TEST BANK b
Financial Accounting, 6th Edition
b b b b
Chapters 1 – 12 Complete
b b b b
By David Spiceland, Wayne Thomas and Don Herrmann
b b b b b b b
,TABLE OF CONTENTS b b b
Chapter 1: A Framework for Financial Accounting
b b b b b b
Chapter 2: The Accounting Cycle: During the Period
b b b b b b b
Chapter 3: The Accounting Cycle: End of the Period
b b b b b b b b
Chapter 4: Cash and Internal Controls
b b b b b
Chapter 5: Receivables and Sales
b b b b
Chapter 6: Inventory and Cost of Goods Sold
b b b b b b b
Chapter 7: Long-Term Assets
b b b
Chapter 8: Current Liabilities
b b b
Chapter 9: Long-Term Liabilities
b b b
Chapter 10: Stockholders’ Equity
b b b
Chapter 11: Statement of Cash Flows
b b b b b
Chapter 12: Financial Statement Analysis
b b b b
,Chapter b1 b A bFramework bfor bFinancial bAccounting
1) Accounting bis ba bsystem bof bmaintaining brecords bof ba bcompany's boperations band bcommunicating
that binformation bto bdecision bmakers.
b
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember
AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b
2) Accounting binformation bis bused bby binvestors bto bdecide bwhether bto binvest bin ba bcompany's bstock.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember
AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b
3) Accounting binformation bis bused bby bcreditors bto bdecide bwhether bto binvest bin ba bcompany's bstock.
Answer: b FALSE
Explanation: bCreditors blend bmoney bto ba bcompany.
Difficulty: b1 bEasy
b
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember
AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b
4) The bprimary bfunctions bof bfinancial baccounting bare bto bmeasure bbusiness bactivities bof ba bcompany
and bto bcommunicate bthose bmeasurements bto binternal bparties bfor bdecision-making bpurposes.
b
Answer: b FALSE
Explanation: bFinancial baccounting bprimarily bserves bto bprovide binformation bto bexternal bparties.
Difficulty: b2 bMedium
b
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bUnderstand
AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b
, 5) Financing bactivities bare btransactions binvolving bexternal bsources bof bfunding.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking
AICPA: b FN bMeasurement
b
6) Investing bactivities binclude bthe bpurchase band bsale bof blong-term bresources.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking
AICPA: b FN bMeasurement
b
7) Operating bactivities binclude btransactions bthat brelate bto bthe bprimary boperations bof bthe bcompany.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking
AICPA: b FN bMeasurement
b
8) A bcorporation bis ban bentity bthat bis blegally bseparate bfrom bits bowners.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b b bRemember bAACSB:
bReflective bThinkingb AICPA:
b BB bCritical bThinking
Financial Accounting, 6th Edition
b b b b
Chapters 1 – 12 Complete
b b b b
By David Spiceland, Wayne Thomas and Don Herrmann
b b b b b b b
,TABLE OF CONTENTS b b b
Chapter 1: A Framework for Financial Accounting
b b b b b b
Chapter 2: The Accounting Cycle: During the Period
b b b b b b b
Chapter 3: The Accounting Cycle: End of the Period
b b b b b b b b
Chapter 4: Cash and Internal Controls
b b b b b
Chapter 5: Receivables and Sales
b b b b
Chapter 6: Inventory and Cost of Goods Sold
b b b b b b b
Chapter 7: Long-Term Assets
b b b
Chapter 8: Current Liabilities
b b b
Chapter 9: Long-Term Liabilities
b b b
Chapter 10: Stockholders’ Equity
b b b
Chapter 11: Statement of Cash Flows
b b b b b
Chapter 12: Financial Statement Analysis
b b b b
,Chapter b1 b A bFramework bfor bFinancial bAccounting
1) Accounting bis ba bsystem bof bmaintaining brecords bof ba bcompany's boperations band bcommunicating
that binformation bto bdecision bmakers.
b
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember
AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b
2) Accounting binformation bis bused bby binvestors bto bdecide bwhether bto binvest bin ba bcompany's bstock.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember
AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b
3) Accounting binformation bis bused bby bcreditors bto bdecide bwhether bto binvest bin ba bcompany's bstock.
Answer: b FALSE
Explanation: bCreditors blend bmoney bto ba bcompany.
Difficulty: b1 bEasy
b
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bRemember
AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b
4) The bprimary bfunctions bof bfinancial baccounting bare bto bmeasure bbusiness bactivities bof ba bcompany
and bto bcommunicate bthose bmeasurements bto binternal bparties bfor bdecision-making bpurposes.
b
Answer: b FALSE
Explanation: bFinancial baccounting bprimarily bserves bto bprovide binformation bto bexternal bparties.
Difficulty: b2 bMedium
b
Topic: b Defining bAccounting
Learning bObjective: b 01-01 bDescribe bthe btwo bprimary bfunctions bof bfinancial baccounting.bBloom's:
bUnderstand
AACSB: bReflective bThinking
AICPA: b BB bCritical bThinking
b
, 5) Financing bactivities bare btransactions binvolving bexternal bsources bof bfunding.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking
AICPA: b FN bMeasurement
b
6) Investing bactivities binclude bthe bpurchase band bsale bof blong-term bresources.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking
AICPA: b FN bMeasurement
b
7) Operating bactivities binclude btransactions bthat brelate bto bthe bprimary boperations bof bthe bcompany.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b Remember
bAACSB: b Reflective bThinking
AICPA: b FN bMeasurement
b
8) A bcorporation bis ban bentity bthat bis blegally bseparate bfrom bits bowners.
Answer: bTRUE
bDifficulty: b1 bEasy
Topic: b Measuring bBusiness bActivities
Learning bObjective: b 01-02 bUnderstand bthe bbusiness bactivities bthat bfinancial baccountingbmeasures.
Bloom's: b b bRemember bAACSB:
bReflective bThinkingb AICPA:
b BB bCritical bThinking
