TEST BANK For College Accounting
Chapters 16th Edition by David Haddock,
Verified And Correct Answers 2026 Exam
Prep!!
Accounting - CORRECT ANSWERS-Gathering financial information about a business.
Name four types of users - CORRECT ANSWERS-Owner, Managers, creditors, and
government
Owner - CORRECT ANSWERS-
Manager - CORRECT ANSWERS-
Creditor - CORRECT ANSWERS-
Government - CORRECT ANSWERS-
What is the six step procedure - CORRECT ANSWERS-ARCSRI
Analyzing - CORRECT ANSWERS-
Recording - CORRECT ANSWERS-
Classifying - CORRECT ANSWERS-
Summarizing - CORRECT ANSWERS-
Reporting - CORRECT ANSWERS-
Interpreting - CORRECT ANSWERS-
What is GAAP - CORRECT ANSWERS-Generally Accepted Accounting Principles
Generally Accepted Accounting Principles (GAAP) - CORRECT ANSWERS-Rules and
Regulations that governs accounting
Financial Accounting Standard Board (FASB) - CORRECT ANSWERS-Writes the rules
and regulations for accounting
IRS - CORRECT ANSWERS-Tax laws enforced by IRS but written by congress
,American Association of Accountants (AAA) - CORRECT ANSWERS-Teachers,
instructors, professors that teach accounting
CPA - CORRECT ANSWERS-Certified Public Accountant
AICPA - CORRECT ANSWERS-American Institute of Certified Public Accountants
ICC - CORRECT ANSWERS-Interstate Commerce Commission
SEC - CORRECT ANSWERS-Security & Exchange Commission
CEO and CFO - CORRECT ANSWERS-sign financial statement
Name three ownership type - CORRECT ANSWERS-Sole Proprietorship, Partnership,
Corporation,
Sole Proprietorship - CORRECT ANSWERS-One Owner
Partnership - CORRECT ANSWERS-Two of more partners
Corporation - CORRECT ANSWERS-Stockholders
Compound Entry - CORRECT ANSWERS-More than 2 accounts are being effected
Dual or Double Entry Accounting - CORRECT ANSWERS-Two accounts are effected
every time
Assets - CORRECT ANSWERS-Item owed to generate future revenue
Revenue - CORRECT ANSWERS-$ coming in for good or services provided
Liabilities - CORRECT ANSWERS-Anything a business owes to someone else
Expense - CORRECT ANSWERS-Cost of doing business
Capital - CORRECT ANSWERS-Owner's investment in the business
Drawing - CORRECT ANSWERS-Owner's taking funds out of the business, withdrawals
Name the 3 financial statements - CORRECT ANSWERS-Income Statement,
Statement of Owner's Equity, and Balance Sheet
What is on the Income Statement - CORRECT ANSWERS-Revenue and Expense
,What is on the Statement of Owner's Equity - CORRECT ANSWERS-Revenue,
Expense, Capital and Drawing
What is on the Balance Sheet - CORRECT ANSWERS-Assets, Liabilities, Revenue,
Expenses, Capital and Drawing
If you owe them, money going out - CORRECT ANSWERS-Accounts Payable
If they owe you, money coming in - CORRECT ANSWERS-Accounts Receivable
Accounting Equation - CORRECT ANSWERS-Assets = Liability + Owner's Equity
Footing - CORRECT ANSWERS-the balance of the debits and credits of a account
What does a trial balance show - CORRECT ANSWERS-That your debits equal your
credits
Which report shows all the information need for generating financial statements -
CORRECT ANSWERS-Trial Balance
What are the four steps to journalizing - CORRECT ANSWERS-Date,
Debit,
Credit,
Description
What are Charts of Account - CORRECT ANSWERS-All the accounts being used by
the business
What is posting - CORRECT ANSWERS-Taking from the General Journal and putting in
General Ledger
Four steps in posting - CORRECT ANSWERS-Date, Debit/Credit, Cross reference, post
reference
Ruling method is not correcting method - CORRECT ANSWERS-Ruling method is not
correcting method
Slide error - CORRECT ANSWERS-one column either way
Transposition error - CORRECT ANSWERS-reverse a number
Ruling Method - CORRECT ANSWERS-Draw a line, correct, initial
Correcting Method - CORRECT ANSWERS-Reverse entry, enter correct entry
, Debit Cash and credit Accounts Receivable - CORRECT ANSWERS-Mary Richardo,
CPA, has billed her clients for services performed. She subsequently receives
payments from her clients. What entry will she make upon receipt of the payments?
