Test Bank For Intermediate Accounting,
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key
Test name: chapter 1
1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive va lue Information is useful in 1
projecting cash flows.
2. Relevance Pertinent to the decision at 2
hand.
3. Distribution to Information is available prior 5
owners to the decision.
4. Confirmatory Decrease in equity due to 3
value transfers to owners.
5. Timeliness Information confirms 4
expectations.
2)
TERM PHRASE Term number
that matches
the phrase.
1. Gain Along with relevance, a 5
fundamental decision-specific
quality.
2. Materiality Results if an asset is sold for 1
more than book value.
3. Completeness Contains all information 3
necessary for faithful
representation.
4. Comprehensive The change in equity from 4
income nonowner transactions.
Version 1 2
, 5. LFaithful Concerns Lthe Ldecision-making 2
Lrepresentatio impact Lof Lboth Lthe Lamount
n LandL
nature Lof Lan Litem.
3)
TERM PHRASE Term Lnumber
that
L
LmatchesLthe
Lphrase.
1. Neutrality Important Lin Lanalysis Lbetween 2
firms.
2. Comparability Accounting Linformation Lshould 1
be Lunbiased.
3. Consistency The Ldecision Lto Linclude Lan 5
amount Lin Lthe
LfinancialLstatements.
4. Cost-effectiveness L Applying Lthe Lsame Laccounting 3
practices Lover Ltime.
5. Recognition Considers Lthe Lvalue Lof Lusing 4
information Lrelative Lto Lcost
LofL
providing Lit.
4)
TERM PHRASE Term Lnumber
that
L
LmatchesLthe
Lphrase.
1. Monetary Implies Lconsensus Lamong 2
LunitL
assumption different Lobservers.
2. Verifiability Assumes Lall Ltransactions Lcan Lbe 3
identified Lwith La
LparticularLentity.
3. Economic Assumes Lan Lentity Lwill Lcontinue 4
LentityL
assumption to Loperate Lindefinitely.
4. Going Requires Lreporting Lthe 5
Lconcern financial Llife Lof Lan Lentity
assumption
L LinL
discrete Ltime Lframes.
Ignores Lthe Lpossibility Lof 1
5. Periodicity inflation.
assumption
L
5)
TERM PHRASE Term Lnumber
Version 1 3
, that Lmatches
the Lphrase.
1. LHistorical cost Basis Lof Lmeasurement Lfor Lfixed 1
Version 1 4
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key
Test name: chapter 1
1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive va lue Information is useful in 1
projecting cash flows.
2. Relevance Pertinent to the decision at 2
hand.
3. Distribution to Information is available prior 5
owners to the decision.
4. Confirmatory Decrease in equity due to 3
value transfers to owners.
5. Timeliness Information confirms 4
expectations.
2)
TERM PHRASE Term number
that matches
the phrase.
1. Gain Along with relevance, a 5
fundamental decision-specific
quality.
2. Materiality Results if an asset is sold for 1
more than book value.
3. Completeness Contains all information 3
necessary for faithful
representation.
4. Comprehensive The change in equity from 4
income nonowner transactions.
Version 1 2
, 5. LFaithful Concerns Lthe Ldecision-making 2
Lrepresentatio impact Lof Lboth Lthe Lamount
n LandL
nature Lof Lan Litem.
3)
TERM PHRASE Term Lnumber
that
L
LmatchesLthe
Lphrase.
1. Neutrality Important Lin Lanalysis Lbetween 2
firms.
2. Comparability Accounting Linformation Lshould 1
be Lunbiased.
3. Consistency The Ldecision Lto Linclude Lan 5
amount Lin Lthe
LfinancialLstatements.
4. Cost-effectiveness L Applying Lthe Lsame Laccounting 3
practices Lover Ltime.
5. Recognition Considers Lthe Lvalue Lof Lusing 4
information Lrelative Lto Lcost
LofL
providing Lit.
4)
TERM PHRASE Term Lnumber
that
L
LmatchesLthe
Lphrase.
1. Monetary Implies Lconsensus Lamong 2
LunitL
assumption different Lobservers.
2. Verifiability Assumes Lall Ltransactions Lcan Lbe 3
identified Lwith La
LparticularLentity.
3. Economic Assumes Lan Lentity Lwill Lcontinue 4
LentityL
assumption to Loperate Lindefinitely.
4. Going Requires Lreporting Lthe 5
Lconcern financial Llife Lof Lan Lentity
assumption
L LinL
discrete Ltime Lframes.
Ignores Lthe Lpossibility Lof 1
5. Periodicity inflation.
assumption
L
5)
TERM PHRASE Term Lnumber
Version 1 3
, that Lmatches
the Lphrase.
1. LHistorical cost Basis Lof Lmeasurement Lfor Lfixed 1
Version 1 4
