Test Bank for Survey of Accounting, 3rd Edition by Paul D. Kimmel. Latest Edition 2025

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,Test Bank for Survey of Accounting, 3rd Edition by Paul D.
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Kimmel, Jerry J. Weygandt, Jill E. Mitchell
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Survey of Accounting, 3e (Kimmel)ii ii ii ii


Appendix D Double-Entry Accounting System ii ii ii




1) A new account is opened for each transaction entered into by a business firm.
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Answer: FALSE
ii i i


Diff: 1 ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None i i ii ii ii ii ii


Minutes: 1
ii i i




2) The recording process becomes more efficient and informative if all transactions are recorded
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in one account.
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Answer: FALSE i i


Diff: 1
ii ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None i i ii ii ii ii ii


Minutes: 1
ii i i




3) An account consists of two parts: (1) a left or debit side and (2) a right or credit side.
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Answer: FALSE
ii i i


Diff: 1 ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None i i ii ii ii ii ii


Minutes: 1
ii i i




4) For a T-account, an account balance is the difference in total dollars between total debit
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amounts and total credit amounts.
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Answer: TRUE i i


Diff: 1
ii ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None i i ii ii ii ii ii


Minutes: 1
ii i i




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,5) An account is often referred to as a T-account because of the way it is constructed.
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Answer: TRUE
ii i i


Diff: 1 ii


LO: 1i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting
ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




6) A debit to an account always indicates an increase in that account.
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Answer: FALSE
ii i i


Diff: 1 ii


LO: 1i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting
ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




7) If a revenue account is credited, the revenue account is increased.
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Answer: TRUE
ii i i


Diff: 1 ii


LO: 1i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting
ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




8) The normal balance of all accounts is a debit.
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Answer: FALSE
ii i i


Diff: 1 ii


LO: 1i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting
ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




9) Debit and credit can be interpreted to mean "bad" and "good", respectively.
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Answer: FALSE
ii i i


Diff: 1 ii


LO: 1i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting
ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




3

, 10) A credit means that an account has been increased.
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Answer: FALSE
ii i i


Diff: 1 ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




11) A decrease in a liability account is recorded by a debit.
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Answer: TRUE
ii i i


Diff: 1 ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




12) An increase in an asset is recorded by a debit.
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Answer: TRUE
ii i i


Diff: 1 ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




13) The double-entry system of accounting refers to the placement of a double line at the end of
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a column of figures.
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Answer: FALSE i i


Diff: 1
ii ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




14) A credit balance in a liability account indicates that an error in recording has occurred.
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Answer: FALSE
ii i i


Diff: 1 ii


LO: 1 i i i i


Bloom: K i i i i


AACSB / IMA: None / Reporting ii ii i i i i ii ii


AICPA: BB: None; FC: Reporting; PC: None
i i ii ii ii ii ii


Minutes: 1
ii i i




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