3. Consistency The40decision40to40include40an 5
amount40in40the40financi
al4s
0 tatements.
4. Cost-effectiveness4 0 Applying40the40same40accounting 3
practices40over40time.
5. Recognition Considers40the40value40of40using 4
information40relative40to40cost40
of4p
0 roviding40it.
4)
TERM PHRASE
Term40number40
that40matche
s4t
0 he40phrase
.
1. Monetary40uni Implies40consensus40among 2
t4a
0 ssumption different40observers.
2. Verifiability Assumes40all40transactions40can40be 3
identified40with40a40particul
ar4e
0 ntity.
3. Economic40entit Assumes40an40entity40will40continue 4
y4a
0 ssumption to40operate40indefinitely.
4. Going40concer Requires40reporting40the 5
n4a
0 ssumption financial40life40of40an40entity4
0in4d
0 iscrete40time40frames.
5. Periodicity40 Ignores40the40possibility40of 1
assumption inflation.
5)
TERM PHRASE Term40number
that40matche
s
Version 1 3
, the40phrase.
1.40Historical cost Basis40of40measurement40for40fix 1
ed
Version40 4
1
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key
Test name: chapter 1
1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive va lue Information is useful in 1
projecting cash flows.
2. Relevance Pertinent to the decision at 2
hand.
3. Distribution to Information is available prior 5
owners to the decision.
4. Confirmatory Decrease in equity due to 3
value transfers to owners.
5. Timeliness Information confirms 4
expectations.
2)
TERM PHRASE Term number
that matches
the phrase.
1. Gain Along with relevance, a 5
fundamental decision-specific
quality.
2. Materiality Results if an asset is sold for 1
more than book value.
3. Completeness Contains all information 3
necessary for faithful
representation.
4. Comprehensive The change in equity from 4
income nonowner transactions.
Version 1 2
, 5. Faithful Concerns the decision-making 2
representation impact of both the amount and
nature of an item.
3)
TERM PHRASE Term number
that40matche
s4t
0 he40phrase
.
1. Neutrality Important40in40analysis40between 2
firms.
2. Comparability Accounting40information40should 1
be40unbiased.
3. Consistency The40decision40to40include40an 5
amount40in40the40financi
al4s
0 tatements.
4. Cost-effectiveness4 0 Applying40the40same40accounting 3
practices40over40time.
5. Recognition Considers40the40value40of40using 4
information40relative40to40cost40
of4p
0 roviding40it.
4)
TERM PHRASE
Term40number40
that40matche
s4t
0 he40phrase
.
1. Monetary40uni Implies40consensus40among 2
t4a
0 ssumption different40observers.
2. Verifiability Assumes40all40transactions40can40be 3
identified40with40a40particul
ar4e
0 ntity.
3. Economic40entit Assumes40an40entity40will40continue 4
y4a
0 ssumption to40operate40indefinitely.
4. Going40concer Requires40reporting40the 5
n4a
0 ssumption financial40life40of40an40entity4
0in4d
0 iscrete40time40frames.
5. Periodicity40 Ignores40the40possibility40of 1
assumption inflation.
5)
TERM PHRASE Term40number
that40matche
s
Version 1 3
, the40phrase.
1.40Historical cost Basis40of40measurement40for40fix 1
ed
Version40 4
1
