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
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1) Accounting is a system of maintaining records of a company's operations and communicatingthat zg zg zg zg zg zg zg zg zg zg zg zg zg zg
information to decision makers. zg zg zg
Answer: TRUE D zg zg
ifficulty: 1Easy zg zg
Topic: Defining Accounting
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Learning Objective: 01- zg z g
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective ThinkingA zg zg zg
ICPA: BB Critical Thinking
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2) Accounting information is used by investors to decide whether to invest in a company's stock. zg zg zg zg zg zg zg zg zg zg zg zg zg zg
Answer: TRUE D zg zg
ifficulty: 1Easy zg zg
Topic: Defining Accounting
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Learning Objective: 01- zg z g
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective ThinkingA zg zg zg
ICPA: BB Critical Thinking
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3) Accounting information is used by creditors to decide whether to invest in a company's stock. zg zg zg zg zg zg zg zg zg zg zg zg zg zg
Answer: FALSE z g
Explanation: Creditors lend money to a company.Diff zg zg zg zg zg zg zg
iculty: 1 Easy zg zg
Topic: Defining Accounting
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Learning Objective: 01- zg z g
01 Describe the two primary functions of financial accounting.Bloom's: Remember
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AACSB: Reflective ThinkingA zg zg zg
ICPA: BB Critical Thinking
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4) The primary functions of financial accounting are to measure business activities of a companyand
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to communicate those measurements to internal parties for decision-making purposes.
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Answer: FALSE z g
Explanation: Financial accounting primarily serves to provide information to external parties.Diffi
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culty: 2 Medium
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Topic: Defining Accounting
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Learning Objective: 01- zg z g
01 Describe the two primary functions of financial accounting.Bloom's: Understand
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AACSB: Reflective ThinkingA zg zg zg
ICPA: BB Critical Thinking
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, 5) Financing activities are transactions involving external sources of funding. zg zg zg zg zg zg zg zg
Answer: TRUE D zg zg
ifficulty: 1Easy zg zg
Topic: Measuring Business Activities
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Learning Objective: 01- zg z g
02 Understand the business activities that financial accountingmeasures.
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Bloom's: Remember AACSB: z g zg
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6) Investing activities include the purchase and sale of long-term resources.
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Answer: TRUE D zg zg
ifficulty: 1Easy zg zg
Topic: Measuring Business Activities
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Learning Objective: 01- zg z g
02 Understand the business activities that financial accountingmeasures.
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Bloom's: Remember AACSB: z g zg
z Reflective ThinkingAICPA:
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gFN Measurement zg
7) Operating activities include transactions that relate to the primary operations of the company.
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Answer: TRUE D zg zg
ifficulty: 1Easy zg zg
Topic: Measuring Business Activities
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Learning Objective: 01- zg z g
02 Understand the business activities that financial accountingmeasures.
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Bloom's: Remember AACSB: z g zg
z Reflective ThinkingAICPA:
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gFN Measurement zg
8) A corporation is an entity that is legally separate fromits owners.
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Answer: TRUE D zg zg
ifficulty: 1Easy zg zg
Topic: Measuring Business Activities
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Learning Objective: 01- zg z g
02 Understand the business activities that financial accountingmeasures.
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Bloom's: Remember AACSB: zgzgzg zg zg
Reflective ThinkingAICPA: zg zg z g
BB Critical Thinking
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