Financial Accounting 6th Edition by Spiceland CH01
Version 1
1
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
1)
Match each business activity with its example.
1.A) Purchase office building.
2.B) Pay utilities.
3.C) Receive investments from stockholders.
Operating
Financing
Investing
2)
Match each financial statement with the accounts reported on it:
1.A) Dividends.
2.B) Assets and liabilities.
3.C) Revenues and expenses.
Income statement
Statement of stockholders' equity
Balance sheet
,3)
Match each organization to its role:
1.A) Ensure that auditors follow strict guidelines when conducting their audits.
2.B) Independent, private-sector group that is primarily responsible for setting financial
reporting rules in the United States.
3.C) Develop a single set of high-quality, understandable global accounting standards.
4.D) Enforce proper application of financial reporting rules for companies whose
securities are
publicly traded.
Financial Accounting Standards Board
Public Company Accounting Oversight Board
International Accounting Standards Board
Securities and Exchange Commission
DOWNLOAD THE Test Bank for Financial Accounting 6th Edition Spiceland
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Financial Accounting 6th Edition by Spiceland CH01
Version 1
2
4)
Match each qualitative characteristic with its definition:
1.A) All information necessary to describe an item is reported.
2.B) Information provides feedback on past activities.
3.C) Information is presented in time to make useful decisions.
4.D) Information is useful in helping to forecast future outcomes.
5.E) Measurements that independent parties would agree upon.
, 6.F) Information that does not bias the decision maker.
Predictive value
Confirmatory value
Verifiability
Timeliness
Neutrality
Completeness
5)
For each transaction, indicate whether a company would classify the related account as an
asset, liability, stockholders' equity, dividend, revenue, or expense.
Transactions
Related Accounts
1. Receive cash from investors.
Common Stock
2. Pay rent for the current period.
Rent Expense
3. Purchase office equipment.
Equipment
4. Pay cash to stockholders.
Dividends
5. Provide services to customers.
Service Revenue
DOWNLOAD THE Test Bank for Financial Accounting 6th Edition Spiceland
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Financial Accounting 6th Edition by Spiceland CH01
Version 1
, 3
6)
Account classifications include assets, liabilities, stockholders' equity, dividends,
revenues, and expenses. Indicate the account classification for each account name.
Account Classifications
Accounts
Related Transactions
1. ________
Common Stock
Sell common stock to
investors.
2. ________
Cash
Receive cash from
customers.
3. ________
Salaries Payable
Incur amounts owed to
employees.
4. ________
Service Revenue
Sell services to customers.
5. ________
Utilities Expense Incur cost of utilities.
6. ________
Supplies
Purchase of office
supplies.
7. ________
Advertising
Expense
Pay for cost of
advertising.
8. ________
Buildings
Purchase building for
Version 1
1
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
1)
Match each business activity with its example.
1.A) Purchase office building.
2.B) Pay utilities.
3.C) Receive investments from stockholders.
Operating
Financing
Investing
2)
Match each financial statement with the accounts reported on it:
1.A) Dividends.
2.B) Assets and liabilities.
3.C) Revenues and expenses.
Income statement
Statement of stockholders' equity
Balance sheet
,3)
Match each organization to its role:
1.A) Ensure that auditors follow strict guidelines when conducting their audits.
2.B) Independent, private-sector group that is primarily responsible for setting financial
reporting rules in the United States.
3.C) Develop a single set of high-quality, understandable global accounting standards.
4.D) Enforce proper application of financial reporting rules for companies whose
securities are
publicly traded.
Financial Accounting Standards Board
Public Company Accounting Oversight Board
International Accounting Standards Board
Securities and Exchange Commission
DOWNLOAD THE Test Bank for Financial Accounting 6th Edition Spiceland
mynursytest.store
Financial Accounting 6th Edition by Spiceland CH01
Version 1
2
4)
Match each qualitative characteristic with its definition:
1.A) All information necessary to describe an item is reported.
2.B) Information provides feedback on past activities.
3.C) Information is presented in time to make useful decisions.
4.D) Information is useful in helping to forecast future outcomes.
5.E) Measurements that independent parties would agree upon.
, 6.F) Information that does not bias the decision maker.
Predictive value
Confirmatory value
Verifiability
Timeliness
Neutrality
Completeness
5)
For each transaction, indicate whether a company would classify the related account as an
asset, liability, stockholders' equity, dividend, revenue, or expense.
Transactions
Related Accounts
1. Receive cash from investors.
Common Stock
2. Pay rent for the current period.
Rent Expense
3. Purchase office equipment.
Equipment
4. Pay cash to stockholders.
Dividends
5. Provide services to customers.
Service Revenue
DOWNLOAD THE Test Bank for Financial Accounting 6th Edition Spiceland
mynursytest.store
Financial Accounting 6th Edition by Spiceland CH01
Version 1
, 3
6)
Account classifications include assets, liabilities, stockholders' equity, dividends,
revenues, and expenses. Indicate the account classification for each account name.
Account Classifications
Accounts
Related Transactions
1. ________
Common Stock
Sell common stock to
investors.
2. ________
Cash
Receive cash from
customers.
3. ________
Salaries Payable
Incur amounts owed to
employees.
4. ________
Service Revenue
Sell services to customers.
5. ________
Utilities Expense Incur cost of utilities.
6. ________
Supplies
Purchase of office
supplies.
7. ________
Advertising
Expense
Pay for cost of
advertising.
8. ________
Buildings
Purchase building for
