,DOWNLOAD THE Test Bank for Financial Accounting Information for
n n n n n n n n
Decisions 8th Edition John Wild
n n n n n
Chapter 02 n
Financial Statements and the Accounting
n n n n n
System
n
True n/ nFalse nQuestions
1. The nfirst nstep nto nget nfrom ntransactions nand nevents nto nfinancial nstatements nis nto
nidentify neach ntransaction nfrom nsource ndocuments.
True False
2. Preparation nof na ntrial nbalance nis nthe nfirst nstep nin nprocessing na nfinancial ntransaction.
True False
3. Source ndocuments nidentify nand ndescribe nbusiness ntransactions nand nare nthe nbasis nfor
naccounting nentries.
True False
4. Items nsuch nas nsales ntickets, nbank nstatements, nchecks, nand npurchase norders nare
nexamples nof na nbusiness's nsource ndocuments.
True False
5. An naccount nis na nrecord nof nincreases nand ndecreases nin na nspecific nasset, nliability, nequity,
nrevenue, nor nexpense nitem.
True False
2-1
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior nwritten nconsent nof
nMcGraw-Hill n Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Accounting Information for
n n n n n n n n
Decisions 8th Edition John Wild
n n n n n
6. A ncustomer's npromise nto npay non ncredit nis nclassified nas nan naccount npayable nby nthe nseller.
True False
7. Dividends npaid nto nthe nstockholders nare na nbusiness nexpense.
True False
8. The npurchase nof nland nand nbuildings nwill ngenerally nbe nrecorded nin nthe nsame nledger naccount.
True False
9. Unearned nrevenues nare nclassified nas nliabilities.
True False
10. Cash npaid nto nstockholders nby nthe nbusiness nof na ncorporation nand nused nfor npersonal
nexpenses, nshould nbe ntreated nas nan nexpense nof nthe nbusiness.
True False
11. When na ncompany nprovides nservices nfor nwhich ncash nwill nnot nbe nreceived nuntil nsome nfuture
ndate, nthe ncompany nshould nrecord nthe namount ncharged nas naccounts nreceivable.
True False
12. A ncompany's nchart nof naccounts nis na nlist nof nall nthe naccounts nused nand nincludes nan
nidentification nnumber nassigned nto neach naccount.
True False
13. An naccount's nbalance nis nthe ndifference nbetween nthe ntotal ndebits nand ntotal ncredits nfor nthe
naccount, nincluding nany nbeginning nbalance.
True False
2-2
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior nwritten nconsent nof
nMcGraw-Hill n Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting Information for
n n n n n n n n
Decisions 8th Edition John Wild
n n n n n
14. The nright nside nof nan naccount nis ncalled nthe ndebit nside.
True False
15. In na ndouble-entry naccounting nsystem, nthe ntotal ndollar namount ndebited nmust nalways nequal
nthe ntotal ndollar namount ncredited.
True False
16. Increases nin nliability naccounts nare nrecorded nas ndebits.
True False
17. Debits nincrease nasset nand nexpense naccounts.
True False
18. Credits nalways nincrease naccount nbalances.
True False
19. Crediting nan nexpense naccount ndecreases nit.
True False
20. A nrevenue naccount nnormally nhas na ndebit nbalance.
True False
21. Asset naccounts nare nnormally ndecreased nby ndebits.
True False
22. Debit nmeans nincrease nand ncredit nmeans ndecrease nfor nall naccounts.
True False
2-3
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior nwritten nconsent nof
nMcGraw-Hill n Education.
mynursytest.store
n n n n n n n n
Decisions 8th Edition John Wild
n n n n n
Chapter 02 n
Financial Statements and the Accounting
n n n n n
System
n
True n/ nFalse nQuestions
1. The nfirst nstep nto nget nfrom ntransactions nand nevents nto nfinancial nstatements nis nto
nidentify neach ntransaction nfrom nsource ndocuments.
True False
2. Preparation nof na ntrial nbalance nis nthe nfirst nstep nin nprocessing na nfinancial ntransaction.
True False
3. Source ndocuments nidentify nand ndescribe nbusiness ntransactions nand nare nthe nbasis nfor
naccounting nentries.
True False
4. Items nsuch nas nsales ntickets, nbank nstatements, nchecks, nand npurchase norders nare
nexamples nof na nbusiness's nsource ndocuments.
True False
5. An naccount nis na nrecord nof nincreases nand ndecreases nin na nspecific nasset, nliability, nequity,
nrevenue, nor nexpense nitem.
True False
2-1
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior nwritten nconsent nof
nMcGraw-Hill n Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Accounting Information for
n n n n n n n n
Decisions 8th Edition John Wild
n n n n n
6. A ncustomer's npromise nto npay non ncredit nis nclassified nas nan naccount npayable nby nthe nseller.
True False
7. Dividends npaid nto nthe nstockholders nare na nbusiness nexpense.
True False
8. The npurchase nof nland nand nbuildings nwill ngenerally nbe nrecorded nin nthe nsame nledger naccount.
True False
9. Unearned nrevenues nare nclassified nas nliabilities.
True False
10. Cash npaid nto nstockholders nby nthe nbusiness nof na ncorporation nand nused nfor npersonal
nexpenses, nshould nbe ntreated nas nan nexpense nof nthe nbusiness.
True False
11. When na ncompany nprovides nservices nfor nwhich ncash nwill nnot nbe nreceived nuntil nsome nfuture
ndate, nthe ncompany nshould nrecord nthe namount ncharged nas naccounts nreceivable.
True False
12. A ncompany's nchart nof naccounts nis na nlist nof nall nthe naccounts nused nand nincludes nan
nidentification nnumber nassigned nto neach naccount.
True False
13. An naccount's nbalance nis nthe ndifference nbetween nthe ntotal ndebits nand ntotal ncredits nfor nthe
naccount, nincluding nany nbeginning nbalance.
True False
2-2
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior nwritten nconsent nof
nMcGraw-Hill n Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting Information for
n n n n n n n n
Decisions 8th Edition John Wild
n n n n n
14. The nright nside nof nan naccount nis ncalled nthe ndebit nside.
True False
15. In na ndouble-entry naccounting nsystem, nthe ntotal ndollar namount ndebited nmust nalways nequal
nthe ntotal ndollar namount ncredited.
True False
16. Increases nin nliability naccounts nare nrecorded nas ndebits.
True False
17. Debits nincrease nasset nand nexpense naccounts.
True False
18. Credits nalways nincrease naccount nbalances.
True False
19. Crediting nan nexpense naccount ndecreases nit.
True False
20. A nrevenue naccount nnormally nhas na ndebit nbalance.
True False
21. Asset naccounts nare nnormally ndecreased nby ndebits.
True False
22. Debit nmeans nincrease nand ncredit nmeans ndecrease nfor nall naccounts.
True False
2-3
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior nwritten nconsent nof
nMcGraw-Hill n Education.
mynursytest.store
