DOWNLOAD THE Test Bank for Financial Accounting 9th Edition Libby
g g g g g g g g g
Chapter 02 In
g g
vesting and Financing Decisions and the Accounting System
g g g g g g g
Trueg/gFalsegQuestions
1. Thegprimarygobjectivegofgfinancialgreportinggisgtogprovidegusefulginformationgtogexternalgdecision
makers.
g
True False
2. Ingordergforginformationgtogbegrelevant,gtheginformationgneedsgtogbegcomplete,gneutral,gandgfreegfrom
error.
g
True False
3. Ingordergforginformationgtogbegrelevant,gtheginformationgshouldghavegbothgpredictivegand/orgfeedback
value.
g
True False
4. Thegcontinuitygassumptiongstatesgthatgagbusinessgwillgcontinuegtogoperategintogthegforeseeablegfuture.
True False
5. Thegcurrentgassetsgsectiongofgagbalancegsheetgincludesgbothginventorygandgprepaidgexpenses.
True False
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g g g g g g g g g
6. Thegstockholders'gequitygsectiongofgagbalancegsheetgincludesgcapitalgcontributedgbygownersgandgalso
retainedgearnings.
g
True False
7. Undergthegmonetarygunitgassumption,gaccountingginformationgshouldgbegmeasuredgandgreportedgin
termsgofgthegnationalgmonetarygunit,gwithgangadjustmentgforgchangesgingpurchasinggpower.
g
True False
8. Assetsgaregreportedgongthegbalancegsheetgingthegordergofgliquidity.
True False
9. Manygvaluablegintangiblegassetsgsuchgasgtrademarksgandgcopyrightsgaregnotgreportedgongagcompany's
balancegsheet.
g
True False
10. Stockholders'gequitygreflectsgthegfinancinggprovidedgbygowners.
True False
11. Commongstockgandgadditional-paidgingcapitalgrepresentgthegfinancinggsourcesgfromgshareholders.
True False
12. Financialgreportinggfocusesgongreportinggthegimpactgofgtransactionsgongangentity'sgfinancialgposition.
True False
13. Unearnedgrevenuegisgreportedgongthegbalancegsheetgasgagliabilitygandgrepresentsgamountsgpaidgtogan
entitygingexchangegforgfuturegservicesgand/orggoods.
g
True False
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14. Agtransactiongmaygbegangexchangegofgassetsgorgservicesgbygonegbusinessgforgassets,gservices,gor
gpromisesgtogpaygfromgagdifferentgbusiness.
True False
15. Thegdualgeffectsgconceptgimpliesgthatgeverygtransactionghasgatgleastgtwogeffectsgongthegaccounting
gequation.
True False
16. Thegaccountinggequationgdoesgnotghavegtogbegingbalancegaftergthegrecordinggofgeachgtransaction.
True False
17. Additional-paidgingcapitalgisgreportedgongthegbalancegsheetgasgagcomponentgofgshareholders'gequity.
True False
18. Commongstockgandgadditional-
paidgingcapitalgaregbothgreportedgongthegbalancegsheetgasgcomponentsgofgshareholders'gequity.
True False
19. Agcompany'sgassetsgandgstockholders'gequitygbothgincreasegwhengthegcompanygsellsgadditionalgshares
gofgstockgingexchangegforgcash.
True False
20. Purchasinggsuppliesgforgcashgresultsgingangincreasegingtotalgassetsgforgthegpurchasinggcompany.
True False
21. Thegnormalgbalancegforgangassetgaccountgisgagdebitgandgthegnormalgbalancegforgagliabilitygaccountgisga
gcredit.
True False
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22. Thegrecordinggofgagjournalgentrygprecedesgthegpostinggtogtheggeneralgledger.
True False
23. Angassetgaccountgnormallyghasgagdebitgbalancegandgisgincreasedgbygdebitinggthegaccount.
True False
24. Liabilitygandgstockholders'gequitygaccountsgnormallyghavegcreditgbalancesgandgaregdecreasedgby
gdebitinggthegaccounts.
True False
25. Agjournalgentrygisgagwrittengexpressiongofgthegeffectsgofgagtransactiongongaccountsgandghasgequalgdebits
gandgcredits.
True False
26. ThegT-accountgisgangactualgaccountgingtheggeneralgledgergofgthegaccountinggrecords.
True False
27. ThegT-
accountgisgverygusefulgforgaccumulatinggthegeffectsgofgtransactionsgongaccountgbalancesgandgforgdeter
mininggindividualgaccountgbalances.
True False
28. Thegtrialgbalancegisgsimilargtogthegbalancegsheetgingthatgitgisgaglistinggofgassets,gliabilities,gand
gstockholders'gequitygandgisgprovidedgtogexternalgdecisiongmakers.
