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

TESTBANK b




FinancialAccounting,6th Edition
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Chapters 1 – 12 Complete
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By David Spiceland, Wayne Thomas and Don Herrmann
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,TABLEOF CONTENTS b b b




Chapter 1: A Framework for Financial Accounting Chapter 2: The
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Accounting Cycle: During the Period Chapter 3: The Accounting Cycle: End
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of the Period Chapter 4: Cash and Internal Controls
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Chapter 5: Receivables and Sales
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Chapter 6: Inventory and Cost of Goods Sold Chapter 7: Long-Term
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Assets
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Chapter8: Current Liabilities Chapter9: Long-
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Term Liabilities Chapter10: Stockholders’ Equity
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b Chapter 11: Statement of Cash Flows
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Chapter12: Financial Statement Analysis
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,Chapter 1 A Framework for Financial Accounting
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1) Accounting is a system of maintaining records of a company's operations and communicating
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bthat information to decision makers.
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Answer: TRUE b




bDifficulty:1 Easy b b




Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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bRemember
AACSB: Reflective Thinking
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bAICPA: BB Critical Thinking
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2) Accounting information is used by investors to decide whether to invest in a company's stock.
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Answer: TRUE b




bDifficulty:1 Easy b b




Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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bRemember
AACSB: Reflective Thinking
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bAICPA: BB Critical Thinking
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3) Accounting information is used by creditors to decide whether to invest in a company's stock.
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Answer: FALSE b




Explanation: Creditors lend money to a company. b b b b b b




bDifficulty: 1 Easy b b




Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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bRemember
AACSB: Reflective Thinking
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bAICPA: BB Critical Thinking
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4) The primary functions of financial accounting are to measure business activities of a company
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and to communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE b




Explanation: Financial accounting primarily serves to provide information to external parties.
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bDifficulty: 2 Medium b b




Topic: Defining Accounting
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Learning Objective: 01-01 Describe the two primary functions of financial accounting.Bloom's:
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bUnderstand
AACSB: Reflective Thinking
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bAICPA: BB Critical Thinking
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, 5) Financing activities are transactions involving external sources of funding.
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Answer: TRUE b




bDifficulty:1 Easy b b




Topic: Measuring Business Activities
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Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
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bBloom's: Remember AACSB:
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ReflectiveThinkingAICPA: FN b b




Measurement
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6) Investing activities include the purchase and sale of long-term resources.
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Answer: TRUE b




bDifficulty:1 Easy b b




Topic: Measuring Business Activities
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Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
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bBloom's: Remember AACSB:
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ReflectiveThinkingAICPA: FN b b




Measurement
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7) Operating activities include transactions that relate to the primary operations of the company.
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Answer: TRUE b




bDifficulty:1 Easy b b




Topic: Measuring Business Activities
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Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
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bBloom's: Remember AACSB:
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ReflectiveThinkingAICPA: FN b b




Measurement
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8) A corporation is an entity that is legally separate from its owners.
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Answer: TRUE b




bDifficulty:1 Easy b b




Topic: Measuring Business Activities
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Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
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bBloom's: Remember AACSB:
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Reflective ThinkingAICPA: BBb b




Critical Thinking
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