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Financial Accounting, 6th Edition
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Chapters 1 – 12 Complete
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By David Spiceland, Wayne Thomas and Don Herrmann
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,TABLE OF CONTENTS vb vb vb
Chapter 1: A Framework for Financial Accounting
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Chapter 2: The Accounting Cycle: During the Period
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Chapter 3: The Accounting Cycle: End of the Period
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Chapter 4: Cash and Internal Controls
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Chapter 5: Receivables and Sales
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Chapter 6: Inventory and Cost of Goods Sold
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Chapter 7: Long-Term Assets
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Chapter 8: Current Liabilities
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Chapter 9: Long-Term Liabilities
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Chapter 10: Stockholders’ Equity
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Chapter 11: Statement of Cash Flows
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Chapter 12: Financial Statement Analysis
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,Chapter 1 vb v b A Framework for Financial Accounting
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1) Accounting is a system of maintaining records of a company's operations and
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communicatingthat information to decision makers.
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Answer: TRUE vb
Difficulty: 1 Easy
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Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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v
Remember
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AACSB: Reflective
vb
ThinkingAICPA: BB Critical
vb b
v v b vb
Thinking
vb
2) Accounting information is used by investors to decide whether to invest in a company's stock.
vb vb vb vb vb vb vb vb vb vb vb vb vb vb
Answer: TRUE vb
Difficulty: 1 Easy
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Topic: Defining Accounting
v b vb
Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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v
Remember
vb
AACSB: Reflective
vb
ThinkingAICPA: BB Critical
vb b
v v b vb
Thinking
vb
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE v b
Explanation: Creditors lend money to a
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company.Difficulty: 1 Easy
vb b
v vb vb
Topic: Defining Accounting
v b vb
Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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v
Remember
vb
AACSB: Reflective
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ThinkingAICPA: BB Critical
vb b
v v b vb
Thinking
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4) The primary functions of financial accounting are to measure business activities of a
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companyand to communicate those measurements to internal parties for decision-making
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purposes.
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Answer: FALSE v b
Explanation: Financial accounting primarily serves to provide information to external
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parties.Difficulty: 2 Medium
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v vb vb
Topic: Defining Accounting
v b vb
Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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v
Understand
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, AACSB: Reflective
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ThinkingAICPA: BB Critical
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v v b vb
Thinking
vb
Financial Accounting, 6th Edition
vb vb vb vb
Chapters 1 – 12 Complete
vb vb vb vb
By David Spiceland, Wayne Thomas and Don Herrmann
vb vb vb vb vb vb vb
,TABLE OF CONTENTS vb vb vb
Chapter 1: A Framework for Financial Accounting
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Chapter 2: The Accounting Cycle: During the Period
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Chapter 3: The Accounting Cycle: End of the Period
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Chapter 4: Cash and Internal Controls
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Chapter 5: Receivables and Sales
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Chapter 6: Inventory and Cost of Goods Sold
vb vb vb vb vb vb vb
Chapter 7: Long-Term Assets
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Chapter 8: Current Liabilities
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Chapter 9: Long-Term Liabilities
vb vb vb
Chapter 10: Stockholders’ Equity
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Chapter 11: Statement of Cash Flows
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Chapter 12: Financial Statement Analysis
vb vb vb vb
,Chapter 1 vb v b A Framework for Financial Accounting
vb vb vb vb
1) Accounting is a system of maintaining records of a company's operations and
vb vb vb vb vb vb vb vb vb vb vb
communicatingthat information to decision makers.
vb b
v vb vb vb vb
Answer: TRUE vb
Difficulty: 1 Easy
vb vb vb
Topic: Defining Accounting
v b vb
Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
vb v b vb vb vb vb vb vb vb vb b
v
Remember
vb
AACSB: Reflective
vb
ThinkingAICPA: BB Critical
vb b
v v b vb
Thinking
vb
2) Accounting information is used by investors to decide whether to invest in a company's stock.
vb vb vb vb vb vb vb vb vb vb vb vb vb vb
Answer: TRUE vb
Difficulty: 1 Easy
vb vb vb
Topic: Defining Accounting
v b vb
Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
vb v b vb vb vb vb vb vb vb vb b
v
Remember
vb
AACSB: Reflective
vb
ThinkingAICPA: BB Critical
vb b
v v b vb
Thinking
vb
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
vb vb vb vb vb vb vb vb vb vb vb vb vb vb
Answer: FALSE v b
Explanation: Creditors lend money to a
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company.Difficulty: 1 Easy
vb b
v vb vb
Topic: Defining Accounting
v b vb
Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
vb v b vb vb vb vb vb vb vb vb b
v
Remember
vb
AACSB: Reflective
vb
ThinkingAICPA: BB Critical
vb b
v v b vb
Thinking
vb
4) The primary functions of financial accounting are to measure business activities of a
vb vb vb vb vb vb vb vb vb vb vb vb
companyand to communicate those measurements to internal parties for decision-making
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v vb vb vb vb vb vb vb vb vb
purposes.
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Answer: FALSE v b
Explanation: Financial accounting primarily serves to provide information to external
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parties.Difficulty: 2 Medium
vb b
v vb vb
Topic: Defining Accounting
v b vb
Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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v
Understand
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, AACSB: Reflective
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ThinkingAICPA: BB Critical
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v v b vb
Thinking
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