LEARNING OBJECTIVES: COLL.HEIN.17.1 - LO: 2-1

• A business entity is an individual, association, or organization with control over economic resources and which

engages in economic activities.

• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.1 - LO: 2-1

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-03-Business Forms KEYWORDS: Bloom's: Remembering

NOTES: 1 min.

• Liabilities represent an "inside" interest in a business.
• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.1 - LO: 2-1

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-03-Business Forms KEYWORDS: Bloom's: Remembering

NOTES: 1 min.

• The accounting equation shows the relationship among the three basic accounting elements—assets, expenses, and

owner's equity.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.2 - LO: 2-2

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-02-GAAP

KEYWORDS: Bloom's: Remembering NOTES: 1 min. CengageLearningTesting,Poweredby CogneroPage 1Chapter 2—Analyzing Transactions: The Accounting Equation College Accounting Chapters 1 27 22nd Edition Heintz Test Bank Visit TestBankDeal.com to get complete for all chapters

• If owner's equity and liabilities increased during the period, then assets must also have increased.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.2 - LO: 2-2

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-02-GAAP

KEYWORDS: Bloom's: Remembering

NOTES: 1 min.

• An accounts payable is an unwritten promise to pay a supplier for assets purchased or services rendered.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.1 - LO: 2-1

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-02-GAAP

KEYWORDS: Bloom's: Remembering

NOTES: 1 min.

• If the revenue of a period exceeds the expenses, the excess represents a net loss.
• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.3 - LO: 2-5

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-09-Financial Statements KEYWORDS: Bloom's: Evaluating NOTES: 1 min. CengageLearningTesting,Poweredby CogneroPage 2Chapter 2—Analyzing Transactions: The Accounting Equation

• Any accounting period of twelve months' duration is usually referred to as a fiscal year.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.3 - LO: 2-5

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-02-GAAP

KEYWORDS: Bloom's: Remembering

NOTES: 1 min.

• Revenues received during an accounting period increase owner's equity.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.4 - LO: 2-4

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-09-Financial Statements KEYWORDS: Bloom's: Remembering

NOTES: 1 min.

• Since supplies last for several months, they are recorded as assets.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.4 - LO: 2-4

ACCREDITING STANDARDS: AICPA FN-Measurement

BUSPROG: Communication

TOPICS: ACBSP: APC-02-GAAP

KEYWORDS: Bloom's: Remembering NOTES: 1 min. CengageLearningTesting,Poweredby CogneroPage 3Chapter 2—Analyzing Transactions: The Accounting Equation

• Since insurance lasts for several months, it is recorded as owner's equity.
• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.4 - LO: 2-4

ACCREDITING STANDARDS: AICPA FN-Measurement

BUSPROG: Communication

TOPICS: ACBSP: APC-02-GAAP

KEYWORDS: Bloom's: Remembering

NOTES: 1 min.

• The income statement provides information about events over a period of a month, year, or other period of time.
• True
• False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.3 - LO: 2-5

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-09-Financial Statements KEYWORDS: Bloom's: Remembering

NOTES: 1 min.

• The terms "profit and loss statement" or "operating statement" are sometimes used as synonyms for the balance

sheet.

• True
• False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: COLL.HEIN.17.3 - LO: 2-5

ACCREDITING STANDARDS: AICPA BB-Industry

BUSPROG: Communication

TOPICS: ACBSP: APC-09-Financial Statements KEYWORDS: Bloom's: Remembering NOTES: 1 min. CengageLearningTesting,Poweredby CogneroPage 4Chapter 2—Analyzing Transactions: The Accounting Equation