TEST BANK For Financial Accounting, 6th Edition By David Spiceland, Wayne Thomas, Verified Chapters 1 - 12, Complete Newest Version TEST BANK For Financial Accounting, 6th Edition By David Spiceland, Wayne Thomas, Verified Chapters 1 - 12, Complete Newest Version TEST BANK For Financial Accounting,...
,Chapter 1 A Framework for Financial Accounting jx j x jx jx jx jx
1) Accounting is a system of maintaining records of a company's operations and communicatingthat infjx jx jx jx jx jx jx jx jx jx jx jx xj jx
ormation to decision makers. jx jx jx
Answer: TRUE Di jx jx
fficulty: 1 Easy jx xj
Topic: Defining Accounting j x jx
Learning Objective: 01- jx j x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective ThinkingAI jx jx xj
CPA: BB Critical Thinking
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2) Accounting information is used by investors to decide whether to invest in a company's stock. jx jx jx jx jx jx jx jx jx jx jx jx jx jx
Answer: TRUE Di jx jx
fficulty: 1 Easy jx xj
Topic: Defining Accounting j x jx
Learning Objective: 01- jx j x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective ThinkingAI jx jx xj
CPA: BB Critical Thinking
j x jx jx
3) Accounting information is used by creditors to decide whether to invest in a company's stock. jx jx jx jx jx jx jx jx jx jx jx jx jx jx
Answer: FALSE j x
Explanation: Creditors lend money to a company.Diffic jx jx jx jx jx jx xj
ulty: 1 Easy jx jx
Topic: Defining Accounting j x jx
Learning Objective: 01- jx j x
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective ThinkingAI jx jx xj
CPA: BB Critical Thinking
j x jx jx
4) The primary functions of financial accounting are to measure business activities of a companyand to c
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ommunicate those measurements to internal parties for decision-making purposes. jx jx jx jx jx jx jx jx
Answer: FALSE j x
Explanation: Financial accounting primarily serves to provide information to external parties.Difficulty:
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2 Medium
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Topic: Defining Accounting j x jx
Learning Objective: 01- jx j x
01 Describe the two primary functions of financial accounting.Bloom's: Understand
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AACSB: Reflective ThinkingAI jx jx xj
CPA: BB Critical Thinking
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, 5) Financing activities are transactions involving external sources of funding.
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Answer: TRUE Di jx jx
fficulty: 1 Easy jx xj
Topic: Measuring Business Activities
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Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
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Bloom's: Remember AACSB: j x jx j
xReflective ThinkingAICPA: F jx xj j x
N Measurement
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6) Investing activities include the purchase and sale of long-term resources.
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Answer: TRUE Di jx jx
fficulty: 1 Easy jx xj
Topic: Measuring Business Activities
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Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
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Bloom's: Remember AACSB: j x jx j
xReflective ThinkingAICPA: F jx xj j x
N Measurement
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7) Operating activities include transactions that relate to the primary operations of the company.
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Answer: TRUE Di jx jx
fficulty: 1 Easy jx xj
Topic: Measuring Business Activities
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Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
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Bloom's: Remember AACSB: j x jx j
xReflective ThinkingAICPA: F jx xj j x
N Measurement
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8) A corporation is an entity that is legally separate from its owners.
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Answer: TRUE Di jx jx
fficulty: 1 Easy jx xj
Topic: Measuring Business Activities
j x jx jx
Learning Objective: 01-02 Understand the business activities that financial accountingmeasures.
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Bloom's: Remember AACSB: R jxjxjx jx jx
eflective ThinkingAICPA: BB jx xj j x jx
Critical Thinking jx
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