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1" Copyright © 2017 Pearson Education, Inc.Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter(2(((Transaction(Analysis( ( 1"""Learning"Objective"211" " 1)"A"transaction"is"any"event"that"has"a"financial"impact"on"the"business"and"that"can"be"measured" reliably."
Answer:""TRUE"
Diff:"1""""""Var:"1"
LO:""211"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
" 2)"Business"events"are"recorded"even"if"the"financial"impact"cannot"be"measured."
Answer:""FALSE"
Diff:"1""""""Var:"1"
LO:""211"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
" 3)"Transactions"provide"objective"information"about"the"financial"impact"of"an"exchange"on"an"entity."
Answer:""TRUE"
Diff:"1""""""Var:"1"
LO:""211"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
" 4)"Which"of"the"following"is"NOT"a"business"transaction?" A)"A"company"buys"goods"on"account." B)"A"company"sells"land"for"cash." C)"A"company"fired"10"percent"of"the"employees"due"to"lackluster"sales." D)"A"company"borrows"money"from"the"bank."
Answer:""C"
Diff:"2""""""Var:"1"
LO:""211"
AACSB:""Analytical"Thinking"
AICPA"Bus"Persp:""Strategic/Critical"Thinking"
AICPA"Functional:""Measurement"
Financial Accounting 11th Edition Harrison Test Bank Visit TestBankDeal.com to get complete for all chapters
2" Copyright © 2017 Pearson Education, Inc.5)"Which"of"the"following"is"a"business"transaction?" A)"A"company"signs"a"contact"for"services"to"be"provided"during"the"first"quarter"of"the"next"fiscal"year." B)"A"company"pays"its"employees"a"year1end"bonus." C)"A"company"hires"a"new"marketing"manager." D)"A"company"applies"for"a"mortgage"that"will"be"used"to"purchase"a"new"office"building."
Answer:""B"
Diff:"2""""""Var:"1"
LO:""211"
AACSB:""Analytical"Thinking"
AICPA"Bus"Persp:""Strategic/Critical"Thinking"
AICPA"Functional:""Measurement"
" 2"""Learning"Objective"212" " 1)"The"account"is"the"basic"summary"device"of"accounting."
Answer:""TRUE"
Diff:"1""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
" 2)"An"accounts"receivable"represents"the"promise"of"the"business"to"pay"a"debt."
Answer:""FALSE"
Diff:"2""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
" 3)"Prepaid"rent"is"an"expense"because"the"payment"provides"a"future"benefit"of"the"company."
Answer:""FALSE"
Diff:"2""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
" 4)"Assets"include"cash,"land,"and"accounts"payable."
Answer:""FALSE"
Diff:"2""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement,"Reporting"
"
3" Copyright © 2017 Pearson Education, Inc.5)"Cost"of"goods"sold"is"an"example"of"a"revenue"account."
Answer:""FALSE"
Diff:"2""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement,"Reporting"
6)"An"accrued"liability"is"a"liability"for"an"expense"that"has"not"yet"been"paid."
Answer:""TRUE"
Diff:"2""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement,"Reporting"
" 7)"A"prepaid"expense"is"an"asset."
Answer:""TRUE"
Diff:"2""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement,"Reporting"
" 8)"A"record"of"all"the"changes"in"a"particular"asset"during"a"period"of"time"is"found"in"a(n):" A)"transaction." B)"trial"balance." C)"prior"period^s"balance"sheet." D)"account."
Answer:""D"
Diff:"1""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
" 9)"All"of"the"following"accounts"would"be"considered"assets"EXCEPT"for:" A)"Cash." B)"Retained"Earnings." C)"Prepaid"Expenses." D)"Notes"Receivable."
Answer:""B"
Diff:"2""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
"
4" Copyright © 2017 Pearson Education, Inc.10)"Which"account"includes"balances"in"multiple"checking"accounts?" A)"Accounts"Receivable" B)"Notes"Receivable" C)"Cash" D)"Prepaid"Expenses"
Answer:""C"
Diff:"1""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement"
11)"Which"of"the"following"is"a"CORRECT"statement?" A)"Shareholders^"equity"is"also"called"proprietorship"equity." B)"A"proprietorship"has"more"than"one"capital"account." C)"A"partnership"has"a"separate"owner^s"equity"account"for"each"partner." D)"Retained"earnings"is"the"owner^s"investment"in"the"corporation."
Answer:""C"
Diff:"2""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Strategic/Critical"Thinking"
AICPA"Functional:""Measurement"
" 12)"Interest"payable,"income"tax"payable"and"salary"payable"are"all"examples"of:" A)"accrued"liabilities." B)"prepaid"expenses." C)"expenses"of"future"periods." D)"retained"earnings."
Answer:""A"
Diff:"1""""""Var:"1"
LO:""212"
AACSB:""Reflective"Thinking"
AICPA"Bus"Persp:""Legal/Regulatory"
AICPA"Functional:""Measurement,"Reporting"
" 13)"Which"transaction"increases"stockholders^"equity?" A)"sale"of"common"stock" B)"dividends"that"are"declared"and"paid" C)"expenses"greater"than"revenues"for"the"period" D)"payment"of"operating"expenses"
Answer:""A"
Diff:"1""""""Var:"1"
LO:""212"
AACSB:""Analytical"Thinking"
AICPA"Bus"Persp:""Strategic/Critical"Thinking"
AICPA"Functional:""Measurement,"Reporting"
"
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