Test Bank
Financial Accounting,
By David Spiceland, Wayne Thomas
6th Edition
,Table Of Contents
Chapter 1: A Framework For Financial Accounting
Chapter 2: The Accounting Cycle: During The Period
Chapter 3: The Accounting Cycle: End Of The Period
Chapter 4: Cash And Internal Controls
Chapter 5: Receivables And Sales
Chapter 6: Inventory And Cost Of Goods Sold
Chapter 7: Long-Term Assets
Chapter 8: Current Liabilities
Chapter 9: Long-Term Liabilities
Chapter 10: Stockholders’ Equity
Chapter 11: Statement Of Cash Flows
Chapter 12: Financial Statement Analysis
,Test Bank For
Financial Accounting 6th Edition By David Spiceland, Wayne Thomas, Don
Herrmann
Chapter 1 A Framework For Financial Accounting
1) Accounting Is A System Of Maintaining Records Of A Company's Operations And
CommunicatingThat Information To Decision Makers.
Answer: True
Difficulty: 1 Easy
Topic: Defining Accounting
Learning Objective: 01-01 Describe The Two Primary Functions Of Financial
Accounting.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Bb Critical Thinking
2) Accounting Information Is Used By Investors To Decide Whether To Invest In A Company's
Stock.
Answer: True
Difficulty: 1 Easy
Topic: Defining Accounting
Learning Objective: 01-01 Describe The Two Primary Functions Of Financial
Accounting.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Bb Critical Thinking
3) Accounting Information Is Used By Creditors To Decide Whether To Invest In A Company's
Stock.
Answer: False
Explanation: Creditors Lend Money To A
Company.Difficulty: 1 Easy
Topic: Defining Accounting
Learning Objective: 01-01 Describe The Two Primary Functions Of Financial
Accounting.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Bb Critical Thinking
4) The Primary Functions Of Financial Accounting Are To Measure Business Activities Of A
CompanyAnd To Communicate Those Measurements To Internal Parties For Decision-Making
Purposes.
Answer: False
Explanation: Financial Accounting Primarily Serves To Provide Information To External
Parties.Difficulty: 2 Medium
Topic: Defining Accounting
Learning Objective: 01-01 Describe The Two Primary Functions Of Financial Accounting.
, Bloom's: Understand Aacsb:
Reflective Thinking
Aicpa: Bb Critical Thinking
5) Financing Activities Are Transactions Involving External Sources Of Funding.
Answer: True
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand The Business Activities That Financial Accounting
Measures.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Fn Measurement
6) Investing Activities Include The Purchase And Sale Of Long-Term Resources.
Answer: True
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand The Business Activities That Financial Accounting
Measures.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Fn Measurement
7) Operating Activities Include Transactions That Relate To The Primary Operations Of The
Company.
Answer: True
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand The Business Activities That Financial Accounting
Measures.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Fn Measurement
8) A Corporation Is An Entity That Is Legally Separate From Its Owners.
Answer: True
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand The Business Activities That Financial Accounting
Measures.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Bb Critical Thinking
Financial Accounting,
By David Spiceland, Wayne Thomas
6th Edition
,Table Of Contents
Chapter 1: A Framework For Financial Accounting
Chapter 2: The Accounting Cycle: During The Period
Chapter 3: The Accounting Cycle: End Of The Period
Chapter 4: Cash And Internal Controls
Chapter 5: Receivables And Sales
Chapter 6: Inventory And Cost Of Goods Sold
Chapter 7: Long-Term Assets
Chapter 8: Current Liabilities
Chapter 9: Long-Term Liabilities
Chapter 10: Stockholders’ Equity
Chapter 11: Statement Of Cash Flows
Chapter 12: Financial Statement Analysis
,Test Bank For
Financial Accounting 6th Edition By David Spiceland, Wayne Thomas, Don
Herrmann
Chapter 1 A Framework For Financial Accounting
1) Accounting Is A System Of Maintaining Records Of A Company's Operations And
CommunicatingThat Information To Decision Makers.
Answer: True
Difficulty: 1 Easy
Topic: Defining Accounting
Learning Objective: 01-01 Describe The Two Primary Functions Of Financial
Accounting.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Bb Critical Thinking
2) Accounting Information Is Used By Investors To Decide Whether To Invest In A Company's
Stock.
Answer: True
Difficulty: 1 Easy
Topic: Defining Accounting
Learning Objective: 01-01 Describe The Two Primary Functions Of Financial
Accounting.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Bb Critical Thinking
3) Accounting Information Is Used By Creditors To Decide Whether To Invest In A Company's
Stock.
Answer: False
Explanation: Creditors Lend Money To A
Company.Difficulty: 1 Easy
Topic: Defining Accounting
Learning Objective: 01-01 Describe The Two Primary Functions Of Financial
Accounting.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Bb Critical Thinking
4) The Primary Functions Of Financial Accounting Are To Measure Business Activities Of A
CompanyAnd To Communicate Those Measurements To Internal Parties For Decision-Making
Purposes.
Answer: False
Explanation: Financial Accounting Primarily Serves To Provide Information To External
Parties.Difficulty: 2 Medium
Topic: Defining Accounting
Learning Objective: 01-01 Describe The Two Primary Functions Of Financial Accounting.
, Bloom's: Understand Aacsb:
Reflective Thinking
Aicpa: Bb Critical Thinking
5) Financing Activities Are Transactions Involving External Sources Of Funding.
Answer: True
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand The Business Activities That Financial Accounting
Measures.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Fn Measurement
6) Investing Activities Include The Purchase And Sale Of Long-Term Resources.
Answer: True
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand The Business Activities That Financial Accounting
Measures.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Fn Measurement
7) Operating Activities Include Transactions That Relate To The Primary Operations Of The
Company.
Answer: True
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand The Business Activities That Financial Accounting
Measures.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Fn Measurement
8) A Corporation Is An Entity That Is Legally Separate From Its Owners.
Answer: True
Difficulty: 1 Easy
Topic: Measuring Business Activities
Learning Objective: 01-02 Understand The Business Activities That Financial Accounting
Measures.Bloom's: Remember
Aacsb: Reflective Thinking
Aicpa: Bb Critical Thinking
