Test Bank for Financial Accounting, Eleventh Edition

, CHAPTER 2
THE RECORDING PROCESS
SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
True-False Statements
sg
1. 1 K 9. 1 K 17. 2 K 25. 3 K 33. 2 K
sg
2. 1 K 10. 1 K 18. 2 K 26. 3 C, K 34. 3 K
sg
3. 1 K 11. 1 K 19. 2 K 27. 3 K 35. 3 C
sg
4. 1 K 12. 1 K 20. 2 K 28. 3 K 36. 4 K
sg
5. 1 K 13. 1 K 21. 2 K 29. 3 K 37. 4 K
6. 1 K 14. 2 K 22. 2 K 30. 4 K
7. 1 K 15. 2 K 23. 2 K sg
31. 1 K
sg
8. 1 K 16. 2 K 24. 3 K 32. 1 K
Multiple Choice Questions
38. 1 K 63. 1 C 88. 2 K 113. 3 K 138. 1 K
sg
39. 1 K 64. 1 K 89. 2 K 114. 3 C 139. 1 K
st
40. 1 K 65. 1 K 90. 2 K 115. 3 K 140. 1 K
sg
41. 1 C 66. 1 K 91. 2 C 116. 3 K 141. 2 K
st
42. 1 K 67. 1 K 92. 2 K 117. 3 AP 142. 2 K
sg
43. 1 K 68. 1 K 93. 2 K 118. 3 K 143. 2 AP
st
44. 1 K 69. 2 AP 94. 2 K 119. 3 K 144. 2 AP
sg
45. 1 K 70. 2 AP 95. 2 K 120. 3 K 145. 2 AN
sg
46. 1 K 71. 2 AP 96. 2 K 121. 3 K 146. 3 K
sg
47. 1 K 72. 2 AP 97. 2 K 122. 3 K 147. 3 K
st
48. 1 K 73. 1 AP 98. 2 K 123. 3 K 148. 4 K
sg
49. 1 K 74. 1 AP 99. 2 K 124. 3 K 149. 4 C
st
50. 1 K 75. 1 AN 100. 2 K 125. 3 K 150. 5 K
sg
51. 1 K 76. 1 AP 101. 2 K 126. 3 K 151. 5 K
52. 1 K 77. 4 AP 102. 2 K 127. 3 K 152. 5 K
53. 1 K 78. 4 AP 103. 2 C 128. 3 K 153. 5 K
54. 1 C 79. 1 AP 104. 2 K 129. 3 K 154. 5 K
55. 1 C 80. 1 AP 105. 2 K 130. 4 K 155. 5 K
56. 1 K 81. 1 AP 106. 2 K 131. 4 C
57. 1 K 82. 1 AP 107. 2 K 132. 4 K
58. 1 K 83. 1 C 108. 2 K 133. 4 C
59. 1 K 84. 2 AP 109. 2 AN 134. 4 K
60. 1 K 85. 1 AP 110. 3 K 135. 4 K
61. 1 K 86. 2 K 111. 3 K 136. 4 C
62. 1 C 87. 2 K 112. 3 K 137. 1 K
Brief Exercises
156. 1 AP 159. 2 AP 161. 1 K 163. 3 AP 165. 4 AP
157. 1 C 160. 2 AP 162. 2 AP 164. 3 AP 166. 4 AP
158. 1 K
sg
This question also appears in the Study Guide.

,2-2 Test Bank for Financial Accounting, Eleventh Edition
st
This question also appears in a self-test at the student companion website.
SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY
Exercises
167. 3 AP 172. 1 C 177. 2 C 182. 3,4 AP 187. 4 AP
168. 1 C 173. 1 C 178. 2 AP 183. 4 AN 188. 4 AP
169. 1 C 174. 1 C 179. 2 C 184. 3 AP 189. 4 AP
170. 1 C 175. 1 C 180. 2 AP 185. 4 AN 190. 4 AN
171. 1 C 176. 2 AP 181. 3 AP 186. 4 AN
Completion Statements
191. 1 K 193. 1 K 195. 2 K 197. 2 K 199. 3 K
192. 1 K 194. 1 K 196. 2 K 198 2 K 200. 4 K
Matching
201. 1-4 K
Short-Answer Essay
202. 1 C 205. 4 AN 208. 2 C 211. 2,3 S
203. 1 C 206. 2 S 209. 3 C 212. 1 E
204. 1 S 207. 2 C 210. 3 S 213. 1 S


SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPE
Item Type Item Type Item Type Item Type Item Type Item Type Item Type
Learning Objective 1
1. TF 13. TF 47. MC 59. MC 75. MC 156. BE 191. C
2. TF 31. TF 48. MC 60. MC 76. MC 157. BE 192. C
3. TF 32. TF 49. MC 61. MC 79. MC 158. BE 193. C
4. TF 38. MC 50. MC 62. MC 80. MC 161. BE 194. C
5. TF 39. MC 51. MC 63. MC 81. MC 168. Ex 201. MA
6. TF 40. MC 52. MC 64. MC 82. MC 169. Ex 202. SA
7. TF 41. MC 53. MC 65. MC 83. MC 170. Ex 203. SA
8. TF 42. MC 54. MC 66. MC 85. MC 171. Ex 204. SA
9. TF 43. MC 55. MC 67. MC 137. MC 172. Ex 212. SA
10. TF 44. MC 56. MC 68. MC 138. MC 173. Ex 213. SA
11. TF 45. MC 57. MC 73. MC 139. MC 174. Ex
12. TF 46. MC 58. MC 74. MC 140. MC 175. Ex
Learning Objective 2
14. TF 23. TF 88. MC 97. MC 106. MC 159. BE 196. C
15. TF 33. TF 89. MC 98. MC 107. MC 160. BE 197. C
16. TF 69. MC 90. MC 99. MC 108. MC 162. BE 198. C
17. TF 70. MC 91. MC 100. MC 109. MC 176. Ex 201. MA
18. TF 71. MC 92. MC 101. MC 141. MC 177. Ex 206. SA
19. TF 72. MC 93. MC 102. MC 142. MC 178. Ex 207. SA
20. TF 84. MC 94. MC 103. MC 143. MC 179. Ex 208. SA
21. TF 86. MC 95. MC 104. MC 144. MC 180. Ex 211. SA
22. TF 87. MC 96. MC 105. MC 145. MC 195. C




FOR INSTRUCTOR USE ONLY

, The Recording Process 2-3

SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPE

Learning Objective 3
24. TF 34. TF 114. MC 120. MC 126. MC 163. BE 199. C
25. TF 35. TF 115. MC 121. MC 127. MC 164. BE 201. MA
26. TF 110. MC 116. MC 122. MC 128. MC 167. Ex 209. SA
27. TF 111. MC 117. MC 123. MC 129. MC 181. Ex 210. SA
28. TF 112. MC 118. MC 124. MC 146. MC 182. Ex 211. SA
29. TF 113. MC 119. MC 125. MC 147. MC 184. Ex
Learning Objective 4
30 TF 78. MC 133. MC 148. MC 182. Ex 187. Ex 200. C
36. TF 130. MC 134. MC 149. MC 183. Ex 188. Ex 201. MA
37. TF 131. MC 135. MC 165. BE 185. Ex 189. Ex 205. SA
77. MC 132. MC 136. MC 166. BE 186. Ex 190. Ex
Learning Objective 5
150. MC 151. MC 152. MC 153. MC 154. MC 155. MC



Note: TF = True-False BE = Brief Exercise C = Completion
MC = Multiple Choice Ex = Exercise MA = Matching
SA = Short-Answer Essay


CHAPTER LEARNING OBJECTIVES
1. Describe how accounts, debits, and credits are used to record business transactions.
An account is a record of increases and decreases in specific asset, liability, or stockholders’
equity items. The terms debit and credit are synonymous with left and right. Assets,
dividends, and expenses are increased by debits and decreased by credits. Liabilities,
common stock, retained earnings, and revenues are increased by credits and decreased by
debits.
2. Indicate how a journal is used in the recording process. The basic steps in the recording
process are (a) analyze each transaction for its effects on the accounts, (b) enter the
transaction information in a journal, (c) transfer the journal information to the appropriate
accounts in the ledger.
The initial accounting record of a transaction is entered in a journal before the data are
entered in the accounts. A journal (a) discloses in one place the complete effects of a
transaction, (b) provides a chronological record of transactions, and (c) prevents or locates
errors because the debit and credit amounts for each entry can be easily compared.
3. Explain how a ledger and posting help in the recording process. The ledger is the entire
group of accounts maintained by a company. The ledger provides the balance in each of the
accounts as well as keeps track of changes in these balances. Posting is the transfer of
journal entries to the ledger accounts. This phase of the recording process accumulates the
effects of journalized transactions in the individual accounts.