Test Bank for Survey of Accounting, 3rd Edition by Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell ; ISBN13: 9781119895688. (Full Chapters included Chapter 1 to 19

,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
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

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

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

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

12) An increase in an asset is recorded by a debit.
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
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.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
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



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