DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
m m m m m m m m m m
on Wild m
Chapter 02 m
m Accounting for Business Transaction
m m m
s
Truem/mFalsemQuestions
1. Themfirstmstep minmthemprocessing mofmamtransactionmismto manalyzemthemtransactionmand ms
ourcemdocuments.
True False
2. Preparationmofmamtrialmbalancemismthemfirstmstep minmprocessing mamfinancialmtransaction.
True False
3. Sourcemdocumentsmprovidemevidencemofmbusinessmtransactionsmand maremthembasismfor maccoun
ting mentries.
True False
4. Itemsmsuchmasmsalesmtickets,mbankmstatements,mchecks,mand mpurchasemordersmaremexamples
m ofmambusiness'smsourcemdocuments.
True False
5. Anmaccountmismamrecord mofmincreasesmand mdecreasesminmamspecificmasset,mliability,mequity,mreven
ue,mor mexpensemitem.
True False
6. A mcustomer'smpromisemto mpaymonmcreditmismclassified masmanmaccount mpayablembymthems
eller.mTrue False
2-1
Copyrightm©m2016 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
m m m m m m m m m m
on Wild m
7. Dividendsmpaid mto mthemstockholdersmaremambusinessmexpense.
True False
8. Thempurchasemofmland mand mbuildingsmwillmgenerallymbemrecorded minmthemsamemledger maccount.
True False
9. Unearned mrevenuesmaremclassified masmliabilities.
True False
10. Cashmpaid mto mstockholdersmbymthembusinessmofmamcorporationmand mused mfor mpersonalmexpenses,msh
ould mbemtreated masmanmexpensemofmthembusiness.
True False
11. Whenmamcompanymprovidesmservicesmfor mwhichmcashmwillmnotmbemreceived muntilmsomemfuturemdat
e,mthemcompanymshould mrecord mthemamountmcharged masmaccountsmreceivable.
True False
12. A mcompany'smchartmofmaccountsmismamlistmofmallmthemaccountsmused mand mincludesmanmidentific
ationmnumber massigned mto meachmaccount.
True False
13. Anmaccount'smbalancemismthemdifferencembetweenmthemtotalmdebitsmand mtotalmcreditsmfor mthemacc
ount,mincluding manymbeginning mbalance.
True False
14. Themrightmsidemofmanmaccountmismcalled mthemdebit msi
de.mTrue False
2-2
Copyrightm©m2016 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
m m m m m m m m m m
on Wild m
15. Inmamdouble-
entrymaccounting msystem,mthemtotalmdollar mamountmdebited mmustmalwaysmequalmthemtotalmdollar m
amountmcredited.
True False
16. Increasesminmliabilitymaccountsmaremrecorded masmdebits.
True False
17. Debitsmincreasemassetmand mexpensemaccounts.
True False
18. Creditsmalwaysmincreasemaccountmbalance
s.mTrue False
19. Creditingmanmexpensemaccountmdecreasesmit.
True False
20. A mrevenuemaccountmnormallymhasmamdebitmbalance.
True False
21. Assetmaccountsmaremnormallymdecreased mbymdebits.
True False
22. Debit mmeansmincreasemand mcredit mmeansmdecreasemfor mallmaccou
nts.mTrue False
23. Assetmaccountsmnormallymhavemdebitmbalancesmand mrevenuemaccountsmnormallymhave mcreditmbalances.
True False
2-3
Copyrightm©m2016 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
m m m m m m m m m m
on Wild m
24. A mdividend mnormallymhasmamdebitmbalance.
True False
25. A mdebitmentrymismalwaysmanmincreaseminmthemaccount.
True False
26. A mtransactionmthatmcreditsmanmassetmaccountmand mcreditsmamliabilitymaccountmmustmalso maffectmo
nemor mmoremother maccounts.
True False
27. A mtransactionmthatmdecreasesmamliabilitymand mincreasesmanmassetmmustmalso maffectmonemor mmorem
other maccounts.
True False
28. Ifminsurancemcoveragemfor mthemnextmtwo myearsmismpaid mfor minmadvance,mthemamountmofmthempaym
entmismdebited mto manmassetmaccountmcalled mPrepaid mInsurance.
True False
29. Thempurchasemofmsuppliesmonmcreditmshould mbemrecorded mwithmamdebitmto mSuppliesmand mamcre
ditmto mAccountsmPayable.
True False
30. Ifmamcompanympurchasesmequipmentmpaying mcash,mthemjournalmentrymto mrecord mthismtransactio
nmwillmincludemamdebitmto mCash.
True False
31. Ifmamcompanymprovidesmservicesmto mamcustomer monmcredit,mthemcompanymproviding mthemservicemsh
ould mcreditmAccountsmReceivable.
