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Chapter 2 - Analyzing Transactions © 2017 Cengage Learning ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- Accounts are records of increases and decreases in individual accounting equation elements.
- True
b.False
ANSWER:True
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.ACBSP.APC.02 - GAAP
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- A chart of accounts is a listing of accounts that make up the journal.
- True
b.False
ANSWER:False
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose
ACCT.ACBSP.APC.02 - GAAP
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- The chart of accounts should be the same for each business.
- True
b.False
ANSWER:False
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- Accounts payable are accounts that you expect will be paid to you.
- True
b.False
ANSWER:False
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.04 - Cash vs. Accrual ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
Financial and Managerial Accounting 14th Edition Warren Test Bank Visit TestBankDeal.com to get complete for all chapters
Chapter 2 - Analyzing Transactions © 2017 Cengage Learning ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- Consuming goods and services in the process of generating revenues results in expenses.
- True
b.False
ANSWER:True
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- Prepaid expenses are an example of an expense.
- True
b.False
ANSWER:False
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.04 - Cash vs. Accrual ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- The Unearned Revenues account is an example of a liability.
- True
b.False
ANSWER:True
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.04 - Cash vs. Accrual ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- The Dividends account is an expense.
- True
b.False
ANSWER:False
Chapter 2 - Analyzing Transactions © 2017 Cengage Learning ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- Accounts in the ledger are usually maintained in alphabetical order.
- True
b.False
ANSWER:False
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- Depending on the account title, the right side of the account is referred to as the credit side.
- True
b.False
ANSWER:False
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- To determine the balance in an account, always subtract credits from debits.
- True
b.False
ANSWER:False
DIFFICULTY: Moderate
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
Chapter 2 - Analyzing Transactions © 2017 Cengage Learning ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- An account in its simplest form has three parts to it: a title, an increase side, and a decrease side.
- True
b.False
ANSWER:True
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- The T account got its name because it resembles the letter “T.”
- True
b.False
ANSWER:True
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- The right hand side of a T account is known as a debit and the left hand side is known as a credit.
- True
b.False
ANSWER:False
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
- Debiting the cash account will increase the account.
- True
b.False
ANSWER:True
DIFFICULTY: Easy
Bloom's: Remembering
LEARNING OBJECTIVES: FNMN.WARD.17.02-01 - LO: 02-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement
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