Exam (elaborations) TEST BANK FOR Fundamental Accounting Principles by John Wild, Ken Shaw and Barbara Chiappetta 21st Edition (1)

1. The first step in the processing of a transaction is to analyze the transaction and source documents. TRUE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C1 Explain the steps in processing transactions and the role of source documents. Topic: Processing Transactions Wild - Chapter 02 #1 2. Preparation of a trial balance is the first step in the analyzing and recording process. FALSE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C1 Explain the steps in processing transactions and the role of source documents. Topic: Processing Transactions Wild - Chapter 02 #2 3. Source documents provide evidence of business transactions and are the basis for accounting entries. TRUE AACSB: Communication AICPA BB: Industry click it ,it has the solutions manual and test bank contact me: AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C1 Explain the steps in processing transactions and the role of source documents. Topic: Processing Transactions Wild - Chapter 02 #3 4. Items such as sales tickets, bank statements, checks, and purchase orders are source documents. TRUE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C1 Explain the steps in processing transactions and the role of source documents. Topic: Processing Transactions Wild - Chapter 02 #4 5. An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. TRUE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C2 Describe an account and its use in recording transactions. Topic: Accounts Wild - Chapter 02 #5 6. A customer's promise to pay is called an account payable to the seller. FALSE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C2 Describe an account and its use in recording transactions. Topic: Accounts Wild - Chapter 02 #6 7. Withdrawals by the owner are a business expense. FALSE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C2 Describe an account and its use in recording transactions. Topic: Accounts Wild - Chapter 02 #7 click it ,it has the solutions manual and test bank contact me: 8. Land and buildings are generally recorded in the same ledger account. FALSE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C2 Describe an account and its use in recording transactions. Topic: Accounts Wild - Chapter 02 #8 9. Unearned revenues are liabilities. TRUE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C2 Describe an account and its use in recording transactions. Topic: Accounts Wild - Chapter 02 #9 10. Cash withdrawn by the owner of a proprietorship should be treated as an expense of the business. FALSE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-C2 Describe an account and its use in recording transactions. Topic: Accounts Wild - Chapter 02 #10 11. When a company provides services for which cash will not be received until some future date, the company should record the amount charged as unearned revenue. FALSE AACSB: Communication AICPA BB: Industry AICPA FN: Decision Making