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m m m m m m m m m
Financialm Accounting,m 5em (Spiceland)
Chapterm2 ThemAccountingmCycle:mDuringmthemPeriod
1) Externalmtransactionsmaremtransactionsmthemcompanymconductsmwithmamseparatemeconomicmentit
y,msuchmasmsellingmproductsmtomamcustomer,mpurchasingm suppliesmfromma mvendor,mpayingmsalariesm
tomanmemployee,mand mborrowingmmoneymfrommambank.
2) Internalmtransactionsmaremeventsmthat maffect mthemfinancialmpositionmof mthemcompanymbut mdom
not mincludemanmexchangemwithmamseparatemeconomicmentity.
3) A mlist mof mallmaccount mnamesmused mtomrecord mtransactionsmof mamcompanymismreferred mtomasma
mT-maccount.
4) A msourcemdocument mprovidesminformationmrelated mtomexternalmtransactions.
5) Aftermrecordingmeachmtransaction,mtotalmassetsmmust mequalmtotalmliabilitiesmplusmstockholde
rs'mequity.
6) If mamtransactionmcausesmtotalmassetsmof mthemcompanymtomincreasembym$2,000,mthenmliabilitiesmp
lusmstockholders'mequitymalsomincreasesmbym$2,000.
7) If mamtransactionmcausesmtotalmassetsmof mthemcompanymtomincreasembym$5,000mand mtotalmliabilities
mtomincreasembym$3,000,mthenmstockholders' mequitymincreasesmbym$8,000.
8) Borrowingmcashmfrommthembankmcausesmassetsmtomincreasemand mliabilitiesmtomincrease.
9) Purchasingmequipment musingmcashmcausesmassetsmtomincrease.
10) Providingmservicesmtomcustomersmformcashmcausesmstockholders'mequitymtomincrease.
11) Payingmemployees'msalariesmformthemcurrent mmonthmcausesmnomchangemtomstockholders'mequity.
12) Payingmdividendsmtomitsmstockholdersmcausesmamcompany'smstockholders'mequitymtomdecrease.
13) Sellingmcommonmstockmformcashmcausesmassetsmtomincreasemand mstockholders'mequitymtomdecreas
e.
14) Purchasingmofficemsuppliesmonmaccount mcausesmassetsmtomincreasemand mliabilitiesmtomincrease.
15) Providingmservicesmtomcustomersmonmaccount mcausesmassetsmtomincreasemand mstockholders'mequi
tymtomincrease.
16) Receivingmcashminmadvancemfrommamcustomermformservicesmtombemprovided minmthemfuturemcau
sesmassetsmtomincreasemand mstockholders'mequitymtomincrease.
17) Payingmformonemyearmof mrent minmadvancemcausesmonemasset mtomincreasemand manothermasset
mtomdecrease,msomtheremismnomeffect monmthemaccountingmequation.
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m m m m m m m m m
18) Purchasingmsuppliesmonmaccount mincreasesmthembalancemof mthemAccountsmReceivablemaccount.
19) Amountsmowed mfrommcustomersmaremrecorded minmthemAccountsmReceivablemaccount.
20) Themtwomcomponentsmof mstockholders'mequitymaremDebitsmand mCredits.
21) Revenuesmhavemthemeffect mof mincreasingmretained mearnings.
22) Expensesmhavemthemeffect mof mdecreasingmretained mearnings.
23) ReceivingmcashminmadvancemfrommcustomersmincreasesmthemServicemRevenuemaccount.
24) Deferred mRevenuemismamliabilitymaccount.
25) Liabilitymaccountsmincreasemwithmamdebit mand mdecreasemwithmamcredit.
26) Liabilitymaccountsmincreasemwithmamcredit mand mdecreasemwithmamdebit.
27) CommonmStockmincreasesmwithmamcredit mand mdecreasesmwithmamdebit.
28) Revenuemaccountsmincreasemwithmamdebit mand mdecreasemwithmamcredit.
29) Expensemaccountsmincreasemwithmamdebit mand mdecreasemwithmamcredit.
