DOWNLOADgTHEgTestgBankgforgFinancialgandgManagerialgAccountingg6thgEdit
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Chapterg02
g AccountinggforgBusinessgTransaction
s
Trueg/gFalsegQuestions
1. Thegfirstgstepgingthegprocessinggofgagtransactiongisgtoganalyzegthegtransactiongandgso
urcegdocuments.
True False
2. Preparationgofgagtrialgbalancegisgthegfirstgstepgingprocessinggagfinancialgtransaction.
True False
3. Sourcegdocumentsgprovidegevidencegofgbusinessgtransactionsgandgaregthegbasisgforgaccount
inggentries.
True False
4. Itemsgsuchgasgsalesgtickets,gbankgstatements,gchecks,gandgpurchasegordersgaregexamplesg
ofgagbusiness'sgsourcegdocuments.
True False
5. Angaccountgisgagrecordgofgincreasesgandgdecreasesgingagspecificgasset,gliability,gequity,grevenu
e,gorgexpensegitem.
True False
6. Agcustomer'sgpromisegtogpaygongcreditgisgclassifiedgasgangaccountgpayablegbygthegs
eller.gTrue False
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7. Dividendsgpaidgtogthegstockholdersgaregagbusinessgexpense.
True False
8. Thegpurchasegofglandgandgbuildingsgwillggenerallygbegrecordedgingthegsamegledgergaccount.
True False
9. Unearnedgrevenuesgaregclassifiedgasgliabilities.
True False
10. Cashgpaidgtogstockholdersgbygthegbusinessgofgagcorporationgandgusedgforgpersonalgexpenses,gsh
ouldgbegtreatedgasgangexpensegofgthegbusiness.
True False
11. Whengagcompanygprovidesgservicesgforgwhichgcashgwillgnotgbegreceivedguntilgsomegfuturegdate
,gthegcompanygshouldgrecordgthegamountgchargedgasgaccountsgreceivable.
True False
12. Agcompany'sgchartgofgaccountsgisgaglistgofgallgthegaccountsgusedgandgincludesgangidentific
ationgnumbergassignedgtogeachgaccount.
True False
13. Angaccount'sgbalancegisgthegdifferencegbetweengthegtotalgdebitsgandgtotalgcreditsgforgthegacc
ount,gincludingganygbeginninggbalance.
True False
14. Thegrightgsidegofgangaccountgisgcalledgthegdebitgsi
de.gTrue False
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15. Ingagdouble-
entrygaccountinggsystem,gthegtotalgdollargamountgdebitedgmustgalwaysgequalgthegtotalgdollarga
mountgcredited.
True False
16. Increasesgingliabilitygaccountsgaregrecordedgasgdebits.
True False
17. Debitsgincreasegassetgandgexpensegaccounts.
True False
18. Creditsgalwaysgincreasegaccountgbalance
s.gTrue False
19. Creditinggangexpensegaccountgdecreasesgit.
True False
20. Agrevenuegaccountgnormallyghasgagdebitgbalance.
True False
21. Assetgaccountsgaregnormallygdecreasedgbygdebits.
True False
22. Debitgmeansgincreasegandgcreditgmeansgdecreasegforgallgaccoun
ts.gTrue False
23. Assetgaccountsgnormallyghavegdebitgbalancesgandgrevenuegaccountsgnormallyghavegcreditgbalances.
True False
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24. Agdividendgnormallyghasgagdebitgbalance.
True False
25. Agdebitgentrygisgalwaysgangincreasegingthegaccount.
True False
26. Agtransactiongthatgcreditsgangassetgaccountgandgcreditsgagliabilitygaccountgmustgalsogaffectgon
egorgmoregothergaccounts.
True False
27. Agtransactiongthatgdecreasesgagliabilitygandgincreasesgangassetgmustgalsogaffectgonegorgmoreg
othergaccounts.
True False
28. Ifginsurancegcoveragegforgthegnextgtwogyearsgisgpaidgforgingadvance,gthegamountgofgthegpaym
entgisgdebitedgtogangassetgaccountgcalledgPrepaidgInsurance.
True False
29. ThegpurchasegofgsuppliesgongcreditgshouldgbegrecordedgwithgagdebitgtogSuppliesgandgagcre
ditgtogAccountsgPayable.
True False
30. Ifgagcompanygpurchasesgequipmentgpayinggcash,gthegjournalgentrygtogrecordgthisgtransaction
gwillgincludegagdebitgtogCash.
True False
31. Ifgagcompanygprovidesgservicesgtogagcustomergongcredit,gthegcompanygprovidinggthegservicegsh
ouldgcreditgAccountsgReceivable.
