Test Bank with Solution Manual for Survey of Accounting 3rd Edition by Paul D. Kimmel

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TEST BANK
Survey of Accounting, 3rd Edition
by Kimmel, Weygandt, Mitchell
Chapters 1 to 18 with Appendix D, E, F, G & H




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TABLE OF CONTENTS
CHAPTERS

1 Introduction to Financial Statements

2 A Further Look at The Balance Sheet

3 The Accounting Information System

4 Accrual Accounting Concepts

5 Fraud, Internal Control, and Cash

6 Merchandising Operations andthe Multiple-Step Income Statement

7 Reporting and Analyzing Inventory and Receivables

8 Reporting and Analyzing Long-Lived Assets

9 Reporting and Analyzing Liabilities and Stockholders’ Equity

10 Financial Analysis: The Big
Picture 11ManagerialAccounting

12 Job Order Costing

13 Cost-Volume-Profit

14 Incremental Analysis

15 Budgetary Planning

16 Budgetary Control and Responsibility Accounting

17 Standard Costs and Balanced Scorecard

18 Planning for Capital Investments




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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

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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