TEST BANK Financial Accounting, 6th Edition Chapters 1 – 12 Complete By David Spiceland, Wayne Thomas and Don Herrmann

TESTBANK c




FinancialAccounting,6thEdition
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Chapters1–12Complete
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By David Spiceland, WayneThomasandDonHerrmann
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,TABLEOFCONTENTS
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Chapter1:AFrameworkforFinancialAccounting Chapter2:The
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AccountingCycle:DuringthePeriod Chapter3:TheAccountingCycle:End
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ofthePeriod Chapter4:CashandInternalControls
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Chapter5:ReceivablesandSales
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Chapter6:InventoryandCostofGoodsSold Chapter7:Long-TermAssets
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Chapter8:CurrentLiabilities Chapter9:Long-Term
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Liabilities Chapter10:Stockholders’Equity
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c Chapter11:StatementofCashFlows
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Chapter12:FinancialStatementAnalysis
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,Chapter1 AFrameworkforFinancialAccounting
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1) Accountingisasystem ofmaintaining recordsofacompany'soperationsandcommunicating that
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information todecisionmakers.
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Answer:TRUE c




Difficulty:1Easy
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Topic: DefiningAccounting
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LearningObjective: 01-01Describethetwoprimaryfunctionsoffinancialaccounting.Bloom's:
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cRemember
AACSB:ReflectiveThinking
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AICPA: BBCritical Thinking
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2) Accountinginformation isusedbyinvestorstodecidewhethertoinvestinacompany'sstock.
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Answer:TRUE c




Difficulty:1Easy
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Topic: DefiningAccounting
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LearningObjective: 01-01Describethetwoprimaryfunctionsoffinancialaccounting.Bloom's:
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cRemember
AACSB:ReflectiveThinking
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AICPA: BBCritical Thinking
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3) Accountinginformation isusedbycreditorstodecidewhethertoinvestinacompany'sstock.
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Answer: FALSE c




Explanation: Creditorslendmoney toacompany. c c c c c c




Difficulty:1Easy
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Topic: DefiningAccounting
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LearningObjective: 01-01Describethetwoprimaryfunctionsoffinancialaccounting.Bloom's:
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cRemember
AACSB:ReflectiveThinking
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AICPA: BBCritical Thinking
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4) Theprimaryfunctionsoffinancial accountingaretomeasurebusinessactivitiesofacompany andto
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communicatethosemeasurementstointernal partiesfordecision-makingpurposes.
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Answer: FALSE c




Explanation:Financialaccounting primarilyservestoprovide informationto externalparties.
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cDifficulty:2Medium c c




Topic: DefiningAccounting
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LearningObjective: 01-01Describethetwoprimaryfunctionsoffinancialaccounting.Bloom's:
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cUnderstand
AACSB:ReflectiveThinking
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AICPA: BBCritical Thinking
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, 5) Financingactivitiesaretransactionsinvolvingexternalsourcesoffunding.
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Answer:TRUE c




Difficulty:1Easy
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Topic: MeasuringBusinessActivities
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LearningObjective: 01-02Understandthebusinessactivitiesthatfinancialaccountingmeasures.
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cBloom's: RememberAACSB:c c c




ReflectiveThinkingAICPA: FN c c




Measurement
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6) Investingactivitiesincludethepurchaseandsaleoflong-termresources.
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Answer:TRUE c




Difficulty:1Easy
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Topic: MeasuringBusinessActivities
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LearningObjective: 01-02Understandthebusinessactivitiesthatfinancialaccountingmeasures.
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cBloom's: RememberAACSB:c c c




ReflectiveThinkingAICPA: FN c c




Measurement
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7) Operatingactivitiesincludetransactionsthatrelatetotheprimaryoperationsofthecompany.
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Answer:TRUE c




Difficulty:1Easy
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Topic: MeasuringBusinessActivities
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LearningObjective: 01-02Understandthebusinessactivitiesthatfinancialaccountingmeasures.
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cBloom's: RememberAACSB:c c c




ReflectiveThinkingAICPA: FN c c




Measurement
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8) Acorporation isanentity thatislegally separatefromitsowners.
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Answer:TRUE c




Difficulty:1Easy
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Topic: MeasuringBusinessActivities
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LearningObjective: 01-02Understandthebusinessactivitiesthatfinancialaccountingmeasures.
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cBloom's: RememberAACSB:c c c




ReflectiveThinkingAICPA: BB c c




CriticalThinking
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