DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6thEditi
k k k k k k k k k k
on Wild k
Chapter 02 k k
Accounting for Business Transactions
k k k
Truek/kFalsekQuestions
1. Thekfirstkstepkinkthekprocessingkofkaktransactionkisktokanalyzekthektransactionkandksourcekd
ocuments.
True False
2. Preparationkofkaktrialkbalancekiskthekfirstkstepkinkprocessingkakfinancialktransaction.
True False
3. Sourcekdocumentskprovidekevidencekofkbusinessktransactionskandkarekthekbasiskforkaccountingke
ntries.
True False
4. Itemsksuchkasksalesktickets,kbankkstatements,kchecks,kandkpurchasekorderskarekexampleskofkakb
usiness'sksourcekdocuments.
True False
5. Ankaccountkiskakrecordkofkincreaseskandkdecreaseskinkakspecifickasset,kliability,kequity,krevenue,korke
xpensekitem.
True False
6. Akcustomer'skpromisektokpaykonkcreditkiskclassifiedkaskankaccountkpayablekbykthekseller.kTr
ue False
2-1
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HillkEducation.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGraw-HillkEducation.
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,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6thEditi
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on Wild k
7. Dividendskpaidktokthekstockholderskarekakbusinesskexpense.
True False
8. Thekpurchasekofklandkandkbuildingskwillkgenerallykbekrecordedk inktheksamekledgerkaccount.
True False
9. Unearnedkrevenueskarekclassifiedkaskliabilities.
True False
10. Cashkpaidktokstockholderskbykthekbusinesskofkakcorporationkandkusedkforkpersonalkexpenses,kshouldkb
ektreatedkaskankexpensekofkthekbusiness.
True False
11. Whenkakcompanykprovideskserviceskforkwhichkcashkwillknotkbekreceivedkuntilksomekfuturekdate,kthekc
ompanykshouldkrecordkthekamountkchargedkaskaccountskreceivable.
True False
12. Akcompany'skchartkofkaccountskiskaklistkofkallkthekaccountskusedkandkincludeskankidentificationkn
umberkassignedktokeachkaccount.
True False
13. Ankaccount'skbalancekiskthekdifferencekbetweenkthektotalkdebitskandktotalkcreditskforkthekaccount,kin
cludingkanykbeginningkbalance.
True False
14. Thekrightksidekofkankaccountkiskcalledkthekdebitkside.kT
rue False
2-2
Copyrightk©k2016kMcGraw-
HillkEducation.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGraw-HillkEducation.
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,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6thEditi
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on Wild k
15. Inkakdouble-
entrykaccountingksystem,kthektotalkdollarkamountkdebitedkmustkalwayskequalkthektotalkdollarkamoun
tkcredited.
True False
16. Increaseskinkliabilitykaccountskarekrecordedkaskdebits.
True False
17. Debitskincreasekassetkandkexpensekaccounts.
True False
18. Creditskalwayskincreasekaccountkbalances.k
True False
19. Creditingkankexpensekaccountkdecreaseskit.
True False
20. Akrevenuekaccountknormallykhaskakdebitkbalance.
True False
21. Assetkaccountskareknormallykdecreasedkbykdebits.
True False
22. Debitkmeanskincreasekandkcreditkmeanskdecreasekforkallkaccounts.kT
rue False
23. Assetkaccountsknormallykhavekdebitkbalanceskandkrevenuekaccountsknormallykhavekcreditkbalances.
True False
2-3
Copyrightk©k2016kMcGraw-
HillkEducation.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGraw-HillkEducation.
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, DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6thEditi
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on Wild k
24. Akdividendknormallykhaskakdebitkbalance.
True False
25. Akdebitkentrykiskalwayskankincreasekinkthekaccount.
True False
26. Aktransactionkthatkcreditskankassetkaccountkandkcreditskakliabilitykaccountkmustkalsokaffectkonekork
morekotherkaccounts.
True False
27. Aktransactionkthatkdecreaseskakliabilitykandkincreaseskankassetkmustkalsokaffectkonekorkmorekotherka
ccounts.
True False
28. Ifkinsurancekcoveragekforktheknextktwokyearskiskpaidkforkinkadvance,kthekamountkofkthekpaymentkiskd
ebitedktokankassetkaccountkcalledkPrepaidkInsurance.
True False
29. Thekpurchasekofksupplieskonkcreditkshouldkbekrecordedk withkakdebitktokSupplieskandkakcreditktokA
ccountskPayable.
True False
30. Ifkakcompanykpurchaseskequipmentkpayingkcash,kthekjournalkentryktokrecordkthisktransactionkwillkin
cludekakdebitktokCash.
True False
31. Ifkakcompanykprovideskservicesktokakcustomerkonkcredit,kthekcompanykprovidingkthekservicekshouldkcr
editkAccountskReceivable.
