THE RECORDING PROCESS

CHAPTER 2

THE RECORDING PROCESS

SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S TAXONOMY

Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements

1. 1 K 9. 2 K 17. 3 K 25. 5 K

sg

33. 4 K

2. 1 K 10. 2 K 18. 3 K 26. 5 C

sg

34. 5 K

3. 1 K 11. 2 K 19. 4 K 27. 5 K

sg

35. 6 C

4. 1 K 12. 2 K 20. 4 K 28. 6 K

sg

36. 7 K

5. 2 K 13. 2 K 21. 4 K 29. 6 K

sg

37. 7 K

6. 2 K 14. 2 K 22. 4 K 30. 7 K

7. 2 K 15. 3 K 23. 4 K

sg

31. 2 K

8. 2 K 16. 3 K 24. 5 K

sg

32. 2 K

Multiple Choice Questions

38. 1 K 61. 2 K 84. 3 C 107. 4 K 130. 6 K

39. 1 K 62. 2 K 85. 3 K 108. 4 K 131. 6 K

40. 1 K 63. 2 C 86. 3 C 109. 4 C 132. 7 K

41. 1 C 64. 2 C 87. 3 K 110. 4 AN 133. 7 C

42. 1 K 65. 2 K 88. 3 K 111. 5 K 134. 7 K

43. 1 K 66. 2 K 89. 3 K 112. 5 K 135. 7 C

44. 1 K 67. 2 K 90. 3 K 113. 5 K 136. 7 K

45. 2 K 68. 2 K 91. 3 K 114. 5 K 137. 7 K

46. 2 K 69. 2 K 92. 3 C 115. 5 C 138. 7 C

47. 2 K 70. 2 C 93. 3 K 116. 5 K

sg

139. 1 K

48. 2 K 71. 2 K 94. 3 K 117. 5 K

st

140. 2 K

49. 2 K 72. 2 K 95. 3 K 118. 5 K

sg

141. 2 K

50. 2 K 73. 2 K 96. 3 K 119. 6 K

st

142. 3 K

51. 2 K 74. 2 C 97. 4 K 120. 6 K

sg

143. 3 K

52. 2 K 75. 2 K 98. 4 K 121. 6 K

st

144. 4 K

53. 2 K 76. 2 K 99. 4 K 122. 6 K

sg

145. 4 K

54. 2 C 77. 2 C 100. 4 K 123. 6 K

sg

146. 4 K

55. 2 C 78. 2 AP 101. 4 K 124. 6 K

sg

147. 4 C

56. 2 C 79. 2 AP 102. 4 K 125. 6 K

st

148. 6 K

57. 2 K 80. 2 K 103. 4 K 126. 6 K

sg

149. 6 K

58. 2 K 81. 3 K 104. 4 C 127. 6 K

st

150. 7 K

59. 2 K 82. 3 K 105. 4 K 128. 6 K

sg

151. 7 C

60. 2 K 83. 3 K 106. 4 K 129. 6 K

Brief Exercises

152. 2 AP 154. 4 K 156. 4 K 158. 6AP 160. 7 AP

153. 2 K 155. 4 AP 157. 4 AP 159. 6 AP 161. 7 AP

sg This question also appears in the Study Guide.st This question also appears in a self-test at the student companion website.

Financial Accounting 6th Edition Weygandt Test Bank Visit TestBankDeal.com to get complete for all chapters

Test Bank for Financial Accounting, Sixth Edition

• - 2

SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S TAXONOMY

Exercises

162. 1 C 167. 2 C 172. 3AP 177. 5 AN 182. 7 AP

163. 1 C 168. 2 C 173. 3 C 178. 6 AN 183. 7 AP

164. 1 C 169. 2 C 174. 4 C 179. 6 AN

165. 2 C 170. 2 AP 175. 5 AP 180. 6 AN

166. 2 C 171. 3 C 176. 5 AP 181. 7 AP

Completion Statements

184. 1 K 186. 2 K 188. 3 K 190. 4 K 192. 5 K

185. 2 K 187. 2 K 189. 4 K 191. 4 K 193. 7 K

SUMMARY OF STUDY OBJECTIVES BY QUESTION TYPE

Item Type Item Type Item Type Item Type Item Type Item Type Item Type Study Objective 1