November 30 - CORRECT ANSWERS-A flower shop makes a large sale for $1,000 on
November 30. The customer is sent a statement on December 5 and a check is
received on December 10. The flower shop follows GAAP and applies the revenue
recognition principle. When is the $1,000 considered to be recognized?
adjusted trial balance. - CORRECT ANSWERS-The primary source used in the
preparation of the financial statements is the:
liability - CORRECT ANSWERS-Unearned revenue is classified as a(n):
Services performed on account. - CORRECT ANSWERS-Which of the following would
not result in unearned revenue?
accruals and deferrals. - CORRECT ANSWERS-Adjusting entries can be classified as:
events that change a company's financial statements are recognized in the period they
occur rather than in the period in which cash is paid or received. - CORRECT
ANSWERS-Under the accrual basis of accounting:
debit to an expense account and a credit to an asset account. - CORRECT ANSWERS-
As prepaid expenses expire with the passage of time, the correct adjusting entry will be
a:
Salaries and Wages Expense 2,700
Salaries and Wages Payable 2,700 - CORRECT ANSWERS-Snelling Tables paid
employee wages on and through Friday, January 26, and the next payroll will be paid in
February. There are three more working days in January (29-31). Employees work 5
days a week and the company pays $900 a day in wages. What will be the adjusting
entry to accrue wages expense at the end of January?
debit Interest Expense, $200; credit Interest Payable, $200. - CORRECT ANSWERS-
Raxon Company borrowed $40,000 from the bank signing a 6%, 3-month note on
September 1. Principal and interest are payable to the bank on December 1. If the
company prepares monthly financial statements, the adjusting entry that the company
should make for interest on September 30, would be:
The economic life of a business can be divided into artificial time periods. - CORRECT
ANSWERS-What is the periodicity assumption?
Expense recognition principle. - CORRECT ANSWERS-Which principle dictates that
efforts (expenses) be recorded with accomplishments (revenues)?
Chapters 16th Edition by David Haddock,
Verified And Correct Answers 2026 Exam
Prep!!
Accounting - CORRECT ANSWERS-Gathering financial information about a business.
Name four types of users - CORRECT ANSWERS-Owner, Managers, creditors, and
government
Owner - CORRECT ANSWERS-
Manager - CORRECT ANSWERS-
Creditor - CORRECT ANSWERS-
Government - CORRECT ANSWERS-
What is the six step procedure - CORRECT ANSWERS-ARCSRI
Analyzing - CORRECT ANSWERS-
Recording - CORRECT ANSWERS-
Classifying - CORRECT ANSWERS-
Summarizing - CORRECT ANSWERS-
Reporting - CORRECT ANSWERS-
Interpreting - CORRECT ANSWERS-
What is GAAP - CORRECT ANSWERS-Generally Accepted Accounting Principles
Generally Accepted Accounting Principles (GAAP) - CORRECT ANSWERS-Rules and
Regulations that governs accounting
Financial Accounting Standard Board (FASB) - CORRECT ANSWERS-Writes the rules
and regulations for accounting
IRS - CORRECT ANSWERS-Tax laws enforced by IRS but written by congress
,American Association of Accountants (AAA) - CORRECT ANSWERS-Teachers,
instructors, professors that teach accounting
CPA - CORRECT ANSWERS-Certified Public Accountant
AICPA - CORRECT ANSWERS-American Institute of Certified Public Accountants
ICC - CORRECT ANSWERS-Interstate Commerce Commission
SEC - CORRECT ANSWERS-Security & Exchange Commission
CEO and CFO - CORRECT ANSWERS-sign financial statement
Name three ownership type - CORRECT ANSWERS-Sole Proprietorship, Partnership,
Corporation,
Sole Proprietorship - CORRECT ANSWERS-One Owner
Partnership - CORRECT ANSWERS-Two of more partners
Corporation - CORRECT ANSWERS-Stockholders
Compound Entry - CORRECT ANSWERS-More than 2 accounts are being effected
Dual or Double Entry Accounting - CORRECT ANSWERS-Two accounts are effected
every time
Assets - CORRECT ANSWERS-Item owed to generate future revenue
Revenue - CORRECT ANSWERS-$ coming in for good or services provided
Liabilities - CORRECT ANSWERS-Anything a business owes to someone else
Expense - CORRECT ANSWERS-Cost of doing business