30) ThemDividendsmaccount mincreasesmwithmamcredit mand mdecreasesmwithmamdebit.
31) A mdebit mtomanmaccount mbalancemalwaysmresultsminmthembalancemincreasing.
32) A mcredit mtomanmaccount mbalancemalwaysmresultsminmthembalancemdecreasing.
33) A mjournalmprovidesmamchronologicalmrecord mof mallmtransactionsmaffectingmamfirm.
34) Formeachmtransaction,mtheremmust mbemat mleast monemdebit mamount mand monemcredit mamount.
35) Formeachmtransaction,mthemtotalmdebit mamountsmmust mequalmthemtotalmcredit mamounts.
36) Sellingmcommonmstockmformcashmismrecorded mwithmamdebit mtomcommonmstock.
37) Borrowingmcashmfrommthembankmismrecorded mwithmamdebit mtomcash.
38) Purchasingmofficemsuppliesmismrecorded mwithmamcredit mtomofficemsupplies.
39) Payingmemployees'msalariesmformthemcurrent mperiod mismrecorded mwithmamdebit mtomSalari
esmExpense.
40) Providingmservicesmtomcustomersmismrecorded mwithmamdebit mtomServicemRevenue.
2
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
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m m m m m m m m m
41) Themgeneralmledgermincludesmallmaccountsmused mtomrecord mthemcompany'smtransactions.
42) Themprocessmof mtransferringmthemdebit mand mcredit minformationmfrommthemjournalmtomindivid
ualmaccountsminmthemgeneralmledgermismcalled mjournalizing.
43) Aftermpostingmtransactionsmtomthemgeneralmledgermaccounts,mthemsummof mthemaccountsmwithmde
bit mbalancesmshould mequalmthemsummof mthemaccountsmwithmcredit mbalances.
44) A mtrialmbalancemismamlist mof mallmaccountsmand mtheirmbalancesmat mamparticularmdate,mshowingmt
hat massetsmequalmliabilities.
45) If mtotalmdebitsmequalmtotalmcreditsminmthemtrialmbalance,mthenmallmbalancesmaremcorrect.
46) Whichmof mthemfollowingmismnot mpart mof mmeasuringmexternalmtransactions?
A) Usingmsourcemdocumentsmtomanalyzemaccountsmaffected.
B) Recordingmtransactions.
C) Makingmpaymentsmonmallmamountsmowed.
D) Analyzingmtransactionsmformtheirmeffect monmthemaccountingmequation.
47) Externalmeventsmincludemallmof mthemfollowingmexcept:
A) Payingmrent.
B) Purchasingmequipment.
C) Usingmofficemsupplies.
D) Collectingmanmaccount mreceivable.
48) Themfullmset mof mproceduresmused mtomaccomplishmthemmeasurement/communicationmprocessm
of mfinancialmaccountingmismreferred mtomasmthe:
A) Trialmbalance.
B) Accountingmcycle.
C) Chart mof maccounts.
D) Generalmledger.
49) Whichmstepminmthemprocessmof mmeasuringmexternalmtransactionsminvolvesmassessingmthemequali
tymof mtotalmdebitsmand mtotalmcreditsmformthemperiod?
A) Usemsourcemdocumentsmtomdeterminemaccountsmaffected mbymthemtransaction.
B) Preparemamtrialmbalance.
C) Analyzemthemimpact mof mthemtransactionmonmthemaccountingmequation.
D) Post mthemtransactionmtomthemT-account minmthemgeneralmledger.
50) Whichmstepminmthemprocessmof mmeasuringmexternalmtransactionsminvolvesmdeterminingmthemeffe
ct monmassets,mliabilities,mand mstockholders'mequity?
A) Usemsourcemdocumentsmtomdeterminemaccountsmaffected mbymthemtransaction.
B) Preparemamtrialmbalance.
C) Analyzemthemimpact mof mthemtransactionmonmthemaccountingmequation.
D) Post mthemtransactionmtomthemT-account minmthemgeneralmledger.
