Test Bank For Intermediate Accounting,
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key D
Test name: chapter 1
D D D
1)
D
TERM PHRASE Term numberD
that matches
D D
the phrase.
D D
1. Predictive va lue
D D Information is useful in D D D 1
projecting cash flows. D D
2. Relevance
D Pertinent to the decision at D D D D 2
hand.
3. Distribution to
D Information is available prior D D D 5
owners to the decision.
D D
4. Confirmatory
D Decrease in equity due to
D D D D 3
value transfers to owners.
D D D
5. Timeliness
D Information confirms D 4
expectations.
2)
TERM PHRASE Term numberD
that matches
D D
the phrase.
D
1. Gain
D Along with relevance, a
D D D 5
fundamental decision-specific D
quality.
D
2. Materiality
D Results if an asset is sold
D D D D D for 1
more than book value.
D D D
3. Completeness
D Contains all informationD D 3
necessary for faithful D D
representation.
4. Comprehensive
D The change in equity from
D D D D 4
income nonowner transactions. D
Version 1 2
, 5. Faithful
D Concerns the decision-making D D 2
representatio
D impact of both the amount and
D D D D D
n nature of an item.
D D D D
3)
TERM PHRASE Term number D
that matches
D D
the phrase.
D D
1. Neutrality Important in analysis between D D D 2
firms.
2. Comparability Accounting information should D D 1
be unbiased.
D
3. Consistency The decision to include an
D D D D 5
amount in the financial
D D D
statements.
D
4. Cost-effectiveness D Applying the same accounting D D D 3
practices over time. D D
5. Recognition Considers the value of using D D D D 4
information relative to cost of D D D D
providing it.
D D
4)
TERM PHRASE Term number D
that matches
D D
the phrase.
D D
1. Monetary unit
D Implies consensus among D D 2
assumption
D different observers. D
2. Verifiability Assumes all transactions can be
D D D D 3
identified with a particular D D D
entity.
D
3. Economic entity
D Assumes an entity will continue
D D D D 4
assumption
D to operate indefinitely.
D D
4. Going concern
D Requires reporting the D D 5
assumption
D financial life of an entity in D D D D D
discrete time frames.
D D D
5. Periodicity Ignores the possibility of D D D 1
assumption
D inflation.
5)
TERM PHRASE Term number D
that matchesD
the phrase.
D
1. Historical cost
D Basis of measurement for fixed
D D D D 1
Version 1 3
, assets.
2. Materiality Discounts future cash flows. D D D 5
3. Revenue Occurs when goods or services
D D D D 3
recognitio
D are transferred to the
D D D
n customer.
D
4. Full disclosure
D Reporting of all information D D D 4
that could affect decisions.
D D D
5. Present value D Application of GAAP sometimes D D D 2
avoided under this constraint. D D D
6)
TERM PHRASE Term numberD
that matches
D D
the phrase.
D D
1. Financial Undermines representational D 3
Accounting
D faithfulness by being D D
StandardsBoard
D D inconsistent with neutrality.
D D D
2. Accounting It established GAAP before the
D D D D 2
Principles Board
D D FASB.
3. Conservatism Its EITF Issues are GAAP when
D D D D D 1
entered in the Accounting D D D
Standards Codification.
D D
4. American It has the authority to set U.S.
D D D D D D 5
Institute of CPAs
D D D accounting standards. D
(AICPA)
D
5. Securities and D It is the national organization
D D D D 4
Exchange Commission
D D for CPAs in the United States.
D D D D D
7)
TERM PHRASE Term number
that matches
the phrase.
1. Expenses Net assets. 2
2. Equity Outflows of resources to 1
generate revenues.
3. Distributions to Cash dividends. 3
owners
4. Investments by D Claims of creditors against D D D 5
owners
D the assets of a business.
D D D D
5. Liabilities Transfers of resources in D D D 4
exchange for common and D D D
preferred stock.
