Solution Manual for Horngren-s Managerial Chapters Accounting, 7th Edition by Tracie Miller-Nobles

DOWNLOAD THE Test Bank for Horngrens Financial and Managerial Accou
a a a a a a a a a

nting The Financial Chapters 5th Edition Miller-Nobles
a a a a a a




Horngren'saFinanciala&aManagerialaAccounting,a5ea(Miller)aChapt
era2a RecordingaBusinessaTransactions

LearningaObjectivea2-1

1) Whichaisaaatrueastatementaregardingatheaaccountingaequation?
A) Theaequationacanabeastatedaasaassetsaminusaliabilitiesaequalsaequity.
B) Theaequationaconsistsaofathreeaparts:aassets,aliabilities,aandanetaincome.
C) Theaequationaisaanaoptionalatoolaforaaccountantsatoause.
D) Theaequationadoesanotaneedatoabalanceaduringaaaspecificaperiod.
aAnswer:a A

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a WhataisaanaAccount?a(H1)

2) Aapaymentaofaanaexpenseainaadvanceaisacalledaaaprepaidaexpense.
aAnswer:a TRUE

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Assets

3) Anaaccountsareceivablearequiresatheabusinessatoapayacashainatheafuture.
aAnswer:a FALSE

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Assets

4) Theaaccountatitleausedaforarecordingatheapaymentaofarentainaadvanceaforaanaofficeabuildingaisa .
A) PrepaidaRent
B) RentaPayable
C) RentaRevenue
D) RentaExpense
aAnswer:a A

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Assets




1
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,DOWNLOAD THE Test Bank for Horngrens Financial and Managerial Accou
a a a a a a a a a

nting The Financial Chapters 5th Edition Miller-Nobles
a a a a a a




5) Whichaofatheafollowingaisaanaassetaaccount?
A) WagesaPayable
B) NotesaPayable
C) UnearnedaRevenue
D) AccountsaReceivable
aAnswer:a D

Diff:a1
LO:a 2-1
AACSB:a Applicationaofaknowledge
aAICPAaFunctional:a Measurementa

PEaQuestionaType:a Application
H2a:a Assets

6) Aacustomer'sapromiseatoapayainatheafutureaforaservicesaoragoodsasoldaisacalledaa(n)a .
A) AccountsaReceivable
B) AccountsaPayable
C) UnearnedaRevenue
D) NotesaPayable
aAnswer:a A

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Assets

7) Whichaofatheafollowingaisaanaassetaaccount?
A) SalariesaExpense
B) AccountsaPayable
C) ServiceaRevenue
D) PrepaidaExpense
aAnswer:a D

Diff:a1
LO:a 2-1
AACSB:a Applicationaofaknowledge
aAICPAaFunctional:a Measurementa

PEaQuestionaType:a Application
H2a:a Assets

8) Whichaofatheafollowingaisaanaassetaaccount?
A) Cash
B) NotesaPayable
C) Dividends
D) UnearnedaRevenue
aAnswer:a A

Diff:a2
LO:a 2-1
AACSB:a Applicationaofaknowledge
aAICPAaFunctional:a Measurementa

PEaQuestionaType:a Application
H2a:a Assets


2
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,DOWNLOAD THE Test Bank for Horngrens Financial and Managerial Accou
a a a a a a a a a

nting The Financial Chapters 5th Edition Miller-Nobles
a a a a a a




9) Provideaanaexplanationaforaeachaofatheafollowaassetaaccounts.

AccountaName Explanation
AccountsaReceivable




PrepaidaExpense




NotesaReceivable




Answer:
AccountaName Explanation
Aacustomer'sapromiseatoapayainatheafutureaf
oraservicesaoragoodsasold.a Often
AccountsaReceivable describedaasa"OnaAccount."
Aapaymentaofaanaexpenseainaadvance.a Itaisa
consideredaanaassetabecauseatheaprepayme
ntaprovidesaaabenefitainathe
PrepaidaExpense future.
Aawrittenapromiseathataaacustomerawillapa
yaaafixedaamountaofamoneyaandainterestaby
aaacertainadateainatheafuture.a Often

NotesaReceivable moreaformalathanaanaAccountsaReceivable.
Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Assets

10) Liabilitiesaareaeconomicaresourcesathataareaexpectedatoabenefitatheabusinessainatheafuture.
aAnswer:a FALSE

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Liabilities




3
Copyrighta©a2016aPearsonaEducation,aInc.
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, DOWNLOAD THE Test Bank for Horngrens Financial and Managerial Accou
a a a a a a a a a

nting The Financial Chapters 5th Edition Miller-Nobles
a a a a a a




11) Aapayableainvolvesaaafutureareceiptaofacash.
aAnswer:a FALSE

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Liabilities

12) Unearnedarevenueaisaaaliabilityaaccount.
aAnswer:a TRUE

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Liabilities

13) representsaaadebtaowedaforarentingaaabuildingacurrently.
A) PrepaidaRent
B) RentaPayable
C) RentaRevenue
D) RentaExpense
aAnswer:a B

Diff:a1
LO:a 2-1
AICPAaFunctional:a MeasurementaP
EaQuestionaType:a Concept
H2a:a Liabilities

14) Whichaofatheafollowingaisaaaliabilityaaccount?
A) AccountsaReceivable
B) Cash
C) Building
D) NotesaPayable
aAnswer:a D

Diff:a1
LO:a 2-1
AACSB:a Applicationaofaknowledge
aAICPAaFunctional:a Measurementa

PEaQuestionaType:a Application
H2a:a Liabilities




4
Copyrighta©a2016aPearsonaEducation,aInc.
mynursytest.store