Intermediate Accounting 3rd Edition, by Gordon, Raedy & Sannella,

TEST BANK For Intermediate Accounting 3rd Edition, by
Gordon, Raedy & Sannella, Verified Chapters 1 - 22,
Complete Newest Version


Which of the following serves to relay important information about a transaction to
the accountant? - ANSWER:Sales invoices, bills from suppliers, and cash register
tapes

Norton Corp. has revenues of $5,000 and expenses of $2,000. What is the total
effect on retained earnings? - ANSWER:Increases $3,000.

Transaction analysis involves which of the following? - ANSWER:Identifying the
elements involved in the transaction
Identifying the accounts to be debited and credited

The payment of an account for supplies purchased in the previous month will ______
the cash account. - ANSWER:Decrease

A ______ account represents the basic financial position elements of the accounting
equation and a _____ account keeps track of the changes in the retained earnings
component of shareholders' equity. - ANSWER:permanent; temporary

Repetitive transactions such as sales or purchases are usually recorded in a(n)
______ rather than the general journal. - ANSWER:special journal

Sales invoices, bills from suppliers, and cash register tapes that relay information to
the accountant are referred to as _______ documents. - ANSWER:Source

In a journal entry, the amount to be _____ is entered in the first column, and the
amount to be _____ is entered in the second column - ANSWER:debited; credited

The process of reviewing the source documents to determine the dual effect on the
accounting equation and the specific elements involved is called -
ANSWER:transaction analysis

The process of transferring debit and credit information from the journal to the
ledger is called: - ANSWER:posting

Royce Corporation pays for supplies purchased in the previous month. What is the
effect on the accounting equation for the payment of the supplies? -
ANSWER:Decrease Liabilites / Decrease Assests

, Which of the following steps occurs only at the end of the year? - ANSWER:Close the
temporary accounts to retained earnings

A chronological record of all economic events affecting a firm are recorded in a(n) -
ANSWER:Journal

A general journal entry should contain which of the following? - ANSWER:Supporting
Explanations/ The date/ The accounts and amounts debited and credited.

Identify which transaction would result in the following journal entry: debit to Cash
for $60,000 and credit to Common stock for $60,000. - ANSWER:Issue stock to
investors

The process of transferring information from a journal entry to the specific accounts
affected in the general ledger is referred to as - ANSWER:Posting

The payment of an account for supplies purchased in the previous month will ______
the cash account. - ANSWER:Decrease *

Beck Company borrowed $50,000 from the bank and signed a note. The journal
entry Beck makes to record this transaction includes - ANSWER:credit to notes
payable $50,000
debit to cash for $50,000

Place the steps in the accounting process in the correct order.
- Prepare the the unadjusted trial balance
- Recored the transaction
- Analyze the transaction
- Post the journal to the general ledger - ANSWER:-Analyze the transaction
-Record the transaction
-Post from the journal to the general ledger
- Prepare the unadjusted trial balance

In step 3 of the accounting processing cycle: - ANSWER:the transaction is recorded in
a journal

To record the issuance of common stock at par value, - ANSWER:Debit Cash/ Credit
Common Stock

The process of transferring information from the journal to the ledger is referred to
as - ANSWER:Posting

When a company pays rent in advance, prepaid rent is ________ and cash is
________. - ANSWER:Debited / Credited