Test Bank for Intermediate Accounting, 14th Canadian Edition Volume 1 by Donald E. Kieso.pdf

, TESTmBANK




IntermediatemFinanci
almAccountingmPart m
1A




ZEUSmVERNONmB. mMILLAN

, ALLmRIGHTSmRESERVED m20
15


Nompartmof mthismworkmcoveredmbymthemcopyrig
htmhereonmmaymbemreproducedmormusedminman
y mform mormbymany mmeansm-
m electronicmormmechanical,mincludingmphotoco

pyingm–
m withoutm themwrittenm permissionmofmthemauth

or.



ISBNm 978-621-95096-0-2


Publishedmby:
BANDOLINmENTERPRISE
No.m100mMontebellomVillage,mBakakengmSur,mBaguiomCity m2600,mPhilippines

TABLEmOFmCONTENTS

CHAPTERm1
OVERVIEWmOFmACCOUNTING ...................................................... 3
CHAPTER 1: THEORY OF ACCOUNTS REVIEWER .......................................... 3
M M M M M


CHAPTER 1 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 22
M M M M M M M M M




CHAPTERm2
THEmACCOUNTINGmPROCESS .....................................................24
CHAPTER 2: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
M M M M M M M M M M M M 24
CHAPTER 2: THEORY OF ACCOUNTS REVIEWER ....................................... 26
M M M M M


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




CHAPTERm3
THEmCONCEPTUALmFRAMEWORKmFORmFINANCIALmREPORTINGm36
CHAPTER 3: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
M M M M M M M M M M M M 36
CHAPTER 3: THEORY OF ACCOUNTS REVIEWER ....................................... 37
M M M M M


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




CHAPTERm4
CASHm&mCASHmEQUIVALENTS..................................................54
CHAPTER 4: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
M M M M M M M M M M M M 54
CHAPTER 4: THEORY OF ACCOUNTS REVIEWER ....................................... 57
M M M M M


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




CHAPTERm5
RECEIVABLESm(PARTm1) ............................................................66
CHAPTER 5: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
M M M M M M M M M M M M 66
CHAPTER 5: THEORY OF ACCOUNTS REVIEWER ....................................... 69
M M M M M


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




CHAPTERm6
RECEIVABLESm(PARTm2) ............................................................75
CHAPTER 6: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)
M M M M M M M M M M M M 75
CHAPTER 6: THEORY OF ACCOUNTS REVIEWER ....................................... 78
M M M M M


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




CHAPTERm7

, CHAPTER 7: THEORY OF ACCOUNTS REVIEWER ....................................... 85
M M M M M


CHAPTER 7 - SUGGESTED ANSWERS TO THEORY OF ACCOUNTS QUESTIONS 92
M M M M M M M M M




CHAPTERm m m m m m m m m m m m m m m m m m m m m m m m m 8m
m INVENTORIES .........................................................................92
CHAPTER 8: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES) 92
M M M M M M M M M M M M


CHAPTER 8: THEORY OF ACCOUNTS REVIEWER........................................ 97
M M M M M


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




CHAPTERm9
INVESTMENTSm(PARTm1)........................................................109
CHAPTER 9: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES) 109
M M M M M M M M M M M M


CHAPTER 9: THEORY OF ACCOUNTS REVIEWER......................................112
M M M M M


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




CHAPTERm10
INVESTMENTSm(PARTm2)........................................................122
CHAPTER 10: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)122
M M M M M M M M M M M M


CHAPTER 10: THEORY OF ACCOUNTS REVIEWER...................................127
M M M M M


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




CHAPTERm11
INVESTMENTSm(PARTm3)........................................................135
CHAPTER 11: MULTIPLE CHOICE – COMPUTATIONAL (SET B) – (FOR CLASSROOM INSTRUCTION PURPOSES)135
M M M M M M M M M M M M


CHAPTER 11: THEORY OF ACCOUNTS REVIEWER...................................135
M M M M M


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




Chapterm1mOver
viewmofmAccounting
Chapterm1:mTheorymofmAccountsmReview
ermDefinitionmofmAccounting
1. Accountingmhasmbeenmgivenmvariousmdefinitions,mwhichmof mthemfollowingmismnotmonemof mthosemdefinitions
a. Accountingmismamservicemactivity.mItsmfunctionmismtomprovidemquantitativeminformation,mprimarilymfinancialm
inmnature,maboutmeconomicmentitiesmthatmismintendedmtombemusefulminmmakingmeconomicmdecisions.
b. Accountingmismthemartmofmrecording,mclassifying,mandmsummarizingminmamsignificantmmannermandminmtermsm
of mmoney,mtransactionsmandmeventsmwhichmare,minmpartmofmatmleast,mof mamfinancialmcharactermandminterpreti
ngmthemresultsmthereof.
c. Accountingmismamsystematicmprocessmof mobjectively mobtainingmandmevaluatingmevidencemregardingmassertio
nsmaboutmeconomicmactionsmandmeventsmtomascertainmthemdegreemofmcorrespondencembetweenmthesemassert
ionsm andmestablishedmcriteriamandmcommunicatingmthemresultsmtominterestedmusers.
d. Accountingmismthemprocessmofmidentifying,mmeasuring,mandmcommunicatingmeconomicminformationmtomperm
itminformedmjudgmentmandmdecisionsmby musersmof minformation.

2. Itm ism them firstm processm usedm inm accounting.m Itm refersm tom them identificationm of m eventsm asm tom whetherm the
ym aremrecognizedmormnotminmthemfinancialmstatements.
a.mIdentifying b.mMeasuringm c.mCommunicating d.mAuditing

3. Themfollowingmstatementsmcorrectly mrefermtomthemaccountingmprocess.
I. Measuringmismthemaccountingmprocessmofmanalyzingmbusinessmactivitiesmasmtomwhethermormnotmthey mwillmbe
mrecognizedm inmthembooks.

II. Recognitionmrefersmtomthemprocessmof mincludingmthemeffectsmofmanmeventminmthemtotalsmof mthemstatementmof m
financialmpositionmormthemstatementmof mprofitmormlossmandmothermcomprehensivemincomemthroughmmemom
entries.
III. Disclosuremofmeventsminmthemnotesmtomfinancialmstatementmwithoutmincludingminmthemtotalsmof mthemstatemen
tmofmfinancialmpositionmormstatementmofmprofitmormlossmandmothermcomprehensivemincomemismnotmanmapplica
tionmofmthemrecognitionmprinciple.
IV. Anmaccountablemeventmismanmeventmthatmhasmanmeffectmonmthemassets,mliabilitiesmormequity mofmanmentity mand
mitsmeffectmcanmbemmeasuredmreliably.

V. Sociologicalmandmpsychologicalmmattersmaremwithinmthemscopemof maccounting.