3
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
mynursytest.store
m m m m m m m m m
Financialm Accounting,m 5em (Spiceland)
Chapterm2 ThemAccountingmCycle:mDuringmthemPeriod
1) Externalmtransactionsmaremtransactionsmthemcompanymconductsmwithmamseparatemeconomicmentit
y,msuchmasmsellingmproductsmtomamcustomer,mpurchasingm suppliesmfromma mvendor,mpayingmsalariesm
tomanmemployee,mand mborrowingmmoneymfrommambank.
2) Internalmtransactionsmaremeventsmthat maffect mthemfinancialmpositionmof mthemcompanymbut mdom
not mincludemanmexchangemwithmamseparatemeconomicmentity.
3) A mlist mof mallmaccount mnamesmused mtomrecord mtransactionsmof mamcompanymismreferred mtomasma
mT-maccount.
4) A msourcemdocument mprovidesminformationmrelated mtomexternalmtransactions.
5) Aftermrecordingmeachmtransaction,mtotalmassetsmmust mequalmtotalmliabilitiesmplusmstockholde
rs'mequity.
6) If mamtransactionmcausesmtotalmassetsmof mthemcompanymtomincreasembym$2,000,mthenmliabilitiesmp
lusmstockholders'mequitymalsomincreasesmbym$2,000.
7) If mamtransactionmcausesmtotalmassetsmof mthemcompanymtomincreasembym$5,000mand mtotalmliabilities
mtomincreasembym$3,000,mthenmstockholders' mequitymincreasesmbym$8,000.
8) Borrowingmcashmfrommthembankmcausesmassetsmtomincreasemand mliabilitiesmtomincrease.
9) Purchasingmequipment musingmcashmcausesmassetsmtomincrease.
10) Providingmservicesmtomcustomersmformcashmcausesmstockholders'mequitymtomincrease.
11) Payingmemployees'msalariesmformthemcurrent mmonthmcausesmnomchangemtomstockholders'mequity.
12) Payingmdividendsmtomitsmstockholdersmcausesmamcompany'smstockholders'mequitymtomdecrease.
13) Sellingmcommonmstockmformcashmcausesmassetsmtomincreasemand mstockholders'mequitymtomdecreas
e.
14) Purchasingmofficemsuppliesmonmaccount mcausesmassetsmtomincreasemand mliabilitiesmtomincrease.
15) Providingmservicesmtomcustomersmonmaccount mcausesmassetsmtomincreasemand mstockholders'mequi
tymtomincrease.
16) Receivingmcashminmadvancemfrommamcustomermformservicesmtombemprovided minmthemfuturemcau
sesmassetsmtomincreasemand mstockholders'mequitymtomincrease.
17) Payingmformonemyearmof mrent minmadvancemcausesmonemasset mtomincreasemand manothermasset
mtomdecrease,msomtheremismnomeffect monmthemaccountingmequation.
1
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
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m m m m m m m m m
18) Purchasingmsuppliesmonmaccount mincreasesmthembalancemof mthemAccountsmReceivablemaccount.
19) Amountsmowed mfrommcustomersmaremrecorded minmthemAccountsmReceivablemaccount.
20) Themtwomcomponentsmof mstockholders'mequitymaremDebitsmand mCredits.
21) Revenuesmhavemthemeffect mof mincreasingmretained mearnings.
22) Expensesmhavemthemeffect mof mdecreasingmretained mearnings.
23) ReceivingmcashminmadvancemfrommcustomersmincreasesmthemServicemRevenuemaccount.
24) Deferred mRevenuemismamliabilitymaccount.
25) Liabilitymaccountsmincreasemwithmamdebit mand mdecreasemwithmamcredit.
26) Liabilitymaccountsmincreasemwithmamcredit mand mdecreasemwithmamdebit.
27) CommonmStockmincreasesmwithmamcredit mand mdecreasesmwithmamdebit.
28) Revenuemaccountsmincreasemwithmamdebit mand mdecreasemwithmamcredit.
29) Expensemaccountsmincreasemwithmamdebit mand mdecreasemwithmamcredit.
