Test Bank For Intermediate Accounting 2nd Edition By Michelle L. Hanlon; Leslie Hodder; Karen K. Nelson;

, TESTtBANK




IntermediatetFinanci
altAccountingtPartt1
A




ZEUStVERNONtB.tMILLAN

, ALLtRIGHTStRESERVEDt201
5


Notparttoftthistworktcoveredtbytthetcopyrightth
ereontmaytbetreproducedtortusedtintanytformto
rtbytanytmeanst-
telectronictortmechanical,tincludingtphotocopyi

ngt–
twithouttthetwrittentpermissiontoftthetauthor.




ISBNt 978-621-95096-0-2


Publishedtby:
BANDOLINtENTERPRISE
No.t100tMontebellotVillage,tBakakengtSur,tBaguiotCityt2600,tPhilippines

TABLEtOFtCONTENTS

CHAPTERt1
OVERVIEWtOFtACCOUNTING .............................................................3
CHAPTER 1: THEORY OF ACCOUNTS REVIEWER.............................................. 3
T T T T T


CHAPTER 1 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS
T T T T T T T T T 22
CHAPTERt2
THEtACCOUNTINGtPROCESS........................................................... 24
CHAPTER 2: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 24
CHAPTER 2: THEORY OF ACCOUNTS REVIEWER........................................... 26
T T T T T


CHAPTER 2 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 36
T T T T T T T T T



CHAPTERt3
THEtCONCEPTUALtFRAMEWORKtFORtFINANCIALtREPORTINGt36
CHAPTER 3: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 36
CHAPTER 3: THEORY OF ACCOUNTS REVIEWER........................................... 37
T T T T T


CHAPTER 3 - SUGGESTED ANSWERS TO REVIEW THEORY QUESTIONS .... 54
T T T T T T T T



CHAPTERt4
CASHt&tCASHtEQUIVALENTS ........................................................ 54
CHAPTER 4: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 54
CHAPTER 4: THEORY OF ACCOUNTS REVIEWER........................................... 57
T T T T T


CHAPTER 4 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 65
T T T T T T T T T



CHAPTERt5
RECEIVABLESt(PARTt1) .................................................................. 66
CHAPTER 5: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 66
CHAPTER 5: THEORY OF ACCOUNTS REVIEWER........................................... 69
T T T T T


CHAPTER 5 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 75
T T T T T T T T T



CHAPTERt6
RECEIVABLESt(PARTt2) .................................................................. 75
CHAPTER 6: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 75
CHAPTER 6: THEORY OF ACCOUNTS REVIEWER........................................... 78
T T T T T


CHAPTER 6 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 82
T T T T T T T T T



CHAPTERt7

, CHAPTER 7 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS
T T T T T T T T T 92
CHAPTERt t t t t t t t t t t t t t t t t t t t t t t t t 8t t INVENTORIES.... 92
CHAPTER 8: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 92
CHAPTER 8: THEORY OF ACCOUNTS REVIEWER........................................... 97
T T T T T


CHAPTER 8 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 109
T T T T T T T T T



CHAPTERt9
INVESTMENTSt(PARTt1) ............................................................... 109
CHAPTER 9: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 109
CHAPTER 9: THEORY OF ACCOUNTS REVIEWER.........................................112
T T T T T


CHAPTER 9 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 122
T T T T T T T T T



CHAPTERt10
INVESTMENTSt(PARTt2) ............................................................... 122
CHAPTER 10: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 122
CHAPTER 10: THEORY OF ACCOUNTS REVIEWER ......................................127
T T T T T


CHAPTER 10 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 134
T T T T T T T T T



CHAPTERt11
INVESTMENTSt(PARTt3) ............................................................... 135
CHAPTER 11: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
T T T T T T T T T T T T 135
CHAPTER 11: THEORY OF ACCOUNTS REVIEWER ......................................135
T T T T T


CHAPTER 11 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 137
T T T T T T T T T




Chaptert1tOvervi
ewtoftAccounting
Chaptert1:tTheorytoftAccountstReviewert
DefinitiontoftAccounting
1. Accountingthastbeentgiventvarioustdefinitions,twhichtoftthetfollowingtistnottonetoftthosetdefinitions
a. Accountingtistatservicetactivity.tItstfunctiontisttotprovidetquantitativetinformation,tprimarilytfinancialtintnatur
e,taboutteconomictentitiestthattistintendedttotbetusefultintmakingteconomictdecisions.
b. Accountingtistthetarttoftrecording,tclassifying,tandtsummarizingtintatsignificanttmannertandtinttermstoftmoney
,ttransactionstandteventstwhichtare,tintparttoftattleast,toftatfinancialtcharactertandtinterpretingtthetresultstther
eof.
c. Accountingtistatsystematictprocesstoftobjectivelytobtainingtandtevaluatingtevidencetregardingtassertionstabo
utteconomictactionstandteventsttotascertaintthetdegreetoftcorrespondencetbetweentthesetassertionst andtesta
blishedtcriteriatandtcommunicatingtthetresultsttotinterestedtusers.
d. Accountingtistthetprocesstoftidentifying,tmeasuring,tandtcommunicatingteconomictinformationttotpermittinfo
rmedtjudgmenttandtdecisionstbytuserstoftinformation.

2. Itt ist thet firstt processt usedt int accounting.t Itt referst tot thet identificationt oft eventst ast tot whethert theyt aretrec
ognizedtortnottintthetfinancialtstatements.
a.tIdentifying b.tMeasuringt c.tCommunicating d.tAuditing

3. Thetfollowingtstatementstcorrectlytreferttotthetaccountingtprocess.
I. Measuringtistthetaccountingtprocesstoftanalyzingtbusinesstactivitiestasttotwhethertortnotttheytwilltbetrecogniz
edtintthetbooks.
II. Recognitiontrefersttotthetprocesstoftincludingttheteffectstoftanteventtintthettotalstoftthetstatementtoftfinancialtp
ositiontortthetstatementtoftprofittortlosstandtothertcomprehensivetincometthroughtmemot entries.
III. Disclosuretofteventstintthetnotesttotfinancialtstatementtwithouttincludingtintthettotalstoftthetstatementtoftfinan
cialtpositiontortstatementtoftprofittortlosstandtothertcomprehensivetincometistnottantapplicationtoftthetrecogni
tiontprinciple.
IV. Antaccountableteventtistanteventtthatthastanteffecttontthetassets,tliabilitiestortequitytoftantentitytandtitsteffecttc
antbetmeasuredtreliably.
V. Sociologicaltandtpsychologicaltmatterstaretwithintthetscopetoftaccounting.
a.tI,tII,tIII,tIV,tV b.tI,tII,tIII,tIV c.tIV d.tIII,tIV

TypestoftEvents
4. Theseteventstinvolvetchangestinttheteconomictresourcestortobligationstoftentitiestinvolvingtothertentitiestbuttdotn