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CHAPTER 2
THE RECORDING PROCES S
SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM ’S
TAXONOMY
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements
1. 1 K 9. 1 K 17. 2 K 25. 3 K 33. 2 K
2. 1 K 10. 1 K 18. 2 K 26. 3 C 34. 3 K
3. 1 K 11. 1 K 19. 2 K 27. 3 K 35. 3 C
4. 1 K 12. 1 K 20. 2 K 28. 3 K 36. 4 K
5. 1 K 13. 1 K 21. 2 K 29. 3 K 37. 4 K
6. 1 K 14. 1 K 22. 2 K 30. 4 K
7. 1 K 15. 2 K 23. 2 K 31. 1 K
8. 1 K 16. 2 K 24. 2 K 32. 1 K
Multiple Choice Questions
38. 1 K 63. 1 C 88. 2 K 113. 3 K 138. 4 C
39. 1 K 64. 1 C 89. 2 K 114. 3 K 139. 1 K
40. 1 K 65. 1 K 90. 2 K 115. 3 C
st
140. 1 K
41. 1 C 66. 1 K 91. 2 K 116. 3 K 141. 1 K
42. 1 K 67. 1 K 92. 2 C 117. 3 K
st
142. 1 K
43. 1 K 68. 1 K 93. 2 K 118. 2 AP 143. 1 K
44. 1 K 69. 1 K 94. 2 K 119. 3 K
st
144. 2 K
45. 1 K 70. 1 C 95. 2 K 120. 3 K 145. 2 K
46. 1 K 71. 1 K 96. 2 K 121. 3 K 146. 2 K
47. 1 K 72. 1 K 97. 2 K 122. 3 K 147. 2 C
48. 1 K 73. 1 K 98. 2 K 123. 3 K
st
148. 3 K
49. 1 K 74. 1 C 99. 2 K 124. 3 K 149. 3 K
50. 1 K 75. 1 K 100. 2 K 125. 3 K
st
150. 4 K
51. 1 K 76. 1 K 101. 2 K 126. 3 K 151. 4 C
52. 1 K 77. 1 C 102. 2 K 127. 3 K 152. 5 K
53. 1 K 78. 1 AP 103. 2 K 128. 3 K 153. 5 K
54. 1 C 79. 1 AP 104. 2 C 129. 3 K 154. 5 K
55. 1 C 80. 1 AP 105. 2 K 130. 3 K 155. 5 K
56. 1 C 81. 2 AP 106. 2 K 131. 3 K 156. 5 K
57. 1 K 82. 1 AP 107. 2 K 132. 4 K 157. 5 K
58. 1 K 83. 1 AP 108. 2 K 133. 4 C 158. 5 K
59. 1 K 84. 1 C 109. 2 C 134. 4 K
60. 1 K 85. 1 AP 110. 2 AN 135. 4 C
61. 1 K 86. 1 AP 111. 3 K 136. 4 K
62. 1 K 87. 2 K 112. 3 K 137. 4 K
Brief Exercises
159. 1 AP 162. 2 AP 164. 2 K 166. 3 AP 168. 4 AP
160. 1 C 163. 2 AP 165. 2 AP 167. 3 AP 169. 4 AP
161. 1 K
st This question also appears in a self-test at the student companion website.Accounting Principles 12th Edition Weygandt Test Bank Visit TestBankDeal.com to get complete for all chapters
Test Bank for Accounting Principles, Twelfth Edition
FOR INSTRUCTOR USE ONLY
- - 2
SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM ’S
TAXONOMY
Exercises
170. 1 AP 175. 1 C 180. 1 C 185. 4 AP 190. 4 AP
171. 1 C 176. 1 C 181. 2 AP 186. 3 AN 191. 4 AP
172. 1 C 177. 1 C 182. 2 C 187. 3 AP 192. 4 AP
173. 1 C 178. 1 C 183. 2 AP 188. 4 AN 193. 4 AN
174. 1 C 179. 2 AP 184. 3 AP 189. 4 AN
Completion Statements
194. 1 K 196. 1 K 198. 2 K 200. 2 K 202. 3 K
195. 1 K 197. 1 K 199. 2 K 201. 2 K 203. 4 K
Short-Answer Essay 205.3
1 C 208. 4 AN 211. 2 C 214. 2, 3 S
206. 1 C 209. 2 S 212. 3 C 215. 1 E
207. 1 S 210. 2 C 213. 3 S 216. 1 S
SUMMARY OF LEARNING OBJECTIVES BY QUESTI ON TYPE
Item Type Item Type Item Type Item Type Item Type Item Type Item Type Learning Objective 1
1. TF 31. TF 50. MC 64. MC 78. MC 160. BE 196. C
2. TF 32. TF 51. MC 65. MC 79. MC 161. BE 197. C
- TF 38. MC 52. MC 66. MC 80. MC 170. Ex 205. SA
- TF 39. MC 53. MC 67. MC 82. MC 171. Ex 206. SA
- TF 40. MC 54. MC 68. MC 83. MC 172. Ex 207. SA
- TF 41. MC 55. MC 69. MC 84. MC 173. Ex 215. SA
- TF 42. MC 56. MC 70. MC 85. MC 174. Ex 216. SA
- TF 43. MC 57. MC 71. MC 86. MC 175. Ex
- TF 44. MC 58. MC 72. MC 139. MC 176. Ex
- TF 45. MC 59. MC 73. MC 140. MC 177. Ex
- TF 46. MC 60. MC 74. MC 141. MC 178. Ex
- TF 47. MC 61. MC 75. MC 142. MC 180. Ex
13. TF 48. MC 62. MC 76. MC 143. MC 194. C
14. TF 49. MC 63. MC 77. MC 159. BE 195. C
Learning Objective 2
- TF 24. TF 93. MC 102. MC 118. MC 179. Ex 210. SA
- TF 33. TF 94. MC 103. MC 144. MC 181. Ex 211. SA
- TF 81. MC 95. MC 104. MC 145. MC 182. Ex 214. SA
- TF 87. MC 96. MC 105. MC 146. MC 183. Ex
19. TF 88. MC 97. MC 106. MC 147. MC 198. C
20. TF 89. MC 98. MC 107. MC 162. BE 199. C
21. TF 90. MC 99. MC 108. MC 163. BE 200. C
22. TF 91. MC 100. MC 109. MC 164. BE 201. C
23. TF 92. MC 101. MC 110. MC 165. BE 209. SA
The Recording Process
FOR INSTRUCTOR USE ONLY
- - 3
SUMMARY OF LEARNING OBJECTIVES BY QUESTI ON TYPE
Learning Objective 3
25. TF 111. MC 119. MC 126. MC 149. MC 212. SA
26. TF 112. MC 120. MC 127. MC 166. BE 213. SA
27. TF 113. MC 121. MC 128. MC 167. BE 214. SA
- TF 114. MC 122. MC 129. MC 184. Ex
- TF 115. MC 123. MC 130. MC 186. Ex
- TF 116. MC 124. MC 131. MC 187. Ex
35. TF 117. MC 125. MC 148. MC 202. C
Learning Objective 4
- TF 134. MC 150. MC 188. Ex 193. Ex
- TF 135. MC 151. MC 189. Ex 203. C
- TF 136. MC 168. BE 190. Ex 208. SA
- MC 137. MC 169. BE 191. Ex 193. Ex
- MC 138. MC 185. Ex 192. Ex
Learning Objective 5
152. MC 153. MC 154. MC 155. MC 156. MC 157. MC 158. MC
Note: TF = True-False BE = Brief Exercise C = Completion
MC = Multiple Choice Ex = Exercise SA = Short-Answer Essay
