TEST BANK for Financial accounting 5th edition david spiceland 5th edition PDF

TEST BANK w




Financial Accounting, 6th Edition
w w w w




Chapters 1 – 12 Complete
w w w w




By David Spiceland, Wayne Thomas and Don Herrmann
w w w w w w w

,TABLE OF CONTENTS w w w




Chapter 1: A Framework for Financial Accounting
w w w w w w




Chapter 2: The Accounting Cycle: During the Period
w w w w w w w




Chapter 3: The Accounting Cycle: End of the Period
w w w w w w w w




Chapter 4: Cash and Internal Controls
w w w w w




Chapter 5: Receivables and Sales
w w w w




Chapter 6: Inventory and Cost of Goods Sold
w w w w w w w




Chapter 7: Long-Term Assets
w w w




Chapter 8: Current Liabilities
w w w




Chapter 9: Long-Term Liabilities
w w w




Chapter 10: Stockholders’ Equity
w w w




Chapter 11: Statement of Cash Flows
w w w w w




Chapter 12: Financial Statement Analysis
w w w w

,Chapter 1 A Framework for Financial Accounting
w w w w w w




1) Accounting is a system of maintaining records of a company's operations and communicatingthat
w w w w w w w w w w w w w




information to decision makers.
w w w w




Answer: TRUE w




Difficulty:1Easy
w w w




Topic: Defining Accounting
w w




Learning Objective: 01-01 Describe thetwo primary functions of financial accounting.Bloom's:
w w w w w w w w w w w




Remember
w




AACSB: Reflective Thinking
w w




AICPA: BB Critical Thinking
w w w w




2) Accounting information is used by investors to decide whether to invest in a company's stock.
w w w w w w w w w w w w w w




Answer: TRUE w




Difficulty:1Easy
w w w




Topic: Defining Accounting
w w




Learning Objective: 01-01 Describe thetwo primary functions of financial accounting.Bloom's:
w w w w w w w w w w w




Remember
w




AACSB: Reflective Thinking
w w




AICPA: BB Critical Thinking
w w w w




3) Accounting information is used by creditors to decide whether to invest in acompany's stock.
w w w w w w w w w w w w w w




Answer: FALSE w




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




Difficulty: 1 Easy
w w w




Topic: Defining Accounting
w w




Learning Objective: 01-01 Describe thetwo primary functions of financial accounting.Bloom's:
w w w w w w w w w w w




Remember
w




AACSB: Reflective Thinking
w w




AICPA: BB Critical Thinking
w w w w




4) The primary functions of financial accounting are to measure business activities of a companyand to
w w w w w w w w w w w w w w w




communicate those measurements to internal parties for decision-making purposes.
w w w w w w w w w




Answer: FALSE w




Explanation: Financial accounting primarily serves to provide information to external parties.Difficulty:
w w w w w w w w w w w




2 Medium
w w




Topic: Defining Accounting
w w




Learning Objective: 01-01 Describe thetwo primary functions of financial accounting.Bloom's:
w w w w w w w w w w w




Understand
w




AACSB: Reflective Thinking
w w




AICPA: BB Critical Thinking
w w w w

, 5) Financing activities are transactions involving external sources of funding.
w w w w w w w w




Answer: TRUE w




Difficulty:1Easy
w w w




Topic: Measuring Business Activities
w w w




Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
w w w w w w w w w w




Bloom's: Remember AACSB: w w




Reflective ThinkingAICPA:
w w w




wFN Measurement
w




6) Investing activities include the purchase and sale of long-term resources.
w w w w w w w w w




Answer: TRUE w




Difficulty:1Easy
w w w




Topic: Measuring Business Activities
w w w




Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
w w w w w w w w w w




Bloom's: Remember AACSB: w w




Reflective ThinkingAICPA:
w w w




wFN Measurement
w




7) Operating activities include transactions that relate to the primary operations of the company.
w w w w w w w w w w w w




Answer: TRUE w




Difficulty:1Easy
w w w




Topic: Measuring Business Activities
w w w




Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
w w w w w w w w w w




Bloom's: Remember AACSB: w w




Reflective ThinkingAICPA:
w w w




wFN Measurement
w




8) A corporation is an entity that is legally separate from its owners.
w w w w w w w w w w w




Answer: TRUE w




Difficulty:1Easy
w w w




Topic: Measuring Business Activities
w w w




Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
w w w w w w w w w w




Bloom's: Remember AACSB:www w




Reflective ThinkingAICPA:
w w w




BBCritical Thinking
w w w