Financial accounting 6th Edition By David Spiceland, Wayne Thomas and Don Herrmann

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FinancialAccounting,6thEdition
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Chapters 1 – 12 Complete
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By David Spiceland, Wayne Thomas and Don Herrmann
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,TABLEOFCONTENTS
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Chapter1:A FrameworkforFinancial Accounting Chapter2:The
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Accounting Cycle: During thePeriod Chapter 3:The Accounting Cycle: End
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ofthe Period Chapter 4: CashandInternal Controls
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Chapter5: ReceivablesandSales
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Chapter 6:Inventory and Costof Goods Sold Chapter7:Long-TermAssets
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Chapter8:Current Liabilities Chapter9:Long-Term
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Liabilities Chapter10:Stockholders’Equity
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s Chapter11: Statementof CashFlows
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Chapter12:FinancialStatementAnalysis
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,Chapter 1 A Framework for Financial Accounting
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1) Accounting is a system ofmaintaining records of a company's operations and communicating that
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information to decision makers.
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Answer: TRUE s




Difficulty:1Easy
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Topic: Defining Accounting
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Learning Objective: 01-01 Describe thetwo primary functions offinancial accounting.Bloom's:
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sRemember
AACSB: Reflective Thinking
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sAICPA: BB Critical Thinking
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2) Accounting information isused by investors to decide whether to invest in a company's stock.
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Answer: TRUE s




Difficulty:1Easy
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Topic: Defining Accounting
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Learning Objective: 01-01 Describe thetwo primary functions offinancial accounting.Bloom's:
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sRemember
AACSB: Reflective Thinking
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sAICPA: BB Critical Thinking
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3) Accounting information isused by creditors to decide whether to invest in a company's stock.
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Answer: FALSE s




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




Difficulty: 1 Easy
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Topic: Defining Accounting
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Learning Objective: 01-01 Describe thetwo primary functions offinancial accounting.Bloom's:
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sRemember
AACSB: Reflective Thinking
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sAICPA: BB Critical Thinking
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4) The primary functions of financial accounting are to measure business activities of a company and
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to communicate those measurements to internal partiesfor decision-making purposes.
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Answer: FALSE s




Explanation: Financial accounting primarily serves to provide information to external parties.
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sDifficulty: 2Medium s s




Topic: Defining Accounting
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Learning Objective: 01-01 Describe thetwo primary functions offinancial accounting.Bloom's:
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sUnderstand
AACSB: Reflective Thinking
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sAICPA: BB Critical Thinking
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, 5) Financing activities are transactions involving external sourcesof funding.
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Answer: TRUE s




Difficulty:1Easy
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Topic: Measuring BusinessActivities
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Learning Objective: 01-02 Understandthe business activities thatfinancial accountingmeasures.
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sBloom's: Remember AACSB:
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ReflectiveThinkingAICPA: FN s s




Measurement
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6) Investing activities include the purchase and sale oflong-term resources.
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Answer: TRUE s




Difficulty:1Easy
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Topic: Measuring BusinessActivities
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Learning Objective: 01-02 Understandthe business activities thatfinancial accountingmeasures.
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sBloom's: Remember AACSB:
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ReflectiveThinkingAICPA: FN s s




Measurement
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7) Operating activities include transactions that relate to the primary operationsof the company.
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Answer: TRUE s




Difficulty:1Easy
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Topic: Measuring BusinessActivities
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Learning Objective: 01-02 Understandthe business activities that financial accountingmeasures.
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sBloom's: Remember AACSB:
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ReflectiveThinkingAICPA: FN s s




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




Difficulty:1Easy
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Topic: Measuring BusinessActivities
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Learning Objective: 01-02 Understandthe business activities thatfinancial accountingmeasures.
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sBloom's: Remember AACSB:
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ReflectiveThinkingAICPA: BB s s




Critical Thinking
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