30) ThemDividendsmaccount mincreasesmwithmamcredit mand mdecreasesmwithmamdebit.
31) A mdebit mtomanmaccount mbalancemalwaysmresultsminmthembalancemincreasing.
32) A mcredit mtomanmaccount mbalancemalwaysmresultsminmthembalancemdecreasing.
33) A mjournalmprovidesmamchronologicalmrecord mof mallmtransactionsmaffectingmamfirm.
34) Formeachmtransaction,mtheremmust mbemat mleast monemdebit mamount mand monemcredit mamount.
35) Formeachmtransaction,mthemtotalmdebit mamountsmmust mequalmthemtotalmcredit mamounts.
36) Sellingmcommonmstockmformcashmismrecorded mwithmamdebit mtomcommonmstock.
37) Borrowingmcashmfrommthembankmismrecorded mwithmamdebit mtomcash.
38) Purchasingmofficemsuppliesmismrecorded mwithmamcredit mtomofficemsupplies.
39) Payingmemployees'msalariesmformthemcurrent mperiod mismrecorded mwithmamdebit mtomSalari
esmExpense.
40) Providingmservicesmtomcustomersmismrecorded mwithmamdebit mtomServicemRevenue.
2
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
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m m m m m m m m m
41) Themgeneralmledgermincludesmallmaccountsmused mtomrecord mthemcompany'smtransactions.
42) Themprocessmof mtransferringmthemdebit mand mcredit minformationmfrommthemjournalmtomindivid
ualmaccountsminmthemgeneralmledgermismcalled mjournalizing.
43) Aftermpostingmtransactionsmtomthemgeneralmledgermaccounts,mthemsummof mthemaccountsmwithmde
bit mbalancesmshould mequalmthemsummof mthemaccountsmwithmcredit mbalances.
44) A mtrialmbalancemismamlist mof mallmaccountsmand mtheirmbalancesmat mamparticularmdate,mshowingmt
hat massetsmequalmliabilities.
45) If mtotalmdebitsmequalmtotalmcreditsminmthemtrialmbalance,mthenmallmbalancesmaremcorrect.
46) Whichmof mthemfollowingmismnot mpart mof mmeasuringmexternalmtransactions?
A) Usingmsourcemdocumentsmtomanalyzemaccountsmaffected.
B) Recordingmtransactions.
C) Makingmpaymentsmonmallmamountsmowed.
D) Analyzingmtransactionsmformtheirmeffect monmthemaccountingmequation.
47) Externalmeventsmincludemallmof mthemfollowingmexcept:
A) Payingmrent.
B) Purchasingmequipment.
C) Usingmofficemsupplies.
D) Collectingmanmaccount mreceivable.
48) Themfullmset mof mproceduresmused mtomaccomplishmthemmeasurement/communicationmprocessm
of mfinancialmaccountingmismreferred mtomasmthe:
A) Trialmbalance.
B) Accountingmcycle.
C) Chart mof maccounts.
D) Generalmledger.
49) Whichmstepminmthemprocessmof mmeasuringmexternalmtransactionsminvolvesmassessingmthemequali
tymof mtotalmdebitsmand mtotalmcreditsmformthemperiod?
A) Usemsourcemdocumentsmtomdeterminemaccountsmaffected mbymthemtransaction.
B) Preparemamtrialmbalance.
C) Analyzemthemimpact mof mthemtransactionmonmthemaccountingmequation.
D) Post mthemtransactionmtomthemT-account minmthemgeneralmledger.
50) Whichmstepminmthemprocessmof mmeasuringmexternalmtransactionsminvolvesmdeterminingmthemeffe
ct monmassets,mliabilities,mand mstockholders'mequity?
A) Usemsourcemdocumentsmtomdeterminemaccountsmaffected mbymthemtransaction.
B) Preparemamtrialmbalance.
C) Analyzemthemimpact mof mthemtransactionmonmthemaccountingmequation.
D) Post mthemtransactionmtomthemT-account minmthemgeneralmledger.
3
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
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