Test Bank for Financial Accounting for MBAs 7th Edition By Easton, Wild, Halsey and McAnally (All Chapters, 100% Original Verified, A+ Grade)

,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 7th
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Edition Wild b b




Chapter2 b




ACCOUNTING FOR BUSINESSTRANSACTIONS
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True /False Questions b b




1. The first step in the processing of a transaction is to analyze the transaction and source
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documents.
b




Answer: True b




Blooms: Remember b



bAACSB:
Communication AICPA
b b



BB: Industry
b b



AICPA FN: Decision Making
b b b



bDifficulty: 1 Easy b b



Learning Objective: 02-C1 b b



Topic: Analyzing and Recording Process
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2. Preparation of a trial balance is the first step in processing a financial transaction.
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Answer: False b




Blooms: Remember b



bAACSB:
Communication AICPA
b b



BB: Industry
b b




AICPA FN: Decision Making
b b b



bDifficulty: 1 Easy b b



Learning Objective: 02-C1 b b




Topic: Analyzing and Recording Process
b b b b




3. Source documents identify and describe transactions and events entering the accounting
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process.
b




Answer: True b




Blooms: Remember b




bAACSB:
Communication AICPA
b b




BB: Industry
b b



AICPA FN: Decision Making
b b b




bDifficulty: 1 Easy b b



Learning Objective: 02-C1 b b




Topic: Analyzing and Recording Process
b b b b




Copyright © 2018 McGraw-Hill Education. All rights reserved.
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No reproduction or distribution without the prior written consent of McGraw-Hill Education
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,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 7th
b b b b b b b b b




Edition Wild b b




4. Items such as sales tickets, bank statements, checks, and purchase orders are examples of a
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business’s source documents.
b b b




Answer: True b




Blooms: Remember b




bAACSB:
Communication AICPA
b b




BB: Industry
b b



AICPA FN: Decision Making
b b b




bDifficulty: 1 Easy b b



Learning Objective: 02-C1 b b




Topic: Analyzing and Recording Process
b b b b




5. An account is a record of increases and decreases in a specific asset, liability, equity,
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revenue, or expense item.
b b b b




Answer: True b




Blooms: Remember b



bAACSB:
Communication AICPA
b b



BB: Industry
b b



AICPA FN: Decision Making
b b b



bDifficulty: 1 Easy b b



Learning Objective: 02-C2 b b




Topic: The Account and Its Analysis
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6. A customer’s promise to pay on credit is classified as an account payable by the seller.
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Answer: False b




Blooms: Remember b



bAACSB:
Communication AICPA
b b



BB: Industry
b b




AICPA FN: Decision Making
b b b




bDifficulty: 1 Easy b b



Learning Objective: 02-C2 b b




Topic: The Account and Its Analysis
b b b b b




7. Dividends paid to stockholders are a business expense. b b b b b b b




Answer: False b




Blooms: Remember b




bAACSB:
Communication AICPA
b b




BB: Industry
b b



AICPA FN: Decision Making
b b b




bDifficulty: 1 Easy b b



Learning Objective: 02-C2 b b



Topic: The Account and Its Analysis
b b b b b




Copyright © 2018 McGraw-Hill Education. All rights reserved.
b b b b b b b




No reproduction or distribution without the prior written consent of McGraw-Hill Education
b b b b b b b b b b b




mynursytest.store

, DOWNLOAD THE Test Bank for Financial and Managerial Accounting 7th
b b b b b b b b b




Edition Wild b b




8. The purchase of land and buildings will generally be recorded in the same ledger
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account.
b




Answer: False b




Blooms: Remember b




bAACSB:
Communication AICPA
b b




BB: Industry
b b



AICPA FN: Decision Making
b b b




bDifficulty: 1 Easy b b



Learning Objective: 02-C2 b b




Topic: The Account and Its Analysis
b b b b b




9. Unearned revenues are classified as liabilities. b b b b b




Answer: True b




Blooms: Remember b



bAACSB:
Communication AICPA
b b



BB: Industry
b b



AICPA FN: Decision Making
b b b



bDifficulty: 1 Easy b b



Learning Objective: 02-C2 b b



Topic: The Account and Its Analysis
b b b b b




10. Dividends distributed to stockholders should be treated as an expense of the business.
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Answer: False b




Blooms: Remember b




AACSB: Communication
b b




bAICPA BB: Industry b b



AICPA FN: Decision Making
b b b



bDifficulty: 1 Easy b b



Learning Objective: 02-C2 b b




Topic: The Account and Its Analysis
b b b b b




11. When a company provides services for which cash will not be received until some
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future date, the company should record the amount billed as accounts receivable.
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Answer: True b




Blooms: Understand b




bAACSB:
Communication AICPA
b b




BB: Industry
b b



AICPA FN: Decision Making
b b b




bDifficulty:2 Medium b




bLearning Objective: 02-C2 b b



Topic: The Account and Its Analysis
b b b b b




Copyright © 2018 McGraw-Hill Education. All rights reserved.
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No reproduction or distribution without the prior written consent of McGraw-Hill Education
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mynursytest.store