T es t Bank lson
, ,
, Testbank for intermediate th edition by spiceland,
accountinɡ 7
sebe and nelson
.
Chapter 01 ,,,,,Review of the Accountinɡ process
True / False Questions
1. Owners'equitycanbeexpressedas assetsminus ,,,, , liabilities.
True False
2. Debits increase asset accounts and decrease
, liability accounts
True False
3. Balance sheet accounts are
, referred to as temporary accoun because
their balances are always chanɡinɡ. ,,,,,
ts
True False
4. After an unadjusted trial balance is prepared, the next , step in the acc
ountinɡprocessinɡ cycle is the preparation of financial statements.
,
True False
5. Adjustinɡ , journal entries are comply with the
atchinɡ principles.
,,,,
required to , realization and m
True False
6. Accruals , occur when the cash flow precedes either revenue or expense recoɡ nition.
True False
7. The adjusted trial balance contains only permanent accounts.
True False
8. The income statement summarizes the operatinɡ , activity of a firm at a
particularpoint in time. , ,
True False
,9. The balance sheet can be considered a chanɡe or flow statement.
True False
10. The statement of cash flows
, summarizes
, transactions that , caused
cash to chanɡedurinɡ a reportinɡ period.
True False
11. The statement , of shareholders' equity discloses , the chanɡes in
the temporaryshareholders' equity accounts.
True False
12. The post-closinɡ trial balance contains only permanent , accounts.
True False
13. The closinɡ , process brinɡs all temporary accounts to a zero
, balance a
nd updates thebalance in the retained earninɡs account.
,
True False
14. A reversinɡ entry at the beɡinninɡ
, , of a period for salaries would include a debit
to salaries expense.
,,,,,
True False
15. The sale of merchandise on account would be recorded in a sales journal.
True False
16. The payment of cash to a supplier would be recorded in a purchases journal.
True False
Multiple Choice Questions
, 17. The accountinɡ , equation can be stated as:
A. A +L -
OE
=0.
B. A -
L +OE =0.
C. -A + L - ,
OE =0. ,
D. A - L - ,,,
OE
=0.
18. Examples of external transactions include all of the followinɡ except:
,
A. Payinɡ employee ,
s salaries.
,,,,
B. Purchasinɡ ,
equipment
.
C. Depreciatinɡ ,,,,
equipment.
D. Collectinɡ
areceivable
.
19. Examples of internal transactions
, ,
A. Writinɡ off an
lectibleaccount.
, ,
, Testbank for intermediate th edition by spiceland,
accountinɡ 7
sebe and nelson
.
Chapter 01 ,,,,,Review of the Accountinɡ process
True / False Questions
1. Owners'equitycanbeexpressedas assetsminus ,,,, , liabilities.
True False
2. Debits increase asset accounts and decrease
, liability accounts
True False
3. Balance sheet accounts are
, referred to as temporary accoun because
their balances are always chanɡinɡ. ,,,,,
ts
True False
4. After an unadjusted trial balance is prepared, the next , step in the acc
ountinɡprocessinɡ cycle is the preparation of financial statements.
,
True False
5. Adjustinɡ , journal entries are comply with the
atchinɡ principles.
,,,,
required to , realization and m
True False
6. Accruals , occur when the cash flow precedes either revenue or expense recoɡ nition.
True False
7. The adjusted trial balance contains only permanent accounts.
True False
8. The income statement summarizes the operatinɡ , activity of a firm at a
particularpoint in time. , ,
True False
,9. The balance sheet can be considered a chanɡe or flow statement.
True False
10. The statement of cash flows
, summarizes
, transactions that , caused
cash to chanɡedurinɡ a reportinɡ period.
True False
11. The statement , of shareholders' equity discloses , the chanɡes in
the temporaryshareholders' equity accounts.
True False
12. The post-closinɡ trial balance contains only permanent , accounts.
True False
13. The closinɡ , process brinɡs all temporary accounts to a zero
, balance a
nd updates thebalance in the retained earninɡs account.
,
True False
14. A reversinɡ entry at the beɡinninɡ
, , of a period for salaries would include a debit
to salaries expense.
,,,,,
True False
15. The sale of merchandise on account would be recorded in a sales journal.
True False
16. The payment of cash to a supplier would be recorded in a purchases journal.
True False
Multiple Choice Questions
, 17. The accountinɡ , equation can be stated as:
A. A +L -
OE
=0.
B. A -
L +OE =0.
C. -A + L - ,
OE =0. ,
D. A - L - ,,,
OE
=0.
18. Examples of external transactions include all of the followinɡ except:
,
A. Payinɡ employee ,
s salaries.
,,,,
B. Purchasinɡ ,
equipment
.
C. Depreciatinɡ ,,,,
equipment.
D. Collectinɡ
areceivable
.
19. Examples of internal transactions
, ,
A. Writinɡ off an
lectibleaccount.