The chapter also contains one set of ten Matching questions and six Short-Answer Essay questions. A summary table of all learning outcomes, including AACSB, AICPA, and IMA professional standards, is available on the Weygandt Accounting Principles 12e instructor web site.
CHAPTER LEARNING OBJECTIVES
- Describe how accounts, debits, and credits are used to record business transactions .
- Indicate how a journal is used in the recording process. The basic steps in the recording
- Explain how a ledger and posting help in the recording process. The ledger is the entire
- Prepare a trial balance. A trial balance is a list of accounts and their balances at a given
An account is a record of increases and decreases in specific asset, liability, and owner’s equity items. The terms debit and credit are synonymous with left and right. Assets, drawings, and expenses are increased by debits and decreased by credits. Liabilities, owner’s capital, and revenues are increased by credits and decreased by debits.
process are (a) analyze each transaction for its effects on the accounts, (b) enter the transaction information in a journal, and (c) transfer the journal information to the appropriate accounts in the ledger. The initial accounting record of a transaction is entered in a journal before the data are entered in the accounts. A journal (a) discloses in one place the complete effects of a transaction, (b) provides a chronological record of transactions, and (c) prevents or locates errors because the debit and credit amounts for each entry can be easily compared.
group of accounts maintained by a company. The ledger provides the balance in each of the accounts as well as keeps track of changes in these balances. Posting is the transfer of journal entries to the ledger accounts. This phase of the recording process accumulates the effects of journalized transactions in the individual accounts.
time. Its primary purpose is to prove the equality of debits and credits after posting. A trial balance also uncovers errors in journalizing and posting and is useful in preparing financial statements.
Test Bank for Accounting Principles, Twelfth Edition
FOR INSTRUCTOR USE ONLY
- - 4
TRUE-FALSE STATEMENTS
- A new account is opened for each transaction entered into by a business firm.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- The recording process becomes more efficient and informative if all transactions are
recorded in one account.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- When the volume of transactions is large, recording them in tabular form is more efficient
than using journals and ledgers.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- An account is often referred to as a T-account because of the way it is constructed.
Ans: T LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- A debit to an account indicates an increase in that account.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- If a revenue account is credited, the revenue account is increased.
Ans: T LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- The normal balance of all accounts is a debit.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- Debit and credit can be interpreted to mean increase and decrease, respectively.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- The double-entry system of accounting refers to the placement of a double line at the end
of a column of figures.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- A credit balance in a liability account indicates that an error in recording has occurred.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- The drawing account is a subdivision of the owner’s capital account and appears as an
expense on the income statement.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- Revenues are a subdivision of owner’s capital.
Ans: T LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- Under the double-entry system, revenues must always equal expenses.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- Transactions are entered in the ledger first and then they are analyzed in terms of their
effect on the accounts.
Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- Business documents can provide evidence that a transaction has occurred.
Ans: T LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
- Each transaction must be analyzed in terms of its effect on the accounts before it can be
recorded in a journal.
Ans: T LO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: RT AICPA BB: CT AICPA FN: Reporting
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