DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
g g g g g g g g g g
on Wild g
Chapter 02 g
g Accounting for Business Transactions
g g g
Trueg/gFalsegQuestions
1. Thegfirstgstepgingthegprocessinggofgagtransactiongisgtoganalyzegthegtransactiongandgsource
g documents.
True False
2. Preparationgofgagtrialgbalancegisgthegfirstgstepgingprocessinggagfinancialgtransaction.
True False
3. Sourcegdocumentsgprovidegevidencegofgbusinessgtransactionsgandgaregthegbasisgforgaccounting
g entries.
True False
4. Itemsgsuchgasgsalesgtickets,gbankgstatements,gchecks,gandgpurchasegordersgaregexamplesgofga
g business'sgsourcegdocuments.
True False
5. Angaccountgisgagrecordgofgincreasesgandgdecreasesgingagspecificgasset,gliability,gequity,grevenue,gor
g expensegitem.
True False
6. Agcustomer'sgpromisegtogpaygongcreditgisgclassifiedgasgangaccountgpayablegbygthegseller.
g True False
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7. Dividendsgpaidgtogthegstockholdersgaregagbusinessgexpense.
True False
8. Thegpurchasegofglandgandgbuildingsgwillggenerallygbegrecordedgingthegsamegledgergaccount.
True False
9. Unearnedgrevenuesgaregclassifiedgasgliabilities.
True False
10. Cashgpaidgtogstockholdersgbygthegbusinessgofgagcorporationgandgusedgforgpersonalgexpenses,gshould
g begtreatedgasgangexpensegofgthegbusiness.
True False
11. Whengagcompanygprovidesgservicesgforgwhichgcashgwillgnotgbegreceivedguntilgsomegfuturegdate,gthe
g companygshouldgrecordgthegamountgchargedgasgaccountsgreceivable.
True False
12. Agcompany'sgchartgofgaccountsgisgaglistgofgallgthegaccountsgusedgandgincludesgangidentification
g numbergassignedgtogeachgaccount.
True False
13. Angaccount'sgbalancegisgthegdifferencegbetweengthegtotalgdebitsgandgtotalgcreditsgforgthegaccount,
g includingganygbeginninggbalance.
True False
14. Thegrightgsidegofgangaccountgisgcalledgthegdebitgside.
g True False
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15. Ingagdouble-
entrygaccountinggsystem,gthegtotalgdollargamountgdebitedgmustgalwaysgequalgthegtotalgdollargamo
untgcredited.
True False
16. Increasesgingliabilitygaccountsgaregrecordedgasgdebits.
True False
17. Debitsgincreasegassetgandgexpensegaccounts.
True False
18. Creditsgalwaysgincreasegaccountgbalances.
g True False
19. Creditinggangexpensegaccountgdecreasesgit.
True False
20. Agrevenuegaccountgnormallyghasgagdebitgbalance.
True False
21. Assetgaccountsgaregnormallygdecreasedgbygdebits.
True False
22. Debitgmeansgincreasegandgcreditgmeansgdecreasegforgallgaccounts.
g True False
23. Assetgaccountsgnormallyghavegdebitgbalancesgandgrevenuegaccountsgnormallyghavegcreditgbalances.
True False
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-HillgEducation.
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24. Agdividendgnormallyghasgagdebitgbalance.
True False
25. Agdebitgentrygisgalwaysgangincreasegingthegaccount.
True False
26. Agtransactiongthatgcreditsgangassetgaccountgandgcreditsgagliabilitygaccountgmustgalsogaffectgonegor
g moregothergaccounts.
True False
27. Agtransactiongthatgdecreasesgagliabilitygandgincreasesgangassetgmustgalsogaffectgonegorgmoregother
g accounts.
True False
28. Ifginsurancegcoveragegforgthegnextgtwogyearsgisgpaidgforgingadvance,gthegamountgofgthegpaymentgis
g debitedgtogangassetgaccountgcalledgPrepaidgInsurance.
True False
29. ThegpurchasegofgsuppliesgongcreditgshouldgbegrecordedgwithgagdebitgtogSuppliesgandgagcreditgto
g AccountsgPayable.
True False
30. Ifgagcompanygpurchasesgequipmentgpayinggcash,gthegjournalgentrygtogrecordgthisgtransactiongwill
g includegagdebitgtogCash.
True False
31. Ifgagcompanygprovidesgservicesgtogagcustomergongcredit,gthegcompanygprovidinggthegservicegshould
g creditgAccountsgReceivable.
True False
2-4
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-HillgEducation.