True False
2-4
Copyrightk©k2016kMcGraw-
HillkEducation.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGraw-HillkEducation.
mynursytest.store
k k k k k k k k k k
on Wild k
Chapter 02 k k
Accounting for Business Transactions
k k k
Truek/kFalsekQuestions
1. Thekfirstkstepkinkthekprocessingkofkaktransactionkisktokanalyzekthektransactionkandksourcekd
ocuments.
True False
2. Preparationkofkaktrialkbalancekiskthekfirstkstepkinkprocessingkakfinancialktransaction.
True False
3. Sourcekdocumentskprovidekevidencekofkbusinessktransactionskandkarekthekbasiskforkaccountingke
ntries.
True False
4. Itemsksuchkasksalesktickets,kbankkstatements,kchecks,kandkpurchasekorderskarekexampleskofkakb
usiness'sksourcekdocuments.
True False
5. Ankaccountkiskakrecordkofkincreaseskandkdecreaseskinkakspecifickasset,kliability,kequity,krevenue,korke
xpensekitem.
True False
6. Akcustomer'skpromisektokpaykonkcreditkiskclassifiedkaskankaccountkpayablekbykthekseller.kTr
ue False
2-1
Copyrightk©k2016kMcGraw-
HillkEducation.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGraw-HillkEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6thEditi
k k k k k k k k k k
on Wild k
7. Dividendskpaidktokthekstockholderskarekakbusinesskexpense.
True False
8. Thekpurchasekofklandkandkbuildingskwillkgenerallykbekrecordedk inktheksamekledgerkaccount.
True False
9. Unearnedkrevenueskarekclassifiedkaskliabilities.
True False
10. Cashkpaidktokstockholderskbykthekbusinesskofkakcorporationkandkusedkforkpersonalkexpenses,kshouldkb
ektreatedkaskankexpensekofkthekbusiness.
True False
11. Whenkakcompanykprovideskserviceskforkwhichkcashkwillknotkbekreceivedkuntilksomekfuturekdate,kthekc
ompanykshouldkrecordkthekamountkchargedkaskaccountskreceivable.
True False
12. Akcompany'skchartkofkaccountskiskaklistkofkallkthekaccountskusedkandkincludeskankidentificationkn
umberkassignedktokeachkaccount.
True False
13. Ankaccount'skbalancekiskthekdifferencekbetweenkthektotalkdebitskandktotalkcreditskforkthekaccount,kin
cludingkanykbeginningkbalance.
True False
14. Thekrightksidekofkankaccountkiskcalledkthekdebitkside.kT
rue False
2-2
Copyrightk©k2016kMcGraw-
HillkEducation.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGraw-HillkEducation.
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,DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6thEditi
k k k k k k k k k k
on Wild k
15. Inkakdouble-
entrykaccountingksystem,kthektotalkdollarkamountkdebitedkmustkalwayskequalkthektotalkdollarkamoun
tkcredited.
True False
16. Increaseskinkliabilitykaccountskarekrecordedkaskdebits.
True False
17. Debitskincreasekassetkandkexpensekaccounts.
True False
18. Creditskalwayskincreasekaccountkbalances.k
True False
19. Creditingkankexpensekaccountkdecreaseskit.
True False
20. Akrevenuekaccountknormallykhaskakdebitkbalance.
True False
21. Assetkaccountskareknormallykdecreasedkbykdebits.
True False
22. Debitkmeanskincreasekandkcreditkmeanskdecreasekforkallkaccounts.kT
rue False
23. Assetkaccountsknormallykhavekdebitkbalanceskandkrevenuekaccountsknormallykhavekcreditkbalances.
True False
2-3
Copyrightk©k2016kMcGraw-
HillkEducation.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGraw-HillkEducation.
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, DOWNLOAD THE Test Bank for Financial and Managerial Accounting 6thEditi
k k k k k k k k k k
on Wild k
24. Akdividendknormallykhaskakdebitkbalance.
True False
25. Akdebitkentrykiskalwayskankincreasekinkthekaccount.
True False
26. Aktransactionkthatkcreditskankassetkaccountkandkcreditskakliabilitykaccountkmustkalsokaffectkonekork
morekotherkaccounts.
True False
27. Aktransactionkthatkdecreaseskakliabilitykandkincreaseskankassetkmustkalsokaffectkonekorkmorekotherka
ccounts.
True False
28. Ifkinsurancekcoveragekforktheknextktwokyearskiskpaidkforkinkadvance,kthekamountkofkthekpaymentkiskd
ebitedktokankassetkaccountkcalledkPrepaidkInsurance.
True False
29. Thekpurchasekofksupplieskonkcreditkshouldkbekrecordedk withkakdebitktokSupplieskandkakcreditktokA
ccountskPayable.
True False
30. Ifkakcompanykpurchaseskequipmentkpayingkcash,kthekjournalkentryktokrecordkthisktransactionkwillkin
cludekakdebitktokCash.
True False
31. Ifkakcompanykprovideskservicesktokakcustomerkonkcredit,kthekcompanykprovidingkthekservicekshouldkcr
editkAccountskReceivable.
True False
2-4
Copyrightk©k2016kMcGraw-
HillkEducation.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGraw-HillkEducation.
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