True False
2-4
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
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iongWild
Chapterg02
g AccountinggforgBusinessgTransaction
s
Trueg/gFalsegQuestions
1. Thegfirstgstepgingthegprocessinggofgagtransactiongisgtoganalyzegthegtransactiongandgso
urcegdocuments.
True False
2. Preparationgofgagtrialgbalancegisgthegfirstgstepgingprocessinggagfinancialgtransaction.
True False
3. Sourcegdocumentsgprovidegevidencegofgbusinessgtransactionsgandgaregthegbasisgforgaccount
inggentries.
True False
4. Itemsgsuchgasgsalesgtickets,gbankgstatements,gchecks,gandgpurchasegordersgaregexamplesg
ofgagbusiness'sgsourcegdocuments.
True False
5. Angaccountgisgagrecordgofgincreasesgandgdecreasesgingagspecificgasset,gliability,gequity,grevenu
e,gorgexpensegitem.
True False
6. Agcustomer'sgpromisegtogpaygongcreditgisgclassifiedgasgangaccountgpayablegbygthegs
eller.gTrue False
2-1
Copyrightg©g2016gMcGraw-
HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
mynursytest.store
,DOWNLOADgTHEgTestgBankgforgFinancialgandgManagerialgAccountingg6thgEdit
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7. Dividendsgpaidgtogthegstockholdersgaregagbusinessgexpense.
True False
8. Thegpurchasegofglandgandgbuildingsgwillggenerallygbegrecordedgingthegsamegledgergaccount.
True False
9. Unearnedgrevenuesgaregclassifiedgasgliabilities.
True False
10. Cashgpaidgtogstockholdersgbygthegbusinessgofgagcorporationgandgusedgforgpersonalgexpenses,gsh
ouldgbegtreatedgasgangexpensegofgthegbusiness.
True False
11. Whengagcompanygprovidesgservicesgforgwhichgcashgwillgnotgbegreceivedguntilgsomegfuturegdate
,gthegcompanygshouldgrecordgthegamountgchargedgasgaccountsgreceivable.
True False
12. Agcompany'sgchartgofgaccountsgisgaglistgofgallgthegaccountsgusedgandgincludesgangidentific
ationgnumbergassignedgtogeachgaccount.
True False
13. Angaccount'sgbalancegisgthegdifferencegbetweengthegtotalgdebitsgandgtotalgcreditsgforgthegacc
ount,gincludingganygbeginninggbalance.
True False
14. Thegrightgsidegofgangaccountgisgcalledgthegdebitgsi
de.gTrue False
2-2
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
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15. Ingagdouble-
entrygaccountinggsystem,gthegtotalgdollargamountgdebitedgmustgalwaysgequalgthegtotalgdollarga
mountgcredited.
True False
16. Increasesgingliabilitygaccountsgaregrecordedgasgdebits.
True False
17. Debitsgincreasegassetgandgexpensegaccounts.
True False
18. Creditsgalwaysgincreasegaccountgbalance
s.gTrue False
19. Creditinggangexpensegaccountgdecreasesgit.
True False
20. Agrevenuegaccountgnormallyghasgagdebitgbalance.
True False
21. Assetgaccountsgaregnormallygdecreasedgbygdebits.
True False
22. Debitgmeansgincreasegandgcreditgmeansgdecreasegforgallgaccoun
ts.gTrue False
23. Assetgaccountsgnormallyghavegdebitgbalancesgandgrevenuegaccountsgnormallyghavegcreditgbalances.
True False
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24. Agdividendgnormallyghasgagdebitgbalance.
True False
25. Agdebitgentrygisgalwaysgangincreasegingthegaccount.
True False
26. Agtransactiongthatgcreditsgangassetgaccountgandgcreditsgagliabilitygaccountgmustgalsogaffectgon
egorgmoregothergaccounts.
True False
27. Agtransactiongthatgdecreasesgagliabilitygandgincreasesgangassetgmustgalsogaffectgonegorgmoreg
othergaccounts.
True False
28. Ifginsurancegcoveragegforgthegnextgtwogyearsgisgpaidgforgingadvance,gthegamountgofgthegpaym
entgisgdebitedgtogangassetgaccountgcalledgPrepaidgInsurance.
True False
29. ThegpurchasegofgsuppliesgongcreditgshouldgbegrecordedgwithgagdebitgtogSuppliesgandgagcre
ditgtogAccountsgPayable.
True False
30. Ifgagcompanygpurchasesgequipmentgpayinggcash,gthegjournalgentrygtogrecordgthisgtransaction
gwillgincludegagdebitgtogCash.
True False
31. Ifgagcompanygprovidesgservicesgtogagcustomergongcredit,gthegcompanygprovidinggthegservicegsh
ouldgcreditgAccountsgReceivable.
True False
2-4
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
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