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,TEST BANK FOR z z
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herrma
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nn
Chapter 1 z A Framework for Financial Accounting
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1) Accounting is a system of maintaining records of a company's operations and communicating tha
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t information to decision makers.
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Answer: TRUE Diffi z z
culty: 1 Easy z z
Topic: Defining Accounting z
Learning Objective: 01- z
01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking z z
AICPA: BB Critical Thinking z z
2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE Diffi z z
culty: 1 Easy z z
Topic: Defining Accounting z
Learning Objective: 01- z
01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking z z
AICPA: BB Critical Thinking z z
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE z z
Explanation:
Creditors lend money to a company. z z z z z z
Difficulty: 1 Easy z z
Topic: Defining Accounting z
Learning Objective: 01- z
01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking z z
AICPA: BB Critical Thinking z z
4) The primary functions of financial accounting are to measure business activities of a company an
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d to communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE z z
Explanation:
Financial accounting primarily serves to provide information to external parties. D
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ifficulty: 2 Medium z z
Topic: Defining Accounting z
, Learning Objective:
z 01-01 Describe the two primary functions of financial accounting.
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,TEST BANK FOR z z
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herrma
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nn
Chapter 1 z A Framework for Financial Accounting
z z z z
1) Accounting is a system of maintaining records of a company's operations and communicating tha
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t information to decision makers.
z z z z
Answer: TRUE Diffi z z
culty: 1 Easy z z
Topic: Defining Accounting z
Learning Objective: 01- z
01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking z z
AICPA: BB Critical Thinking z z
2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE Diffi z z
culty: 1 Easy z z
Topic: Defining Accounting z
Learning Objective: 01- z
01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking z z
AICPA: BB Critical Thinking z z
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE z z
Explanation:
Creditors lend money to a company. z z z z z z
Difficulty: 1 Easy z z
Topic: Defining Accounting z
Learning Objective: 01- z
01 Describe the two primary functions of financial accounting. Bloom's: Remember
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AACSB:
Reflective Thinking z z
AICPA: BB Critical Thinking z z
4) The primary functions of financial accounting are to measure business activities of a company an
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d to communicate those measurements to internal parties for decision-making purposes.
z z z z z z z z z z
Answer: FALSE z z
Explanation:
Financial accounting primarily serves to provide information to external parties. D
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ifficulty: 2 Medium z z
Topic: Defining Accounting z
, Learning Objective:
z 01-01 Describe the two primary functions of financial accounting.
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