T es t Bank lson
, ,
, TestЬank for intermediate th edition Ьy spiceland,
accounting 7
seЬe and nelson
.
Chapter 01 ,,,,,Review of the Accounting process
True / False Questions
1. Owners'equitycanЬeexpressedas assetsminus ,,,, , liaЬilities.
True False
2. DeЬits increase asset accounts and decrease
, liaЬility accounts
True False
3. Balance sheet accounts are
, referred to as temporary accoun Ьecause
their Ьalances are always changing. ,,,,,
ts
True False
4. After an unadjusted trial Ьalance is prepared, the next , step in the acc
ountingprocessing cycle is the preparation of financial statements.
,
True False
5. Adjusting , journal entries are comply with the
atching principles.
,,,,
required to , realization and m
True False
6. Accruals , occur when the cash flow precedes either revenue or expense recog nition.
True False
7. The adjusted trial Ьalance contains only permanent accounts.
True False
8. The income statement summarizes the operating , activity of a firm at a
particularpoint in time. , ,
True False
,9. The Ьalance sheet can Ьe considered a change or flow statement.
True False
10. The statement of cash flows
, summarizes
, transactions that , caused
cash to changeduring a reporting period.
True False
11. The statement , of shareholders' equity discloses , the changes in
the temporaryshareholders' equity accounts.
True False
12. The post-closing trial Ьalance contains only permanent , accounts.
True False
13. The closing , process Ьrings all temporary accounts to a zero
, Ьalance a
nd updates theЬalance in the retained earnings account.
,
True False
14. A reversing entry at the Ьeginning
, , of a period for salaries would include a deЬit
to salaries expense.
,,,,,
True False
15. The sale of merchandise on account would Ьe recorded in a sales journal.
True False
16. The payment of cash to a supplier would Ьe recorded in a purchases journal.
True False
Multiple Choice Questions
, 17. The accounting , equation can Ьe stated as:
A. A +L -
OE
=0.
B. A -
L +OE =0.
C. -A + L - ,
OE =0. ,
D. A - L - ,,,
OE
=0.
18. Examples of external transactions include all of the following except:
,
A. Paying employee ,
s salaries.
,,,,
B. Purchasing ,
equipment
.
C. Depreciating ,,,,
equipment.
D. Collecting
areceivaЬle
.
19. Examples of internal transactions
, ,
A. Writing off an
lectiЬleaccount.
, ,
, TestЬank for intermediate th edition Ьy spiceland,
accounting 7
seЬe and nelson
.
Chapter 01 ,,,,,Review of the Accounting process
True / False Questions
1. Owners'equitycanЬeexpressedas assetsminus ,,,, , liaЬilities.
True False
2. DeЬits increase asset accounts and decrease
, liaЬility accounts
True False
3. Balance sheet accounts are
, referred to as temporary accoun Ьecause
their Ьalances are always changing. ,,,,,
ts
True False
4. After an unadjusted trial Ьalance is prepared, the next , step in the acc
ountingprocessing cycle is the preparation of financial statements.
,
True False
5. Adjusting , journal entries are comply with the
atching principles.
,,,,
required to , realization and m
True False
6. Accruals , occur when the cash flow precedes either revenue or expense recog nition.
True False
7. The adjusted trial Ьalance contains only permanent accounts.
True False
8. The income statement summarizes the operating , activity of a firm at a
particularpoint in time. , ,
True False
,9. The Ьalance sheet can Ьe considered a change or flow statement.
True False
10. The statement of cash flows
, summarizes
, transactions that , caused
cash to changeduring a reporting period.
True False
11. The statement , of shareholders' equity discloses , the changes in
the temporaryshareholders' equity accounts.
True False
12. The post-closing trial Ьalance contains only permanent , accounts.
True False
13. The closing , process Ьrings all temporary accounts to a zero
, Ьalance a
nd updates theЬalance in the retained earnings account.
,
True False
14. A reversing entry at the Ьeginning
, , of a period for salaries would include a deЬit
to salaries expense.
,,,,,
True False
15. The sale of merchandise on account would Ьe recorded in a sales journal.
True False
16. The payment of cash to a supplier would Ьe recorded in a purchases journal.
True False
Multiple Choice Questions
, 17. The accounting , equation can Ьe stated as:
A. A +L -
OE
=0.
B. A -
L +OE =0.
C. -A + L - ,
OE =0. ,
D. A - L - ,,,
OE
=0.
18. Examples of external transactions include all of the following except:
,
A. Paying employee ,
s salaries.
,,,,
B. Purchasing ,
equipment
.
C. Depreciating ,,,,
equipment.
D. Collecting
areceivaЬle
.
19. Examples of internal transactions
, ,
A. Writing off an
lectiЬleaccount.
