Test Bank - for Financial & Managerial Accounting 20th Edition by Jan Williams All Chapters 1-26 Complete Guide A+

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FinancialgandgManagerialgAccounting,g8eg(Wild)gC
hapterg2 AccountinggforgBusinessgTransactions

1) Businessgtransactionsgandgeventsgaregthegstartinggpointsgofgfinancialgstatements.

Answer:g TRUEgDiff
iculty:g1gEasy
Topic:g g AnalyzinggandgRecordinggProcess
LearninggObjective:g 02-
C1gExplaingthegstepsgingprocessinggtransactionsgandgthegrolegofgsourcegdocuments.
Bloom's:g g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

2) Preparationgofgagtrialgbalancegisgthegfirstgstepgingprocessinggagfinancialgtransaction.

Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g AnalyzinggandgRecordinggProcess
LearninggObjective:g 02-
C1gExplaingthegstepsgingprocessinggtransactionsgandgthegrolegofgsourcegdocuments.
Bloom's:g g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

3) Sourcegdocumentsgidentifygandgdescribegtransactionsgandgeventsgenteringgthegaccountin
ggprocess.

Answer:g TRUEgDiff
iculty:g1gEasy
Topic:g g AnalyzinggandgRecordinggProcess
LearninggObjective:g 02-
C1gExplaingthegstepsgingprocessinggtransactionsgandgthegrolegofgsourcegdocuments.
Bloom's:g g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking




1
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4) Itemsgsuchgasgsalesgreceipts,gbankgstatements,gchecks,gandgpurchasegordersgaregexamplesgofg
agbusiness'sgsourcegdocuments.

Answer:g TRUEgDiff
iculty:g1gEasy
Topic:g g AnalyzinggandgRecordinggProcess
LearninggObjective:g 02-
C1gExplaingthegstepsgingprocessinggtransactionsgandgthegrolegofgsourcegdocuments.
Bloom's:g g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

5) Angaccountgisgagrecordgofgincreasesgandgdecreasesgingagspecificgasset,gliability,gequity,grevenu
e,gorgexpensegitem.

Answer:g TRUEgDiff
iculty:g1gEasy
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

6) Agcustomer'sgpromisegtogpaygongcreditgisgclassifiedgasgangaccountgpayablegbygthegseller.

Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

7) Dividendsgaregsubtractedgongthegincomegstatementgasgagbusinessgexpense.

Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking




2
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NogreproductiongorgdistributiongwithoutgthegpriorgwrittengonsentgofgMcGraw-
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mynursytest.store

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8) Thegpurchasegofglandgandgbuildingsgwillggenerallygbegrecordedgingthegsamegledgergaccount.

Answer:g FALSEgDif
ficulty:g1gEasy
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

9) Unearnedgrevenuesgaregclassifiedgasgliabilities.

Answer:g TRUEgDiff
iculty:g1gEasy
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

10) Cashgdividendsgpaidgtogstockholdersgaregnotgreportedgongthegincomegstatement.

Answer:g TRUEgDiff
iculty:g1gEasy
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Remember
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

11) Whengagcompanygprovidesgservicesgforgwhichgcashgwillgnotgbegreceivedguntilgsomegfutur
egdate,gthegcompanygshouldgrecordgthegamountgbilledgasgaccountsgreceivable.

Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Understand
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking




3
Copyrightg©g2019gMcGraw-HillgEducation.gAllgrightsgreserved.
NogreproductiongorgdistributiongwithoutgthegpriorgwrittengonsentgofgMcGraw-
HillgEducation.
mynursytest.store

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12) Dividendsgalwaysgdecreasegequity.

Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Understand
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

13) Expensesgalwaysgdecreasegequity.

Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Understand
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

14) Revenuesgalwaysgincreasegequity.

Answer:g TRUEgDiff
iculty:g2gMedium
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Understand
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking

15) Thegissuancegofgcommongstockgalwaysgdecreasegequity.

Answer:g FALSEgDif
ficulty:g2gMedium
Topic:g g ThegAccountgandgItsgAnalysis
LearninggObjective:g 02-
C2gDescribegangaccountgandgitsgusegingrecordinggtransactions.gBloom's:g Understand
AACSB/Accessibility:g Communication/KeyboardgNavigationgAICP
A:g BBgIndustry;gFNgDecisiongMaking




4
Copyrightg©g2019gMcGraw-HillgEducation.gAllgrightsgreserved.
NogreproductiongorgdistributiongwithoutgthegpriorgwrittengonsentgofgMcGraw-
HillgEducation.
mynursytest.store