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

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Financial Accounting 6th Edition by Spiceland CH01 ss ss ss ss ss ss




ESSAY. Write your answer in the space provided or on a separate sheet of
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paper.
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1) Match each business activity with its example. s s s s s s s s s s s s




1.A) Purchase office building. s s s s




2.B) Pay utilities.
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3.C) Receive investments from
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stockholders.Operating
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Financing pp



Investing
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2) Match each financial statement with the accounts reported on it:
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1.A) Dividends. s s




2.B) Assets and liabilities.
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3.C) Revenues and
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expenses.Income statement
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Statement of stockholders' ss ss




equityBalance sheet
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3) Match each organization to its role: s s s s s s s s s s




1.A) Ensure that auditors follow strict guidelines when conducting their audits.
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2.B) Independent, private-sector group that is primarily responsible for setting
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financialreporting rules in the United States.
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3.C) Develop a single set of high-quality, understandable global accounting standards.
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4.D) Enforce proper application of financial reporting rules for companies whose
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securities are publicly traded.
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Financial Accounting Standards Board s s s s s s




Public Company Accounting Oversight
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BoardInternational Accounting Standards
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Board Securities and Exchange
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Commission
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,DOWNLOAD THE Test Bank for Financial Accounting 6th Edition Spiceland
ss s ss ss s ss s ss ss




Financial Accounting 6th Edition by Spiceland CH01 ss ss ss ss ss ss




4) Match each qualitative characteristic with its definition:
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1.A) All information necessary to describe an item is reported.
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2.B) Information provides feedback on past activities.
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3.C) Information is presented in time to make useful decisions.
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4.D) Information is useful in helping to forecast future outcomes.
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5.E) Measurements that independent parties would agree upon.
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6.F) Information that does not bias the decision
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maker.Predictive value
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Confirmatory
valueVerifiability
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Timeliness
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Neutrality
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Completeness
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5) For each transaction, indicate whether a company would classify the related
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s s account as anasset, liability, stockholders' equity, dividend, revenue, or expense.
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Transactions Related Accounts ss




1. Receive cash from investors. ss ss ss Common Stock ss




2. Pay rent for the current period.
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3. Purchase office equipment. ss ss Equipment
4. Pay cash to stockholders.
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5. Provide services to customers. ss ss ss Service Revenue ss




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ss s ss ss s ss s ss ss




Financial Accounting 6th Edition by Spiceland CH01
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6) Account classifications include assets, liabilities, stockholders'
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s s equity, dividends,revenues, and expenses. Indicate the account
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s s classification for each account name. Account Classifications
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AccountsRelated Transactions s ss




1. s s Common Stock Sell common stock to
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investors.
2. s s Cash Receive cash ss



from customers ss pp


.
3. s s Salaries Payable Incur amounts owed to ss ss ss ss



employees.
4. s s Service Revenue Sell services to
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5. s s customers.Utilities Expense Incur cost of ss ss




6. s s utilities.
Supplies Purchase of ss




officesupplies.
7. Advertising Pay for cost ss ss ss



Expense
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8. ss Buildings Purchase building ss



foroperations. ss



9. ss
Accounts Payable Purchase supplies on ss ss ss



credit.
10.
Dividends Distribute cash
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tostockholders ss



.




7) Indicate whether a company would classify the transaction as
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s s financing, investing, oroperating.
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Transactions
1. Receive cash from investors.
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2. Pay rent for the current period.
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3. Purchase office equipment. ss ss




4. Pay cash to stockholders.
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5. Provide services to customers.
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