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

,TEST BANK FOR km km



Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don H
km km km km km km km km km km



errmann

Chapter 1 km A Framework for Financial Accounting
km km km km




1) Accounting is a system of maintaining records of a company's operations and communic
km km km km km km km km km km km km


ating that information to decision makers.
km km km km km




Answer: TRUE Dik m km


fficulty: 1 Easy
km km


Topic: Defining Accounting km


Learning Objective: 01-
km


01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km


Remember
AACSB:
Reflective Thinking km k


mAICPA:
BB Critical Thinkin km km


g

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


.

Answer: TRUE Dik m km


fficulty: 1 Easy
km km


Topic: Defining Accounting km


Learning Objective: 01-
km


01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km


Remember
AACSB:
Reflective Thinking km k


mAICPA:
BB Critical Thinkin km km


g

3) Accounting information is used by creditors to decide whether to invest in a company's stock
km km km km km km km km km km km km km km


.

Answer: FALSE k m k m


Explanation:
Creditors lend money to a compan km km km km km


y. Difficulty: 1 Easy
km km km


Topic: Defining Accounting km


Learning Objective: 01-
km


01 Describe the two primary functions of financial accounting. Bloom's:
km km km km km km km km km


Remember
AACSB:
Reflective Thinking km k


mAICPA:

, BB Critical Thinkin
km km


g

4) The primary functions of financial accounting are to measure business activities of a com
km km km km km km km km km km km km km


pany and to communicate those measurements to internal parties for decision-
km km km km km km km km km km


making purposes.
km




Answer: FALSE k m k m


Explanation:
Financial accounting primarily serves to provide information to external part
km km km km km km km km km


ies. Difficulty: 2 Medium
km km km


Topic: Defining Accounting km


Learning Objective: 01-01 Describe the two primary functions of financial accounting.
km km km km km km km km km

, Bloom's:
Understand AACSB km


:
Reflective Thinking
m
k km k


AICPA:
m


BB Critical Thinkin
km km


g

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




Answer: TRUE Di
k m km


fficulty: 1 Easy
km km


Topic: Measuring Business Activities km km


Learning Objective: 01-
km


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


AACSB:
Reflective Thinking km k


mAICPA: FN Measurement km




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




Answer: TRUE Di
k m km


fficulty: 1 Easy
km km


Topic: Measuring Business Activities km km


Learning Objective: 01-
km


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


AACSB:
Reflective Thinking km k


mAICPA: FN Measurement km




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




Answer: TRUE Di
k m km


fficulty: 1 Easy
km km


Topic: Measuring Business Activities km km


Learning Objective: 01-
km


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


AACSB:
Reflective Thinking km k


mAICPA: FN Measurement km




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




Answer: TRUE Di
k m km


fficulty: 1 Easy
km km


Topic: Measuring Business Activities km km


Learning Objective: 01-
km


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


AACSB:
Reflective Thinking km k


mAICPA: