Survey of Accounting 3rd Edition Test Bank – Kimmel Weygandt Mitchell – Complete Chapter Questions & Answers

Test Bank
for Survey of Accounting,
3rd Edition by Paul D.
Kimmel, Jerry J. Weygandt, Jill E. Mitchell

,Test Bank for Survey of Accounting, 3rd Edition by Paul D.
Kimmel, Jerry J. Weygandt, Jill E. Mitchell
Survey of Accounting, 3e (Kimmel)
Appendix D Double-Entry Accounting System

1) A new account is opened for each transaction entered into by a business firm.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

2) The recording process becomes more efficient and informative if all transactions are recorded
in one account.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

3) An account consists of two parts: (1) a left or debit side and (2) a right or credit side.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

4) For a T-account, an account balance is the difference in total dollars between total debit
amounts and total credit amounts.
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1




1

,5) An account is often referred to as a T-account because of the way it is constructed.
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

6) A debit to an account always indicates an increase in that account.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

7) If a revenue account is credited, the revenue account is increased.
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

8) The normal balance of all accounts is a debit.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

9) Debit and credit can be interpreted to mean "bad" and "good", respectively.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1




2

, 10) A credit means that an account has been increased.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

11) A decrease in a liability account is recorded by a debit.
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

12) An increase in an asset is recorded by a debit.
Answer: TRUE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

13) The double-entry system of accounting refers to the placement of a double line at the end of
a column of figures.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1

14) A credit balance in a liability account indicates that an error in recording has occurred.
Answer: FALSE
Diff: 1
LO: 1
Bloom: K
AACSB / IMA: None / Reporting
AICPA: BB: None; FC: Reporting; PC: None
Minutes: 1



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