True False
29. Thegtrialgbalancegisgaglistinggofgaccountgbalancesgthatgaregfoundgingtheggeneralgledger.
True False
2-4
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Hillg Education.
mynursytest.store
g g g g g g g g g
Chapter 02 In
g g
vesting and Financing Decisions and the Accounting System
g g g g g g g
Trueg/gFalsegQuestions
1. Thegprimarygobjectivegofgfinancialgreportinggisgtogprovidegusefulginformationgtogexternalgdecision
makers.
g
True False
2. Ingordergforginformationgtogbegrelevant,gtheginformationgneedsgtogbegcomplete,gneutral,gandgfreegfrom
error.
g
True False
3. Ingordergforginformationgtogbegrelevant,gtheginformationgshouldghavegbothgpredictivegand/orgfeedback
value.
g
True False
4. Thegcontinuitygassumptiongstatesgthatgagbusinessgwillgcontinuegtogoperategintogthegforeseeablegfuture.
True False
5. Thegcurrentgassetsgsectiongofgagbalancegsheetgincludesgbothginventorygandgprepaidgexpenses.
True False
2-1
Copyrightg©g2017gMcGraw-HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGraw-
Hillg Education.
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,DOWNLOAD THE Test Bank for Financial Accounting 9th Edition Libby
g g g g g g g g g
6. Thegstockholders'gequitygsectiongofgagbalancegsheetgincludesgcapitalgcontributedgbygownersgandgalso
retainedgearnings.
g
True False
7. Undergthegmonetarygunitgassumption,gaccountingginformationgshouldgbegmeasuredgandgreportedgin
termsgofgthegnationalgmonetarygunit,gwithgangadjustmentgforgchangesgingpurchasinggpower.
g
True False
8. Assetsgaregreportedgongthegbalancegsheetgingthegordergofgliquidity.
True False
9. Manygvaluablegintangiblegassetsgsuchgasgtrademarksgandgcopyrightsgaregnotgreportedgongagcompany's
balancegsheet.
g
True False
10. Stockholders'gequitygreflectsgthegfinancinggprovidedgbygowners.
True False
11. Commongstockgandgadditional-paidgingcapitalgrepresentgthegfinancinggsourcesgfromgshareholders.
True False
12. Financialgreportinggfocusesgongreportinggthegimpactgofgtransactionsgongangentity'sgfinancialgposition.
True False
13. Unearnedgrevenuegisgreportedgongthegbalancegsheetgasgagliabilitygandgrepresentsgamountsgpaidgtogan
entitygingexchangegforgfuturegservicesgand/orggoods.
g
True False
2-2
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Hillg Education.
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,DOWNLOAD THE Test Bank for Financial Accounting 9th Edition Libby
g g g g g g g g g
14. Agtransactiongmaygbegangexchangegofgassetsgorgservicesgbygonegbusinessgforgassets,gservices,gor
gpromisesgtogpaygfromgagdifferentgbusiness.
True False
15. Thegdualgeffectsgconceptgimpliesgthatgeverygtransactionghasgatgleastgtwogeffectsgongthegaccounting
gequation.
True False
16. Thegaccountinggequationgdoesgnotghavegtogbegingbalancegaftergthegrecordinggofgeachgtransaction.
True False
17. Additional-paidgingcapitalgisgreportedgongthegbalancegsheetgasgagcomponentgofgshareholders'gequity.
True False
18. Commongstockgandgadditional-
paidgingcapitalgaregbothgreportedgongthegbalancegsheetgasgcomponentsgofgshareholders'gequity.
True False
19. Agcompany'sgassetsgandgstockholders'gequitygbothgincreasegwhengthegcompanygsellsgadditionalgshares
gofgstockgingexchangegforgcash.
True False
20. Purchasinggsuppliesgforgcashgresultsgingangincreasegingtotalgassetsgforgthegpurchasinggcompany.
True False
21. Thegnormalgbalancegforgangassetgaccountgisgagdebitgandgthegnormalgbalancegforgagliabilitygaccountgisga
gcredit.
True False
2-3
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Hillg Education.
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, DOWNLOAD THE Test Bank for Financial Accounting 9th Edition Libby
g g g g g g g g g
22. Thegrecordinggofgagjournalgentrygprecedesgthegpostinggtogtheggeneralgledger.
True False
23. Angassetgaccountgnormallyghasgagdebitgbalancegandgisgincreasedgbygdebitinggthegaccount.
True False
24. Liabilitygandgstockholders'gequitygaccountsgnormallyghavegcreditgbalancesgandgaregdecreasedgby
gdebitinggthegaccounts.
True False
25. Agjournalgentrygisgagwrittengexpressiongofgthegeffectsgofgagtransactiongongaccountsgandghasgequalgdebits
gandgcredits.
True False
26. ThegT-accountgisgangactualgaccountgingtheggeneralgledgergofgthegaccountinggrecords.
True False
27. ThegT-
accountgisgverygusefulgforgaccumulatinggthegeffectsgofgtransactionsgongaccountgbalancesgandgforgdeter
mininggindividualgaccountgbalances.
True False
28. Thegtrialgbalancegisgsimilargtogthegbalancegsheetgingthatgitgisgaglistinggofgassets,gliabilities,gand
gstockholders'gequitygandgisgprovidedgtogexternalgdecisiongmakers.
True False
29. Thegtrialgbalancegisgaglistinggofgaccountgbalancesgthatgaregfoundgingtheggeneralgledger.
True False
2-4
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Hillg Education.
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