D D
Version 1 4
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key D
Test name: chapter 1
D D D
1)
D
TERM PHRASE Term numberD
that matches
D D
the phrase.
D D
1. Predictive va lue
D D Information is useful in D D D 1
projecting cash flows. D D
2. Relevance
D Pertinent to the decision at D D D D 2
hand.
3. Distribution to
D Information is available prior D D D 5
owners to the decision.
D D
4. Confirmatory
D Decrease in equity due to
D D D D 3
value transfers to owners.
D D D
5. Timeliness
D Information confirms D 4
expectations.
2)
TERM PHRASE Term numberD
that matches
D D
the phrase.
D
1. Gain
D Along with relevance, a
D D D 5
fundamental decision-specific D
quality.
D
2. Materiality
D Results if an asset is sold
D D D D D for 1
more than book value.
D D D
3. Completeness
D Contains all informationD D 3
necessary for faithful D D
representation.
4. Comprehensive
D The change in equity from
D D D D 4
income nonowner transactions. D
Version 1 2
, 5. Faithful
D Concerns the decision-making D D 2
representatio
D impact of both the amount and
D D D D D
n nature of an item.
D D D D
3)
TERM PHRASE Term number D
that matches
D D
the phrase.
D D
1. Neutrality Important in analysis between D D D 2
firms.
2. Comparability Accounting information should D D 1
be unbiased.
D
3. Consistency The decision to include an
D D D D 5
amount in the financial
D D D
statements.
D
4. Cost-effectiveness D Applying the same accounting D D D 3
practices over time. D D
5. Recognition Considers the value of using D D D D 4
information relative to cost of D D D D
providing it.
D D
4)
TERM PHRASE Term number D
that matches
D D
the phrase.
D D
1. Monetary unit
D Implies consensus among D D 2
assumption
D different observers. D
2. Verifiability Assumes all transactions can be
D D D D 3
identified with a particular D D D
entity.
D
3. Economic entity
D Assumes an entity will continue
D D D D 4
assumption
D to operate indefinitely.
D D
4. Going concern
D Requires reporting the D D 5
assumption
D financial life of an entity in D D D D D
discrete time frames.
D D D
5. Periodicity Ignores the possibility of D D D 1
assumption
D inflation.
5)
TERM PHRASE Term number D
that matchesD
the phrase.
D
1. Historical cost
D Basis of measurement for fixed
D D D D 1
Version 1 3
, assets.
2. Materiality Discounts future cash flows. D D D 5
3. Revenue Occurs when goods or services
D D D D 3
recognitio
D are transferred to the
D D D
n customer.
D
4. Full disclosure
D Reporting of all information D D D 4
that could affect decisions.
D D D
5. Present value D Application of GAAP sometimes D D D 2
avoided under this constraint. D D D
6)
TERM PHRASE Term numberD
that matches
D D
the phrase.
D D
1. Financial Undermines representational D 3
Accounting
D faithfulness by being D D
StandardsBoard
D D inconsistent with neutrality.
D D D
2. Accounting It established GAAP before the
D D D D 2
Principles Board
D D FASB.
3. Conservatism Its EITF Issues are GAAP when
D D D D D 1
entered in the Accounting D D D
Standards Codification.
D D
4. American It has the authority to set U.S.
D D D D D D 5
Institute of CPAs
D D D accounting standards. D
(AICPA)
D
5. Securities and D It is the national organization
D D D D 4
Exchange Commission
D D for CPAs in the United States.
D D D D D
7)
TERM PHRASE Term number
that matches
the phrase.
1. Expenses Net assets. 2
2. Equity Outflows of resources to 1
generate revenues.
3. Distributions to Cash dividends. 3
owners
4. Investments by D Claims of creditors against D D D 5
owners
D the assets of a business.
D D D D
5. Liabilities Transfers of resources in D D D 4
exchange for common and D D D
preferred stock.
D D
Version 1 4
