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