,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 12th
Edition Marshall
Accounting - What the Numbers Mean, 12e (Marshall)
Chapter 2 Financial Statements and Accounting Concepts/Principles
1) Which of the following is not a transaction to be recorded in the accounting records of an entity?
A) Investment of cash by the owners.
B) Sale of product to customers.
C) Receipt of a plaque recognizing the firm's encouragement of employee participation in the
United Way fund drive.
D) Receipt of services from a "quick-print" shop in exchange for the promise to provide
advertising design services of equivalent value.
Answer: C
Difficulty: 1 Easy
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The balance sheet might also be called:
A) Statement of Financial Position.
B) Statement of Assets.
C) Statement of Changes in Financial Position.
D) Statement of Equity.
Answer: A
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-02 Identify and explain the kind of information reported in each financial
statement and describe how financial statements are related to each other.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1
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,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 12th
Edition Marshall
3) Transactions are summarized in:
A) the notes for the financial statements.
B) the independent auditor's report.
C) the entity's accounts.
D) the Accounting Standards Updates (ASUs).
Answer: C
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) A fiscal year:
A) is always the same as the calendar year.
B) is frequently selected based on the firm's operating cycle.
C) must always end on the same date each year.
D) must end on the last day of a month.
Answer: B
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Which of the following is not a principal form of business organization?
A) Partnership.
B) Sole proprietorship.
C) Limited unregistered business.
D) Corporation.
Answer: C
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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, DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 12th
Edition Marshall
6) The time frame associated with a balance sheet is:
A) a point in time in the past.
B) a one-year past period of time.
C) a single date in the future.
D) a function of the information included in it.
Answer: A
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-02 Identify and explain the kind of information reported in each financial
statement and describe how financial statements are related to each other.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) Current U.S. Generally Accepted Accounting Principles and auditing standards require the
financial statements of an entity for the reporting period to include:
A) earnings and gross receipts of cash for the period.
B) projected earnings for the subsequent period.
C) financial position at the end of the period.
D) current fair values of all assets at the end of the period.
Answer: C
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
8) The balance sheet equation can be represented by:
A) Assets = Liabilities + Stockholders' Equity
B) Assets – Liabilities = Stockholders' Equity
C) Net Assets = Stockholders' Equity
D) All of the answers are correct.
Answer: D
Difficulty: 1 Easy
Topic: Financial Statements
Learning Objective: 02-03 Explain the meaning and usefulness of the accounting equation.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
mynursytest.store
Edition Marshall
Accounting - What the Numbers Mean, 12e (Marshall)
Chapter 2 Financial Statements and Accounting Concepts/Principles
1) Which of the following is not a transaction to be recorded in the accounting records of an entity?
A) Investment of cash by the owners.
B) Sale of product to customers.
C) Receipt of a plaque recognizing the firm's encouragement of employee participation in the
United Way fund drive.
D) Receipt of services from a "quick-print" shop in exchange for the promise to provide
advertising design services of equivalent value.
Answer: C
Difficulty: 1 Easy
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) The balance sheet might also be called:
A) Statement of Financial Position.
B) Statement of Assets.
C) Statement of Changes in Financial Position.
D) Statement of Equity.
Answer: A
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-02 Identify and explain the kind of information reported in each financial
statement and describe how financial statements are related to each other.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 12th
Edition Marshall
3) Transactions are summarized in:
A) the notes for the financial statements.
B) the independent auditor's report.
C) the entity's accounts.
D) the Accounting Standards Updates (ASUs).
Answer: C
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) A fiscal year:
A) is always the same as the calendar year.
B) is frequently selected based on the firm's operating cycle.
C) must always end on the same date each year.
D) must end on the last day of a month.
Answer: B
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) Which of the following is not a principal form of business organization?
A) Partnership.
B) Sole proprietorship.
C) Limited unregistered business.
D) Corporation.
Answer: C
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 12th
Edition Marshall
6) The time frame associated with a balance sheet is:
A) a point in time in the past.
B) a one-year past period of time.
C) a single date in the future.
D) a function of the information included in it.
Answer: A
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-02 Identify and explain the kind of information reported in each financial
statement and describe how financial statements are related to each other.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) Current U.S. Generally Accepted Accounting Principles and auditing standards require the
financial statements of an entity for the reporting period to include:
A) earnings and gross receipts of cash for the period.
B) projected earnings for the subsequent period.
C) financial position at the end of the period.
D) current fair values of all assets at the end of the period.
Answer: C
Difficulty: 2 Medium
Topic: Financial Statements
Learning Objective: 02-01 Explain what transactions are.
Bloom's: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
8) The balance sheet equation can be represented by:
A) Assets = Liabilities + Stockholders' Equity
B) Assets – Liabilities = Stockholders' Equity
C) Net Assets = Stockholders' Equity
D) All of the answers are correct.
Answer: D
Difficulty: 1 Easy
Topic: Financial Statements
Learning Objective: 02-03 Explain the meaning and usefulness of the accounting equation.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
mynursytest.store