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g g g g g g g g g g
on Wild g
Chapter 02 g
g Accounting for Business Transactions
g g g
Trueg/gFalsegQuestions
1. Thegfirstgstepgingthegprocessinggofgagtransactiongisgtoganalyzegthegtransactiongandgsource
g documents.
True False
2. Preparationgofgagtrialgbalancegisgthegfirstgstepgingprocessinggagfinancialgtransaction.
True False
3. Sourcegdocumentsgprovidegevidencegofgbusinessgtransactionsgandgaregthegbasisgforgaccounting
g entries.
True False
4. Itemsgsuchgasgsalesgtickets,gbankgstatements,gchecks,gandgpurchasegordersgaregexamplesgofga
g business'sgsourcegdocuments.
True False
5. Angaccountgisgagrecordgofgincreasesgandgdecreasesgingagspecificgasset,gliability,gequity,grevenue,gor
g expensegitem.
True False
6. Agcustomer'sgpromisegtogpaygongcreditgisgclassifiedgasgangaccountgpayablegbygthegseller.
g True False
2-1
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-HillgEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
g g g g g g g g g g
on Wild g
7. Dividendsgpaidgtogthegstockholdersgaregagbusinessgexpense.
True False
8. Thegpurchasegofglandgandgbuildingsgwillggenerallygbegrecordedgingthegsamegledgergaccount.
True False
9. Unearnedgrevenuesgaregclassifiedgasgliabilities.
True False
10. Cashgpaidgtogstockholdersgbygthegbusinessgofgagcorporationgandgusedgforgpersonalgexpenses,gshould
g begtreatedgasgangexpensegofgthegbusiness.
True False
11. Whengagcompanygprovidesgservicesgforgwhichgcashgwillgnotgbegreceivedguntilgsomegfuturegdate,gthe
g companygshouldgrecordgthegamountgchargedgasgaccountsgreceivable.
True False
12. Agcompany'sgchartgofgaccountsgisgaglistgofgallgthegaccountsgusedgandgincludesgangidentification
g numbergassignedgtogeachgaccount.
True False
13. Angaccount'sgbalancegisgthegdifferencegbetweengthegtotalgdebitsgandgtotalgcreditsgforgthegaccount,
g includingganygbeginninggbalance.
True False
14. Thegrightgsidegofgangaccountgisgcalledgthegdebitgside.
g True False
2-2
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-HillgEducation.
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,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6th Editi
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on Wild g
15. Ingagdouble-
entrygaccountinggsystem,gthegtotalgdollargamountgdebitedgmustgalwaysgequalgthegtotalgdollargamo
untgcredited.
True False
16. Increasesgingliabilitygaccountsgaregrecordedgasgdebits.
True False
17. Debitsgincreasegassetgandgexpensegaccounts.
True False
18. Creditsgalwaysgincreasegaccountgbalances.
g True False
19. Creditinggangexpensegaccountgdecreasesgit.
True False
20. Agrevenuegaccountgnormallyghasgagdebitgbalance.
True False
21. Assetgaccountsgaregnormallygdecreasedgbygdebits.
True False
22. Debitgmeansgincreasegandgcreditgmeansgdecreasegforgallgaccounts.
g True False
23. Assetgaccountsgnormallyghavegdebitgbalancesgandgrevenuegaccountsgnormallyghavegcreditgbalances.
True False
2-3
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-HillgEducation.
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24. Agdividendgnormallyghasgagdebitgbalance.
True False
25. Agdebitgentrygisgalwaysgangincreasegingthegaccount.
True False
26. Agtransactiongthatgcreditsgangassetgaccountgandgcreditsgagliabilitygaccountgmustgalsogaffectgonegor
g moregothergaccounts.
True False
27. Agtransactiongthatgdecreasesgagliabilitygandgincreasesgangassetgmustgalsogaffectgonegorgmoregother
g accounts.
True False
28. Ifginsurancegcoveragegforgthegnextgtwogyearsgisgpaidgforgingadvance,gthegamountgofgthegpaymentgis
g debitedgtogangassetgaccountgcalledgPrepaidgInsurance.
True False
29. ThegpurchasegofgsuppliesgongcreditgshouldgbegrecordedgwithgagdebitgtogSuppliesgandgagcreditgto
g AccountsgPayable.
True False
30. Ifgagcompanygpurchasesgequipmentgpayinggcash,gthegjournalgentrygtogrecordgthisgtransactiongwill
g includegagdebitgtogCash.
True False
31. Ifgagcompanygprovidesgservicesgtogagcustomergongcredit,gthegcompanygprovidinggthegservicegshould
g creditgAccountsgReceivable.
True False
2-4
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-HillgEducation.
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