Il*
Il*
Il* Il*
TEST BANK FOR Il* Il* Il*
ACCOUNTING 27TH EDIT ION Il* Il* Il*
CARL S. WARREN, JAME S M.
Il* Il* Il* Il* Il*
Il*
REEVE, JONATHAN DUCH AC
Il* Il*
Il*
,Il*
Il*
True / False
Il*
Il* Il* Il*
1. Accounts are records of increases and decreases in individual financial statement items.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: True Il* Il* Il* Il*
DIFFICULTY: Easy Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.ACBSP.APC.02
Il* Il* Il* Il* Il* Il* Il*
- GAAP Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
2. A chart of accounts is a listing of accounts that make up the journal.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: False Il* Il* Il* Il*
DIFFICULTY: Easy Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.ACBSP.APC.02
Il* Il* Il* Il* Il* Il* Il*
- GAAP Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
3. The chart of accounts should be the same for each business.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: False Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.03 - Business Forms Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
Il* Il*
Il*
4. Accounts payable are accounts that you expect will be paid to you.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: Il* Il* Il* False Il*
DIFFICULTY: Il* Il* Il* Moderate Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: Il* Il* Il* Il* ACCT.WARD.18.02-01 - 02-01 Il* Il* Il*
STATE STANDARDS: Il* Il* Il* Il* United States - OH - FN-Measurement Il* Il* Il* Il* Il* Il*
,ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.04 - Cash vs. Accrual Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
5. Consuming goods and services in the process of generating revenues results in expenses. a.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
True
Il* Il*
b. False
Il* Il* Il* Il*
ANSWER: True
Il* Il* Il* Il*
DIFFICULTY: Easy Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
6. Prepaid expenses are an example of an expense.
Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-04-Cash vs. Accrual
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.04 - Cash vs. Accrual Il* Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
Il* Il*
7. The unearned revenue account is an example of a liability.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: True
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-04-Cash vs. Accrual
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.04 - Cash vs. Accrual Il* Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
8. The drawing account is an expense.
Il* Il* Il* Il* Il* Il*
a. True Il*
, b. False Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
9. Accounts in the ledger are usually maintained in alphabetical order.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
Il* Il*
10. Depending on the account title, the right side of the account is referred to as the credit side.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True
Il* Il* Il* Il*
b. False
Il* Il* Il* Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
Il*
BUSPROG: Analytic Il* Il*
Il*
11. To determine the balance in an account, always subtract credits from debits. a. True
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
b. False
Il* Il* Il* Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
Il*
Il* Il*
TEST BANK FOR Il* Il* Il*
ACCOUNTING 27TH EDIT ION Il* Il* Il*
CARL S. WARREN, JAME S M.
Il* Il* Il* Il* Il*
Il*
REEVE, JONATHAN DUCH AC
Il* Il*
Il*
,Il*
Il*
True / False
Il*
Il* Il* Il*
1. Accounts are records of increases and decreases in individual financial statement items.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: True Il* Il* Il* Il*
DIFFICULTY: Easy Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.ACBSP.APC.02
Il* Il* Il* Il* Il* Il* Il*
- GAAP Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
2. A chart of accounts is a listing of accounts that make up the journal.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: False Il* Il* Il* Il*
DIFFICULTY: Easy Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.ACBSP.APC.02
Il* Il* Il* Il* Il* Il* Il*
- GAAP Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
3. The chart of accounts should be the same for each business.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: False Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.03 - Business Forms Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
Il* Il*
Il*
4. Accounts payable are accounts that you expect will be paid to you.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: Il* Il* Il* False Il*
DIFFICULTY: Il* Il* Il* Moderate Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: Il* Il* Il* Il* ACCT.WARD.18.02-01 - 02-01 Il* Il* Il*
STATE STANDARDS: Il* Il* Il* Il* United States - OH - FN-Measurement Il* Il* Il* Il* Il* Il*
,ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.04 - Cash vs. Accrual Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
5. Consuming goods and services in the process of generating revenues results in expenses. a.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
True
Il* Il*
b. False
Il* Il* Il* Il*
ANSWER: True
Il* Il* Il* Il*
DIFFICULTY: Easy Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
6. Prepaid expenses are an example of an expense.
Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-04-Cash vs. Accrual
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.04 - Cash vs. Accrual Il* Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
Il* Il*
7. The unearned revenue account is an example of a liability.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: True
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-04-Cash vs. Accrual
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.04 - Cash vs. Accrual Il* Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
8. The drawing account is an expense.
Il* Il* Il* Il* Il* Il*
a. True Il*
, b. False Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
9. Accounts in the ledger are usually maintained in alphabetical order.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True Il*
b. False Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
BUSPROG: Analytic Il* Il*
Il*
Il*
Il* Il*
10. Depending on the account title, the right side of the account is referred to as the credit side.
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
a. True
Il* Il* Il* Il*
b. False
Il* Il* Il* Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
ACCT.AICPA.FN.03 - Measurement Il* Il* Il*
Il*
BUSPROG: Analytic Il* Il*
Il*
11. To determine the balance in an account, always subtract credits from debits. a. True
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
b. False
Il* Il* Il* Il*
ANSWER: False
Il* Il* Il* Il*
DIFFICULTY: Moderate Il* Il* Il* Il*
Bloom's: Remembering Il* Il*
LEARNING OBJECTIVES: ACCT.WARD.18.02-01 - 02-01
Il* Il* Il* Il* Il* Il* Il*
STATE STANDARDS:
Il* United States - IN - APC-06-Recording Transactions
Il* Il* Il* Il* Il* Il* Il* Il* Il* Il*
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP Il* Il* Il* Il* Il* Il* Il*
ACCT.ACBSP.APC.06 - Recording Transactions Il* Il* Il* Il*
