,TEST BANK FOR +f +f
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herr
+f +f +f +f +f +f +f +f +f +f
mann
Chapter 1 +f A Framework for Financial Accounting
+f +f +f +f
1) Accounting is a system of maintaining records of a company's operations and communicatin
+f +f +f +f +f +f +f +f +f +f +f +f
g that information to decision makers.
+f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy +f +f
Topic: Defining Accounting +f
Learning Objective: 01- +f
01 Describe the two primary functions of financial accounting. Bloom's:
+f +f +f +f +f +f +f +f +f
Remember
AACSB:
Reflective Thinking +f +f
AICPA: BB Critical Thinking +f +f
2) Accounting information is used by investors to decide whether to invest in a company's stock.
+f +f +f +f +f +f +f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy +f +f
Topic: Defining Accounting +f
Learning Objective: 01- +f
01 Describe the two primary functions of financial accounting. Bloom's:
+f +f +f +f +f +f +f +f +f
Remember
AACSB:
Reflective Thinking +f +f
AICPA: BB Critical Thinking +f +f
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
+f +f +f +f +f +f +f +f +f +f +f +f +f +f
Answer: FALSE + f + f
Explanation:
Creditors lend money to a company. +f +f +f +f +f
Difficulty: 1 Easy
+f +f +f
Topic: Defining Accounting +f
Learning Objective: 01- +f
01 Describe the two primary functions of financial accounting. Bloom's:
+f +f +f +f +f +f +f +f +f
Remember
AACSB:
Reflective Thinking +f +f
AICPA: BB Critical Thinking +f +f
4) The primary functions of financial accounting are to measure business activities of a compan
+f +f +f +f +f +f +f +f +f +f +f +f +f
y and to communicate those measurements to internal parties for decision-making purposes.
+f +f +f +f +f +f +f +f +f +f +f
Answer: FALSE + f + f
Explanation:
, Financial accounting primarily serves to provide information to external parties
+f +f +f +f +f +f +f +f +f
. Difficulty: 2 Medium
+f +f +f
Topic: Defining Accounting
+f
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
+f +f +f +f +f +f +f +f +f
, Bloom's:
Understand AACSB: +f
Reflective Thinking +
f +f +f
AICPA: BB Critical Thinking +f +f
5) Financing activities are transactions involving external sources of funding.
+f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy
+f +f
Topic: Measuring Business Activities +f +f
Learning Objective: 01-
+f
02 Understand the business activities that financial accounting measures. Bloom's:
+f +f +f +f +f +f +f +f +f Remember
AACSB:
Reflective Thinking +f +f
AICPA: FN Measurement +f
6) Investing activities include the purchase and sale of long-term resources.
+f +f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy
+f +f
Topic: Measuring Business Activities +f +f
Learning Objective: 01-
+f
02 Understand the business activities that financial accounting measures. Bloom's:
+f +f +f +f +f +f +f +f +f Remember
AACSB:
Reflective Thinking +f +f
AICPA: FN Measurement +f
7) Operating activities include transactions that relate to the primary operations of the company.
+f +f +f +f +f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy
+f +f
Topic: Measuring Business Activities +f +f
Learning Objective: 01-
+f
02 Understand the business activities that financial accounting measures. Bloom's:
+f +f +f +f +f +f +f +f +f Remember
AACSB:
Reflective Thinking +f +f
AICPA: FN Measurement +f
8) A corporation is an entity that is legally separate from its owners.
+f +f +f +f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy
+f +f
Topic: Measuring Business Activities +f +f
Learning Objective: 01-
+f
02 Understand the business activities that financial accounting measures. Bloom's:
+f +f +f +f +f +f +f +f +f Remember
AACSB:
Reflective Thinking +f +f
AICPA: BB Critical Thinking +f +f
Financial Accounting 6th Edition by David Spiceland, Wayne Thomas, Don Herr
+f +f +f +f +f +f +f +f +f +f
mann
Chapter 1 +f A Framework for Financial Accounting
+f +f +f +f
1) Accounting is a system of maintaining records of a company's operations and communicatin
+f +f +f +f +f +f +f +f +f +f +f +f
g that information to decision makers.
