TEST BANK FOR ACCOUNTING 26TH EDITION CARL S. WARREN, JAMES M. REEVE, JONATHAN DUCHAC || newest edition 100% verified A+

,CHAPTER 2: ANALYZING TRANSACTIONS ki k i ki




1. Accounts are records of increases and decreases in individual financial statement items.
ki ki ki ki ki ki ki ki ki ki ki




a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering LEARNI ki ki




NG OBJECTIVES: ki ACCT.WARD.16.02-01 - 02- ki ki




01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 -
ki ki ki ki




Purpose
ki



ACCT.ACBSP.APC.02 - GAAP ki ki



ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki




2. A chart of accounts is a listing of accounts that make up the journal.
ki ki ki ki ki ki ki ki ki ki ki ki ki



a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering LEARNI ki ki




NG OBJECTIVES: ki ACCT.WARD.16.02-01 - 02- ki ki




01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 -
ki ki ki ki




Purpose
ki



ACCT.ACBSP.APC.02 - GAAP ki ki



ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki




3. The chart of accounts should be the same for each business.
ki ki ki ki ki ki ki ki ki ki



a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ki ki




ING OBJECTIVES: ki ACCT.WARD.16.02-01 - 02- ki ki




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
ki ki ki ki




GAAP
ki



ACCT.ACBSP.APC.03 - Business Forms ki ki ki


ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki

,Chapter 2: Analyzing Transactions


4. Accounts payable are accounts that you expect will be paid to you.
ki ki ki ki ki ki ki ki ki ki ki



a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ki ki




ING OBJECTIVES:
ki ACCT.WARD.16.02-01 - 02- ki ki




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
ki ki ki ki




GAAP
ki



ACCT.ACBSP.APC.04 - Cash vs. Accrual ki ki ki ki



ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki




5. Consuming goods and services in the process of generating revenues results in expenses.
ki ki ki ki ki ki ki ki ki ki ki ki




a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering LEARN ki ki




ING OBJECTIVES:
ki ACCT.WARD.16.02-01 - 02- ki ki




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
ki ki ki ki




GAAP
ki



ACCT.ACBSP.APC.06 - Recording Transactions ki ki ki



ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki




6. Prepaid expenses are an example of an expense.
ki ki ki ki ki ki ki




a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ki ki




ING OBJECTIVES:
ki ACCT.WARD.16.02-01 - 02- ki ki




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
ki ki ki ki




GAAP
ki



ACCT.ACBSP.APC.04 - Cash vs. Accrual ki ki ki ki


ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki

, Chapter 2: Analyzing Transactions


7. The Unearned Revenues account is an example of a liability.
ki ki ki ki ki ki ki ki ki



a. True
b. False

ANSWER: True
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ki ki




ING OBJECTIVES:
ki ACCT.WARD.16.02-01 - 02- ki ki




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
ki ki ki ki




GAAP
ki



ACCT.ACBSP.APC.04 - Cash vs. Accrual ki ki ki ki



ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki




8. The Drawings account is an example of an expense.
ki ki ki ki ki ki ki ki




a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ki ki




ING OBJECTIVES:
ki ACCT.WARD.16.02-01 - 02- ki ki




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
ki ki ki ki




GAAP
ki



ACCT.ACBSP.APC.06 - Recording Transactions ki ki ki



ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki




9. Accounts in the ledger are usually maintained in alphabetical order.
ki ki ki ki ki ki ki ki ki




a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ki ki




ING OBJECTIVES:
ki ACCT.WARD.16.02-01 - 02- ki ki




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
ki ki ki ki




GAAP
ki



ACCT.ACBSP.APC.06 - Recording Transactions ki ki ki


ACCT.AICPA.FN.03 - ki



MeasurementBUSPROG: Analytic ki ki ki