1
,Test Bank for Survey of Accounting, 3rd Edition by Paul D.
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Kimmel, Jerry J. Weygandt, Jill E. Mitchell
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Survey of Accounting, 3e (Kimmel)
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Appendix D Double-Entry Accounting System i i i
1) A new account is opened for each transaction entered into by a business firm.
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Answer: FALSE
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Diff: 1 i
LO: 1 i i
Bloom: K i i
AACSB / IMA: None / Reporting i i i i i i
AICPA: BB: None; FC: Reporting; PC: None i i i i i i
Minutes: 1
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2) The recording process becomes more efficient and informative if all transactions are recorded in
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one account.
i i
Answer: FALSE i
Diff: 1
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LO: 1 i i
Bloom: K i i
AACSB / IMA: None / Reporting i i i i i i
AICPA: BB: None; FC: Reporting; PC: None i i i i i i
Minutes: 1
i i
3) An account consists of two parts: (1) a left or debit side and (2) a right or credit side.
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Answer: FALSE
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Diff: 1 i
LO: 1 i i
Bloom: K i i
AACSB / IMA: None / Reporting i i i i i i
AICPA: BB: None; FC: Reporting; PC: None i i i i i i
Minutes: 1
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4) For a T-account, an account balance is the difference in total dollars between total debit
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amounts and total credit amounts.
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Answer: TRUE i
Diff: 1
i i
LO: 1 i i
Bloom: K i i
AACSB / IMA: None / Reporting i i i i i i
AICPA: BB: None; FC: Reporting; PC: None i i i i i i
Minutes: 1
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2
,5) An account is often referred to as a T-account because of the way it is constructed.
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Answer: TRUE
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Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
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AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
6) A debit to an account always indicates an increase in that account.
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Answer: FALSE
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Diff: 1 i
LO: 1
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Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
7) If a revenue account is credited, the revenue account is increased.
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Answer: TRUE
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Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
8) The normal balance of all accounts is a debit.
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Answer: FALSE
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Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
9) Debit and credit can be interpreted to mean "bad" and "good", respectively.
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Answer: FALSE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
3
, 10) A credit means that an account has been increased.
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Answer: FALSE
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Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
11) A decrease in a liability account is recorded by a debit.
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Answer: TRUE
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Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
12) An increase in an asset is recorded by a debit.
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Answer: TRUE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
13) The double-entry system of accounting refers to the placement of a double line at the end of a
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column of figures.
i i i
Answer: FALSE i
Diff: 1
i i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
14) A credit balance in a liability account indicates that an error in recording has occurred.
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Answer: FALSE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
4
,Test Bank for Survey of Accounting, 3rd Edition by Paul D.
i i i i i i i i i i
Kimmel, Jerry J. Weygandt, Jill E. Mitchell
i i i i i i i
Survey of Accounting, 3e (Kimmel)
i i i i
Appendix D Double-Entry Accounting System i i i
1) A new account is opened for each transaction entered into by a business firm.
i i i i i i i i i i i i i
Answer: FALSE
i i
Diff: 1 i
LO: 1 i i
Bloom: K i i
AACSB / IMA: None / Reporting i i i i i i
AICPA: BB: None; FC: Reporting; PC: None i i i i i i
Minutes: 1
i i
2) The recording process becomes more efficient and informative if all transactions are recorded in
i i i i i i i i i i i i i
one account.
i i
Answer: FALSE i
Diff: 1
i i
LO: 1 i i
Bloom: K i i
AACSB / IMA: None / Reporting i i i i i i
AICPA: BB: None; FC: Reporting; PC: None i i i i i i
Minutes: 1
i i
3) An account consists of two parts: (1) a left or debit side and (2) a right or credit side.
i i i i i i i i i i i i i i i i i i
Answer: FALSE
i i
Diff: 1 i
LO: 1 i i
Bloom: K i i
AACSB / IMA: None / Reporting i i i i i i
AICPA: BB: None; FC: Reporting; PC: None i i i i i i
Minutes: 1
i i
4) For a T-account, an account balance is the difference in total dollars between total debit
i i i i i i i i i i i i i i
amounts and total credit amounts.
i i i i i
Answer: TRUE i
Diff: 1
i i
LO: 1 i i
Bloom: K i i
AACSB / IMA: None / Reporting i i i i i i
AICPA: BB: None; FC: Reporting; PC: None i i i i i i
Minutes: 1
i i
2
,5) An account is often referred to as a T-account because of the way it is constructed.
i i i i i i i i i i i i i i i
Answer: TRUE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
6) A debit to an account always indicates an increase in that account.
i i i i i i i i i i i
Answer: FALSE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
7) If a revenue account is credited, the revenue account is increased.
i i i i i i i i i i
Answer: TRUE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
8) The normal balance of all accounts is a debit.
i i i i i i i i
Answer: FALSE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
9) Debit and credit can be interpreted to mean "bad" and "good", respectively.
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Answer: FALSE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
3
, 10) A credit means that an account has been increased.
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Answer: FALSE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
11) A decrease in a liability account is recorded by a debit.
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Answer: TRUE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
12) An increase in an asset is recorded by a debit.
i i i i i i i i i
Answer: TRUE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
13) The double-entry system of accounting refers to the placement of a double line at the end of a
i i i i i i i i i i i i i i i i i
column of figures.
i i i
Answer: FALSE i
Diff: 1
i i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
14) A credit balance in a liability account indicates that an error in recording has occurred.
i i i i i i i i i i i i i i
Answer: FALSE
i i
Diff: 1 i
LO: 1
i i
Bloom: K i i
AACSB / IMA: None / Reporting
i i i i i i
AICPA: BB: None; FC: Reporting; PC: None
i i i i i i
Minutes: 1
i i
4
