Exam (elaborations) Test Bank For Accounting 9th Edition Horngren, Harrison, Oliver

Exam (elaborations) Test Bank For Accounting 9th Edition Horngren, Harrison, Oliver Chapter 2: Recording Business Transactions 2.1-1 An account is the detailed record of the changes in a particular asset, liability, or owner’s equity. Answer: True LO: 2-1 Difficulty: 1 EOC Ref: Accounting Vocabulary AACSB: Reflective Thinking AICPA Business Perspective Competencies: Strategic/Critical Thinking AICPA Functional Competencies: Reporting 2.1-2 A chart of accounts is the book holding all of the company's accounts. Answer: False LO: 2-1 Difficulty: 1 EOC Ref: Accounting Vocabulary AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-3 A trial balance is the list of all a company's accounts along with their account numbers. Answer: False LO: 2-1 Difficulty: 1 EOC Ref: Accounting Vocabulary AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Measurement, Reporting 2.1-4 A journal is a chronological record of transactions. Answer: True LO: 2-1 Difficulty: 1 EOC Ref: S2-1 AACSB: Reflective Thinking AICPA Business Perspective Competencies: Strategic/Critical Thinking AICPA Functional Competencies: Reporting 2.1-5 In a typical chart of accounts, liabilities appear before assets. Answer: False LO: 2-1 Difficulty: 1 EOC: P2-27A AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 1 Full file at 2.1-6 A trial balance is a list of all of the accounts with their balances. Answer: True LO: 2-1 Difficulty: 1 EOC Ref: Accounting Vocabulary AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-7 Expenses are increases in owner’s equity caused by providing goods or services for customers. Answer: False LO: 2-1 Difficulty: 1 EOC Ref: S2-2 AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-8 Which of the following accounts is NOT an example of an asset? A) Accounts receivable B) Cash C) Building D) Notes payable Answer: D LO: 2-1 Difficulty: 1 EOC Ref: S2-3 AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-9 Which of the following accounts is NOT an example of a liability? A) Wages payable B) Notes payable C) Accounts payable D) Accounts receivable Answer: D LO: 2-1 Difficulty: 1 EOC Ref: S2-3 AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2 Full file at 2.1-10 Which of the following accounts is an example of an owner’s equity account? A) Accounts payable B) Equipment C) Cash D) Drawing Answer: D LO: 2-1 Difficulty: 1 EOC Ref: S2-3 AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-11 Accountants first record transactions in the: A) chart of accounts. B) trial balance. C) journal. D) ledger. Answer: C LO: 2-1 Difficulty: 1 EOC Ref: S2-4 AACSB: Analytic Skills AICPA Business Perspective Competencies: Strategic/Critical Thinking AICPA Functional Competencies: Reporting 2.1-12 Which of the following accounts is an asset? A) Salary expense B) Accounts payable C) Service revenue D) Prepaid expenses Answer: D LO: 2-1 Difficulty: 1 EOC Ref: S2-3 AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 3 Full file at 2.1-13 Which of the following accounts is a liability? A) Accounts payable B) Prepaid expenses C) Salary expense D) Service revenue Answer: A LO: 2-1 Difficulty: 1 EOC Ref: S2-3 AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-14 Which of the following accounts is an owner’s equity account? A) Accrued liability B) Accounts payable C) Prepaid expense D) Capital Answer: D LO: 2-1 Difficulty: 1 EOC Ref: S2-3 AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-15 Prepaid expenses are recorded as: A) assets. B) liabilities. C) debits and credits. D) owner’s equity. Answer: A LO: 2-1 Difficulty: 1 EOC: S2-3 AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 4 Full file at 2.1-16 In a typical chart of accounts, what information is provided along with the account name? A) Account balance B) Account number C) Dates of transactions D) Transaction amounts Answer: B LO: 2-1 Difficulty: 1 EOC: P2-27A AACSB: Analytic Skills AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-17 Which of the following are accrued liabilities? A) Taxes payable B) Interest payable C) Salary payable D) All of the above Answer: D LO: 2-1 Difficulty: 1 EOC: S2-1 AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-18 Which of the following accounts is an example of a liability? A) Service revenue B) Building C) Accounts receivable D) Notes payable Answer: D LO: 2-1 Difficulty: 1 EOC Ref: S2-3 AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-19 A listing of all account titles in numerical order is a(n): A) ledger. B) journal. C) income statement. D) chart of accounts. Answer: D LO: 2-1 Difficulty: 1 EOC: Accounting Vocabulary AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 5 Full file at 2.1-20 Which of the following accounts is an asset? A) Cash B) Notes payable C) Drawing D) Expenses Answer: A LO: 2-1 Difficulty: 2 EOC: S2-3 AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory AICPA Functional Competencies: Reporting 2.1-21 Which of the following is NOT part of owner’s equity? A) Accounts receivable B) Capital C) Notes payable D) Both A and C Answer: D LO: 2-1 Difficulty: 1 EOC: S2-3 AACSB: Reflective Thinking AICPA Business Perspective Competencies: Legal/Regulatory