+f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy +f +f
Topic: Defining Accounting +f
Learning Objective: 01- +f
01 Describe the two primary functions of financial accounting. Bloom's:
+f +f +f +f +f +f +f +f +f
Remember
AACSB:
Reflective Thinking +f +f
AICPA: BB Critical Thinking +f +f
2) Accounting information is used by investors to decide whether to invest in a company's stock.
+f +f +f +f +f +f +f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy +f +f
Topic: Defining Accounting +f
Learning Objective: 01- +f
01 Describe the two primary functions of financial accounting. Bloom's:
+f +f +f +f +f +f +f +f +f
Remember
AACSB:
Reflective Thinking +f +f
AICPA: BB Critical Thinking +f +f
3) Accounting information is used by creditors to decide whether to invest in a company's stock.
+f +f +f +f +f +f +f +f +f +f +f +f +f +f
Answer: FALSE + f + f
Explanation:
Creditors lend money to a company. +f +f +f +f +f
Difficulty: 1 Easy
+f +f +f
Topic: Defining Accounting +f
Learning Objective: 01- +f
01 Describe the two primary functions of financial accounting. Bloom's:
+f +f +f +f +f +f +f +f +f
Remember
AACSB:
Reflective Thinking +f +f
AICPA: BB Critical Thinking +f +f
4) The primary functions of financial accounting are to measure business activities of a compan
+f +f +f +f +f +f +f +f +f +f +f +f +f
y and to communicate those measurements to internal parties for decision-making purposes.
+f +f +f +f +f +f +f +f +f +f +f
Answer: FALSE + f + f
Explanation:
, Financial accounting primarily serves to provide information to external parties
+f +f +f +f +f +f +f +f +f
. Difficulty: 2 Medium
+f +f +f
Topic: Defining Accounting
+f
Learning Objective: 01-01 Describe the two primary functions of financial accounting.
+f +f +f +f +f +f +f +f +f
, Bloom's:
Understand AACSB: +f
Reflective Thinking +
f +f +f
AICPA: BB Critical Thinking +f +f
5) Financing activities are transactions involving external sources of funding.
+f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy
+f +f
Topic: Measuring Business Activities +f +f
Learning Objective: 01-
+f
02 Understand the business activities that financial accounting measures. Bloom's:
+f +f +f +f +f +f +f +f +f Remember
AACSB:
Reflective Thinking +f +f
AICPA: FN Measurement +f
6) Investing activities include the purchase and sale of long-term resources.
+f +f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy
+f +f
Topic: Measuring Business Activities +f +f
Learning Objective: 01-
+f
02 Understand the business activities that financial accounting measures. Bloom's:
+f +f +f +f +f +f +f +f +f Remember
AACSB:
Reflective Thinking +f +f
AICPA: FN Measurement +f
7) Operating activities include transactions that relate to the primary operations of the company.
+f +f +f +f +f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy
+f +f
Topic: Measuring Business Activities +f +f
Learning Objective: 01-
+f
02 Understand the business activities that financial accounting measures. Bloom's:
+f +f +f +f +f +f +f +f +f Remember
AACSB:
Reflective Thinking +f +f
AICPA: FN Measurement +f
8) A corporation is an entity that is legally separate from its owners.
+f +f +f +f +f +f +f +f +f +f +f
Answer: TRUE Dif + f +f
ficulty: 1 Easy
+f +f
Topic: Measuring Business Activities +f +f
Learning Objective: 01-
+f
02 Understand the business activities that financial accounting measures. Bloom's:
+f +f +f +f +f +f +f +f +f Remember
AACSB:
Reflective Thinking +f +f
AICPA: BB Critical Thinking +f +f