Capital - CORRECT ANSWERS-Owner's investment in the business
Drawing - CORRECT ANSWERS-Owner's taking funds out of the business, withdrawals
Name the 3 financial statements - CORRECT ANSWERS-Income Statement,
Statement of Owner's Equity, and Balance Sheet
What is on the Income Statement - CORRECT ANSWERS-Revenue and Expense
,What is on the Statement of Owner's Equity - CORRECT ANSWERS-Revenue,
Expense, Capital and Drawing
What is on the Balance Sheet - CORRECT ANSWERS-Assets, Liabilities, Revenue,
Expenses, Capital and Drawing
If you owe them, money going out - CORRECT ANSWERS-Accounts Payable
If they owe you, money coming in - CORRECT ANSWERS-Accounts Receivable
Accounting Equation - CORRECT ANSWERS-Assets = Liability + Owner's Equity
Footing - CORRECT ANSWERS-the balance of the debits and credits of a account
What does a trial balance show - CORRECT ANSWERS-That your debits equal your
credits
Which report shows all the information need for generating financial statements -
CORRECT ANSWERS-Trial Balance
What are the four steps to journalizing - CORRECT ANSWERS-Date,
Debit,
Credit,
Description
What are Charts of Account - CORRECT ANSWERS-All the accounts being used by
the business
What is posting - CORRECT ANSWERS-Taking from the General Journal and putting in
General Ledger
Four steps in posting - CORRECT ANSWERS-Date, Debit/Credit, Cross reference, post
reference
Ruling method is not correcting method - CORRECT ANSWERS-Ruling method is not
correcting method
Slide error - CORRECT ANSWERS-one column either way
Transposition error - CORRECT ANSWERS-reverse a number
Ruling Method - CORRECT ANSWERS-Draw a line, correct, initial
Correcting Method - CORRECT ANSWERS-Reverse entry, enter correct entry
, Debit Cash and credit Accounts Receivable - CORRECT ANSWERS-Mary Richardo,
CPA, has billed her clients for services performed. She subsequently receives
payments from her clients. What entry will she make upon receipt of the payments?
November 30 - CORRECT ANSWERS-A flower shop makes a large sale for $1,000 on
November 30. The customer is sent a statement on December 5 and a check is
received on December 10. The flower shop follows GAAP and applies the revenue
recognition principle. When is the $1,000 considered to be recognized?
adjusted trial balance. - CORRECT ANSWERS-The primary source used in the
preparation of the financial statements is the:
liability - CORRECT ANSWERS-Unearned revenue is classified as a(n):
Services performed on account. - CORRECT ANSWERS-Which of the following would
not result in unearned revenue?
accruals and deferrals. - CORRECT ANSWERS-Adjusting entries can be classified as:
events that change a company's financial statements are recognized in the period they
occur rather than in the period in which cash is paid or received. - CORRECT
ANSWERS-Under the accrual basis of accounting:
debit to an expense account and a credit to an asset account. - CORRECT ANSWERS-
As prepaid expenses expire with the passage of time, the correct adjusting entry will be
a:
Salaries and Wages Expense 2,700
Salaries and Wages Payable 2,700 - CORRECT ANSWERS-Snelling Tables paid
employee wages on and through Friday, January 26, and the next payroll will be paid in
February. There are three more working days in January (29-31). Employees work 5
days a week and the company pays $900 a day in wages. What will be the adjusting
entry to accrue wages expense at the end of January?
debit Interest Expense, $200; credit Interest Payable, $200. - CORRECT ANSWERS-
Raxon Company borrowed $40,000 from the bank signing a 6%, 3-month note on
September 1. Principal and interest are payable to the bank on December 1. If the
company prepares monthly financial statements, the adjusting entry that the company
should make for interest on September 30, would be:
The economic life of a business can be divided into artificial time periods. - CORRECT
ANSWERS-What is the periodicity assumption?
Expense recognition principle. - CORRECT ANSWERS-Which principle dictates that
efforts (expenses) be recorded with accomplishments (revenues)?