True False
2-4
Copyrightm©m2016 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
m m m m m m m m m m
on Wild m
Chapter 02 m
m Accounting for Business Transaction
m m m
s
Truem/mFalsemQuestions
1. Themfirstmstep minmthemprocessing mofmamtransactionmismto manalyzemthemtransactionmand ms
ourcemdocuments.
True False
2. Preparationmofmamtrialmbalancemismthemfirstmstep minmprocessing mamfinancialmtransaction.
True False
3. Sourcemdocumentsmprovidemevidencemofmbusinessmtransactionsmand maremthembasismfor maccoun
ting mentries.
True False
4. Itemsmsuchmasmsalesmtickets,mbankmstatements,mchecks,mand mpurchasemordersmaremexamples
m ofmambusiness'smsourcemdocuments.
True False
5. Anmaccountmismamrecord mofmincreasesmand mdecreasesminmamspecificmasset,mliability,mequity,mreven
ue,mor mexpensemitem.
True False
6. A mcustomer'smpromisemto mpaymonmcreditmismclassified masmanmaccount mpayablembymthems
eller.mTrue False
2-1
Copyrightm©m2016 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
m m m m m m m m m m
on Wild m
7. Dividendsmpaid mto mthemstockholdersmaremambusinessmexpense.
True False
8. Thempurchasemofmland mand mbuildingsmwillmgenerallymbemrecorded minmthemsamemledger maccount.
True False
9. Unearned mrevenuesmaremclassified masmliabilities.
True False
10. Cashmpaid mto mstockholdersmbymthembusinessmofmamcorporationmand mused mfor mpersonalmexpenses,msh
ould mbemtreated masmanmexpensemofmthembusiness.
True False
11. Whenmamcompanymprovidesmservicesmfor mwhichmcashmwillmnotmbemreceived muntilmsomemfuturemdat
e,mthemcompanymshould mrecord mthemamountmcharged masmaccountsmreceivable.
True False
12. A mcompany'smchartmofmaccountsmismamlistmofmallmthemaccountsmused mand mincludesmanmidentific
ationmnumber massigned mto meachmaccount.
True False
13. Anmaccount'smbalancemismthemdifferencembetweenmthemtotalmdebitsmand mtotalmcreditsmfor mthemacc
ount,mincluding manymbeginning mbalance.
True False
14. Themrightmsidemofmanmaccountmismcalled mthemdebit msi
de.mTrue False
2-2
Copyrightm©m2016 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
m m m m m m m m m m
on Wild m
15. Inmamdouble-
entrymaccounting msystem,mthemtotalmdollar mamountmdebited mmustmalwaysmequalmthemtotalmdollar m
amountmcredited.
True False
16. Increasesminmliabilitymaccountsmaremrecorded masmdebits.
True False
17. Debitsmincreasemassetmand mexpensemaccounts.
True False
18. Creditsmalwaysmincreasemaccountmbalance
s.mTrue False
19. Creditingmanmexpensemaccountmdecreasesmit.
True False
20. A mrevenuemaccountmnormallymhasmamdebitmbalance.
True False
21. Assetmaccountsmaremnormallymdecreased mbymdebits.
True False
22. Debit mmeansmincreasemand mcredit mmeansmdecreasemfor mallmaccou
nts.mTrue False
23. Assetmaccountsmnormallymhavemdebitmbalancesmand mrevenuemaccountsmnormallymhave mcreditmbalances.
True False
2-3
Copyrightm©m2016 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
m m m m m m m m m m
on Wild m
24. A mdividend mnormallymhasmamdebitmbalance.
True False
25. A mdebitmentrymismalwaysmanmincreaseminmthemaccount.
True False
26. A mtransactionmthatmcreditsmanmassetmaccountmand mcreditsmamliabilitymaccountmmustmalso maffectmo
nemor mmoremother maccounts.
True False
27. A mtransactionmthatmdecreasesmamliabilitymand mincreasesmanmassetmmustmalso maffectmonemor mmorem
other maccounts.
True False
28. Ifminsurancemcoveragemfor mthemnextmtwo myearsmismpaid mfor minmadvance,mthemamountmofmthempaym
entmismdebited mto manmassetmaccountmcalled mPrepaid mInsurance.
True False
29. Thempurchasemofmsuppliesmonmcreditmshould mbemrecorded mwithmamdebitmto mSuppliesmand mamcre
ditmto mAccountsmPayable.
True False
30. Ifmamcompanympurchasesmequipmentmpaying mcash,mthemjournalmentrymto mrecord mthismtransactio
nmwillmincludemamdebitmto mCash.
True False
31. Ifmamcompanymprovidesmservicesmto mamcustomer monmcredit,mthemcompanymproviding mthemservicemsh
ould mcreditmAccountsmReceivable.
True False
2-4
Copyrightm©m2016 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
