Exam (elaborations)
Test Bank For Intermediate Accounting, 11th Edition by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Test Bank For Intermediate Accounting, 11th Edition by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
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FULL TEST BANK FORq q q
Intermediate Accounting, 11th Edition
q q q
Answer Key q
Test name: chapter 1
q q q
q1)
TERM PHRASE Term number q
qthat matches
q
qthe phrase.
q
1. Predictive va lue
q q Information is useful in q q q 1
projecting cash flows. q q
2. Relevance
q Pertinent to the decision at q q q q 2
hand.
3. Distribution to
q Information is available prior q q q 5
owners to the decision.
q q
4. Confirmatory
q Decrease in equity due to q q q q 3
value qtransfers to owners. q q
5. Timeliness
q Information confirms q 4
expectations.
2)
TERM PHRASE Term number q
q that matches
q
the phrase.
q
1. Gain
q Along with relevance, a
q q q 5
fundamental decision-specific q
quality.
q
2. Materiality
q Results if an asset is sold
q q q q q for 1
more than book value.
q q q
3. Completeness
q Contains all informationq q 3
necessary for faithful q q
representation.
4.q Comprehensive The change in equity from
q q q q 4
income nonowner transactions. q
Version 1 1
, 5. Faithful
q Concerns the decision-making q q 2
representatio
q impact of both the amount and
q q q q q
n q nature of an item.q q q
3)
TERM PHRASE Term number q
qthat matches
q
qthe phrase.
q
1. Neutrality Important in analysis between q q q 2
firms.
2. Comparability Accounting information should q q 1
be unbiased.
q
3. Consistency The decision to include an
q q q q 5
amount in the financial
q q q
q statements.
4. Cost-effectiveness Applying the same accounting
q q q q 3
practices over time. q q
5. Recognition Considers the value of using q q q q 4
information relative to cost of q q q q
q providing it. q
4)
TERM PHRASE Term number q
q that matches
q
q the phrase.
q
1. Monetary unit
q Implies consensus among q q 2
qassumption different observers. q
2. Verifiability Assumes all transactions can be
q q q q 3
identified with a particular q q q
entity.
q
3. Economic entity
q Assumes an entity will continue
q q q q 4
qassumption to operate indefinitely.
q q
4. Going concern
q Requires reporting the q q 5
qassumption financial life of an entity in q q q q q
discrete time frames.
q q q
5. Periodicity Ignores the possibility of q q q 1
q assumption inflation.
5)
TERM PHRASE Term number q
that matches
q
the phrase.
q
1. Historical cost
q Basis of measurement for fixed
q q q q 1
Version 1 2
, assets.
2. Materiality Discounts future cash flows. q q q 5
3. Revenue Occurs when goods or services q q q q 3
recognitio
q are transferred to the
q q q
n q customer.
4. Full disclosure
q Reporting of all information q q q 4
that could affect decisions.
q q q
5. Present value q Application of GAAP sometimes q q q 2
avoided under this constraint. q q q
6)
TERM PHRASE Term number
q
q that matches
q
q the phrase.
q
1. Financial Undermines representational q 3
Accounting
q faithfulness by being q q
Standards
q Board
q inconsistent with neutrality.
q q q
2. Accounting It established GAAP before the
q q q q 2
Principles Board
q q FASB.
3. Conservatism Its EITF Issues are GAAP when
q q q q q 1
entered in the Accounting q q q
Standards Codification.
q q
4. American It has the authority to set U.S.
q q q q q q 5
Institute of CPAs
q q q accounting standards. q
q(AICPA)
5. Securities and q It is the national organization
q q q q 4
Exchange Commission
q q for CPAs in the United States.
q q q q q
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 Claims of creditors against q q q 5
4. Investments by q the assets of a business.
q q q q
qowners
5. Liabilities Transfers of resources in q q q 4
exchange for common and q q q
qpreferred stock. q
Version 1 3
, 8)
TERM PHRASE Term number q
q that matches q
q the phrase.
q
1. Losses Net outflows from peripheral
q q q 1
transactions.
2. Assets Increases in equity from the q q q q 3
sale of goods and/or services.
q q q q
3. Revenues Results if an asset is sold for
q q q q q q 5
more than book value.
q q q
4. Comprehensive All changes in equity except
q q q q 4
qincome owner transactions. q
5. Gains Probable future economic q q 2
benefits controlled by an q q q
qentity.
9)
TERM PHRASE Term number q
qthat matches q
qthe phrase.
q
1. SEC Establishes auditing standards in q q q 6
the U.S. for public companies.
q q q q
2. FASB Primary national organization of
q q q 7
accountants working in industry. q q q
3. IASB Sets accounting standards in the
q q q q 2
United States.q
4. AICPA Provides timely responses to
q q q 5
financial reporting issues.
q q
5. EITF The FASB's parent organization.
q q q 10
6. PCAOB Advises the FASB. q q 8
7. IMA FASB's predecessor.
q 9
8. FASAC Regulates the financial reporting
q q q 1
for public companies.
q q
9. APB National organization of certified
q q q 4
public accountants.
q
10. FAF Sets global accounting standards.
q q q 3
Version 1 4
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