Test Bank For Intermediate Accounting,
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key
Test name: chapter 1
1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive va lue 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 relevance, a 5
fundamental decision-specific
quality.
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.
5. Periodicity Ignores the possibility of 1
assumption inflation.
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 afuture acash aflows. 5
3. Revenue Occurs awhen agoods aor aservices 3
arecognitio are atransferred ato
n athea
customer.
4. Full adisclosure Reporting aof aall ainformation 4
that acould aaffect adecisions.
5. Present avalue Application aof aGAAP asometimes 2
avoided aunder athis aconstraint.
6)
TERM PHRASE Term anumber
that
a
amatchesa
the
aphrase.
1. Financial Undermines arepresentational 3
aAccounting faithfulness aby abeing
aStandardsa
Board ainconsistent awith
2. Accounting aneutrality.
aPrinciples It aestablished aGAAP abefore athe 2
aBoard FASB.
3. Conservatism Its aEITF aIssues aare aGAAP awhen 1
entered ain athe
aAccountingaStandards
aCodification.
4. American It ahas athe aauthority ato aset aU.S. 5
aInstitute aof accounting astandards.
aCPAsa
(AICPA)
5. Securities aand It ais athe anational aorganization 4
aExchange for aCPAs ain athe aUnited aStates.
aCommission
7)
TERM PHRASE Term number
that matches
the phrase.
1. Expenses Net assets. 2
2. Equity Outflows of resources to 1
generate revenues.
3. Distributions to Cash dividends. 3
owners
4. Investments Claims aof acreditors aagainst 5
abya
owners the aassets aof aa abusiness.
5. Liabilities Transfers aof aresources ain 4
Version 1 4
11th Edition
by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1 1
,Answer Key
Test name: chapter 1
1)
TERM PHRASE Term number
that matches
the phrase.
1. Predictive va lue 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 relevance, a 5
fundamental decision-specific
quality.
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.
5. Periodicity Ignores the possibility of 1
assumption inflation.
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 afuture acash aflows. 5
3. Revenue Occurs awhen agoods aor aservices 3
arecognitio are atransferred ato
n athea
customer.
4. Full adisclosure Reporting aof aall ainformation 4
that acould aaffect adecisions.
5. Present avalue Application aof aGAAP asometimes 2
avoided aunder athis aconstraint.
6)
TERM PHRASE Term anumber
that
a
amatchesa
the
aphrase.
1. Financial Undermines arepresentational 3
aAccounting faithfulness aby abeing
aStandardsa
Board ainconsistent awith
2. Accounting aneutrality.
aPrinciples It aestablished aGAAP abefore athe 2
aBoard FASB.
3. Conservatism Its aEITF aIssues aare aGAAP awhen 1
entered ain athe
aAccountingaStandards
aCodification.
4. American It ahas athe aauthority ato aset aU.S. 5
aInstitute aof accounting astandards.
aCPAsa
(AICPA)
5. Securities aand It ais athe anational aorganization 4
aExchange for aCPAs ain athe aUnited aStates.
aCommission
7)
TERM PHRASE Term number
that matches
the phrase.
1. Expenses Net assets. 2
2. Equity Outflows of resources to 1
generate revenues.
3. Distributions to Cash dividends. 3
owners
4. Investments Claims aof acreditors aagainst 5
abya
owners the aassets aof aa abusiness.
5. Liabilities Transfers aof aresources ain 4
Version 1 4