• TF 4. TF 40. MC 43. MC 162. Ex 184. C
• TF 38. MC 41. MC 44. MC 163. Ex
• TF 39. MC 42. MC 139. MC 164. Ex

Study Objective 2

• TF 14. TF 51. MC 60. MC 69. MC 78. MC 167. Ex
• TF 31. TF 52. MC 61. MC 70. MC 79. MC 168. Ex
• TF 32. TF 53. MC 62. MC 71. MC 80. MC 169. Ex
• TF 45. MC 54. MC 63. MC 72. MC 140. MC 170. Ex

9. TF 46. MC 55. MC 64. MC 73. MC 141. MC 185. C

10. TF 47. MC 56. MC 65. MC 74. MC 152. BE 186. C

11. TF 48. MC 57. MC 66. MC 75. MC 153. BE 187. C

• TF 49. MC 58. MC 67. MC 76. MC 165. Ex
• TF 50. MC 59. MC 68. MC 77. MC 166. Ex

Study Objective 3

• TF 81. MC 85. MC 89. MC 93. MC 142. MC 173. Ex

16. TF 82. MC 86. MC 90. MC 94. MC 143. MC 188. C

• TF 83. MC 87. MC 91. MC 95. MC 171. Ex
• TF 84. MC 88. MC 92. MC 96. MC 172. Ex

Study Objective 4

19. TF 33. TF 101. MC 106. MC 144. MC 155. BE 190. C

20. TF 97. MC 102. MC 107. MC 145. MC 156. BE 191. C

21. TF 98. MC 103. MC 108. MC 146. MC 157. BE

• TF 99. MC 104. MC 109. MC 147. MC 174. Ex

23. TF 100. MC 105. MC 110. MC 154. BE 189. C

Study Objective 5

• TF 27. TF 112. MC 115. MC 118. MC 177. Ex
• TF 34. TF 113. MC 116. MC 175. Ex 192. C
• TF 111. MC 114. MC 117. MC 176. Ex

The Recording Process

• - 3

SUMMARY OF STUDY OBJECTIVES BY QUESTION TYPE

Study Objective 6

• TF 120. MC 124. MC 128. MC 148. MC 178. Ex
• TF 121. MC 125. MC 129. MC 149. MC 179. Ex
• TF 122. MC 126. MC 130. MC 158. BE 180. Ex

119. MC 123. MC 127. MC 131. MC 159. BE

Study Objective 7

• TF 132. MC 135. MC 138. MC 160. BE 182. Ex
• TF 133. MC 136. MC 150. MC 161. BE 183. Ex
• TF 134. MC 137. MC 151. MC 181. Ex 193. C

Note: TF = True-False BE = Brief Exercise C = Completion

MC = Multiple Choice Ex = Exercise

The chapter also contains one set of ten Matching questions and five Short-Answer Essay questions.

Test Bank for Financial Accounting, Sixth Edition

• - 4

CHAPTER STUDY OBJECTIVES

• Explain what an account is and how it helps in the recording process. An account is a

record of increases and decreases in specific asset, liability, and stockholders’ equity items.

• Define debits and credits and explain their use in recording business transactions. The

terms debit and credit are synonymous with left and right. Assets, dividends, and expenses are increased by debits and decreased by credits. Liabilities, common stock, retained earnings and revenues are increased by credits and decreased by debits.

• Identify the basic steps in the recording process. The basic steps in the recording process

are: (a) analyze each transaction for its effects on the accounts, (b) enter the transaction information in a journal, (c) transfer the journal information to the appropriate accounts in the ledger.

• Explain what a journal is and how it helps in the recording process. 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 readily compared.

• Explain what a ledger is and how it helps in the recording process. The ledger is the

entire group of accounts maintained by a company. The ledger keeps in one place all the information about changes in specific account balances.

• Explain what posting is and how it helps in the recording process. 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.

• Prepare a trial balance and explain its purposes. A trial balance is a list of accounts and

their balances at a given 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.