Test Bank for Intermediate Accounting, 2025 Release by David Spiceland | Chapter 1 to 7

Answers Included

Chap 01 2025 Release - Spiceland
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The primary focus of financial accounting is on the financial information provided to present
and potential investors and creditors.
1) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Describe the function and primary focus of financial accounting.
Topic : Environment of financial accounting and reporting
Topic : Income statement--Single-step format
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-1 (Static) The primary focus of financial
accounting...



2) Financial reporting refers to the process of proving information to internal and external users.
2) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Describe the function and primary focus of financial accounting.
Topic : Environment of financial accounting and reporting
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-2 (Static) Financial reporting refers...




1

,3) The capital markets provide a mechanism to help our economy allocate resources efficiently
and are comprised of all investors and creditors.
3) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Evergreen Release : Updated 2025
Gradable : automatic
Learning Objective : 01-01 Describe the function and primary focus of financial accounting.
Topic : Environment of financial accounting and reporting
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-3 (Static) The capital markets provide a...



4) The rate of return generated on the purchase of stock is calculated as the sum of the
dividends and share price appreciation divided by the amount of the initial investment.
4) ______
⊚ true
⊚ false

Question Details
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Describe the function and primary focus of financial accounting.
Topic : Environment of financial accounting and reporting
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-4 (Static) The rate of return generated...




2

,5) Accrual accounting attempts to measure revenues and expenses that occurred during
accounting periods so they equal net operating cash flow.
5) ______
⊚ true
⊚ false

Question Details
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Understand
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-02 Explain the difference between cash and accrual accounting.
Topic : Cash versus accrual accounting
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-5 (Static) Accrual accounting attempts to
measure...



6) The FASB is currently the public-sector organization responsible for setting accounting
standards in the United States.
6) ______
⊚ true
⊚ false

Question Details
AICPA : BB Legal
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-03 Define generally accepted accounting principles (GAAP) and discuss the his
Topic : Development of accounting and reporting standards
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-6 (Static) The FASB is currently the public-
sector organization...




3

, 7) The FASB’s due process invites various interested parties to indicate their opinions about
whether financial accounting standards should be changed.
7) ______
⊚ true
⊚ false

Question Details
AICPA : BB Legal
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-04 Explain why establishing accounting standards is characterized as a politi
Topic : GAAP--Standard-setting process
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-7 (Static) The FASB’s due process
invites various interested...



8) Accounting for stock-based compensation is an area in which the FASB has received little
political interference.
8) ______
⊚ true
⊚ false

Question Details
AICPA : BB Legal
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-04 Explain why establishing accounting standards is characterized as a politi
Topic : GAAP--Standard-setting process
Type : Static
Source : Chapter 01 Test Bank - Algorithmic and Static > TB TF Qu. 1-8 (Static) Accounting for stock-based
compensation is...




4