TEST BANK FOR Survey of Accounting 3rd Edition by Paul D. Kimmel , ISBN: 9781119895688 Chapter 1-19 |All Chapters Verified| Guide A+

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

1) A new account is opened for each transaction entered into by a business firm.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

2) The recording process becomes more efficient and informative if all transactions are recorded
in one account.
Answer: FALSE
PR
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1
O

3) An account consists of two parts: (1) a left or debit side and (2) a right or credit side.
Answer: FALSE
FD
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
O
Minutes: 1

4) For a T-account, an account balance is the difference in total dollars between total debit
amounts and total credit amounts.
C
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1




1

,5) An account is often referred to as a T-account because of the way it is constructed.
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

6) A debit to an account always indicates an increase in that account.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
PR
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

7) If a revenue account is credited, the revenue account is increased.
Answer: TRUE
Diff: 1
O
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
FD
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

8) The normal balance of all accounts is a debit.
Answer: FALSE
O
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
C
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

9) Debit and credit can be interpreted to mean "bad" and "good", respectively.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1




2

,10) A credit means that an account has been increased.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

11) A decrease in a liability account is recorded by a debit.
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
PR
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

12) An increase in an asset is recorded by a debit.
Answer: TRUE
Diff: 1
O
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
FD
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

13) The double-entry system of accounting refers to the placement of a double line at the end of
a column of figures.
O
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
C
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

14) A credit balance in a liability account indicates that an error in recording has occurred.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1



3

, 15) The normal balance of an asset is a credit.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

16) The normal balance of the dividend account is a credit.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
PR
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

17) Assets are decreased with a credit.
Answer: TRUE
Diff: 1
O
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
FD
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

18) A debit means that an account has been decreased.
Answer: FALSE
O
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
C
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

19) Liabilities are increased with debits and decreased with credits.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1




4