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TEST BANK FOR FINANCIAL ACCOUNTING 6TH EDITION BY DAVID SPICELAND, WAYNE THOMAS, DON HERRMANN
TEST BANK FOR FINANCIAL ACCOUNTING 6TH EDITION BY DAVID SPICELAND, WAYNE THOMAS, DON HERRMANN
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TEST BANK FORFINANCIAL ACCOUNTING 6TH EDITION BY DAVID SPICELAND,
WAYNE THOMAS, DONHERRMANN
Chapter v1 A vFramework vfor vFinancial vAccounting
1) Accounting vis va vsystem vof vmaintaining vrecords vof va vcompany's voperations vand
vcommunicatingv that vinformation vto vdecision vmakers.
Answer: v TRUE
vDifficulty: v1
vEasy
Topic: Defining vAccounting
Learning vObjective: 01-01 vDescribe vthe vtwo vprimary vfunctions vof vfinancial
vaccounting.v Bloom's: Remember
AACSB: Reflective vThinking
vAICPA: BB vCritical vThinking
2) Accounting vinformation vis vused vby vinvestors vto vdecide vwhether vto vinvest vin va vcompany's vstock.
Answer: v TRUE
vDifficulty: v1
vEasy
Topic: Defining vAccounting
Learning vObjective: 01-01 vDescribe vthe vtwo vprimary vfunctions vof vfinancial
vaccounting.v Bloom's: Remember
AACSB: Reflective vThinking
vAICPA: BB vCritical vThinking
3) Accounting vinformation vis vused vby vcreditors vto vdecide vwhether vto vinvest vin va vcompany's vstock.
Answer: v v vFALSE
Explanation: Creditors vlend vmoney vto va
vcompany.vDifficulty: v1 vEasy
Topic: Defining vAccounting
Learning vObjective: 01-01 vDescribe vthe vtwo vprimary vfunctions vof vfinancial
vaccounting.vBloom's: Remember
AACSB: Reflective vThinking
vAICPA: BB vCritical vThinking
4) The vprimary vfunctions vof vfinancial vaccounting vare vto vmeasure vbusiness vactivities vof va
vcompanyvand vto vcommunicate vthose vmeasurements vto vinternal vparties vfor v decision-making
vpurposes.
Answer: v FALSE
Explanation: Financial vaccounting vprimarily vserves vto vprovide vinformation vto vexternal
vparties.vDifficulty: v2 vMedium
Topic: Defining vAccounting
,Learning vObjective: 01-01 vDescribe vthe vtwo vprimary vfunctions vof vfinancial vaccounting.
,Bloom's: Understand
vAACSB: Reflective vThinking
vAICPA: BB vCritical vThinking
5) Financing vactivities vare vtransactions vinvolving vexternal vsources vof vfunding.
Answer: v TRUE
vDifficulty: v1
vEasy
Topic: Measuring vBusiness vActivities
Learning vObjective: 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial vaccounting
vmeasures.vBloom's: Remember
AACSB: Reflective
vThinkingvAICPA: FN
vMeasurement
6) Investing vactivities vinclude vthe vpurchase vand vsale vof vlong-term vresources.
Answer: v TRUE
vDifficulty: v1
vEasy
Topic: Measuring vBusiness vActivities
Learning vObjective: 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial vaccounting
vmeasures.vBloom's: Remember
AACSB: Reflective
vThinkingvAICPA: FN
vMeasurement
7) Operating vactivities vinclude vtransactions vthat vrelate vto vthe vprimary voperations vof vthe vcompany.
Answer: v TRUE
vDifficulty: v1
vEasy
Topic: Measuring vBusiness vActivities
Learning vObjective: 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial vaccounting
vmeasures.vBloom's: Remember
AACSB: Reflective
vThinkingvAICPA: FN
vMeasurement
8) A vcorporation vis van ventity vthat vis vlegally vseparate vfrom vits vowners.
Answer: v TRUE
vDifficulty: v1
vEasy
Topic: Measuring vBusiness vActivities
Learning vObjective: 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial vaccounting
vmeasures.vBloom's: Remember
AACSB: Reflective vThinking
vAICPA: BB vCritical vThinking
, 9) Cash, vinventory vfor vsale vto vcustomers, vsupplies, vand vbuildings vare vexamples vof vliabilities.
Answer: v FALSE
Explanation: vThese vare vexamples vof vassets.
vDifficulty: v2 vMedium
Topic: Measuring vBusiness vActivities
Learning vObjective: 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial vaccounting
vmeasures.vBloom's: Understand
AACSB: Reflective
vThinkingvAICPA: FN
vMeasurement
10) Amounts vowed vto vsuppliers, vemployees, vthe vgovernment vin vthe vform vof vtaxes, vand
vutilityvcompanies vare vexamples vof vliabilities.
Answer: v TRUE
vDifficulty: v2
vMedium
Topic: Measuring vBusiness vActivities
Learning vObjective: 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial vaccounting
vmeasures.vBloom's: Understand
AACSB: Reflective
vThinkingvAICPA: FN
vMeasurement
11) If vtotal vassets vof va vcompany vequal v$12,000 vand vtotal vstockholders' vequity vequals v$4,000,
vthenvtotal vliabilities vequal v$8,000.
Answer: v TRUE
vDifficulty: v3
vHard
Topic: Measuring vBusiness vActivities
Learning vObjective: 01-02 vUnderstand vthe vbusiness vactivities vthat vfinancial vaccounting
vmeasures.vBloom's: Apply
AACSB: Knowledge vApplication
vAICPA: FN vMeasurement
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