Fullfile at http://testbankscafe.eu/Test-Bank-for-Intermediate-Accounting-7th-Edition-Spiceland,-Sepe,-Nelson
Test Bank
,,,,,,,, for Intermediate Accounting 7th Edition Spiceland, Sepe, Nelson
, ,,, ,,,
,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
, Fullfile at http://testbankscafe.eu/Test-Bank-for-Intermediate-Accounting-7th-Edition-Spiceland,-Sepe,-Nelson
Test Bank
,,,,,,,, for Intermediate Accounting 7th Edition Spiceland, Sepe, Nelson
, ,,, ,,,
,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
Chapter 0 , , , , , , , ,
2Review of the Accounting Pro
, ,,,,,,,, ,, ,,, ,, , ,,,,,,,, ,,,,,,,,
cess
True , , , , , , , , / , , , , , ,, , False , , , , , , , , Questions
1. Owners' equity canbe expressed asassets minus liabilities. ,, ,, , ,,,, ,,, , ,,, ,,,,,,
True False
2. Debits ,, ,,,,,, increase ,, , ,, ,, , asset , ,, , ,, , , accounts , ,, , ,, , , and , ,,,, ,,, decrease ,,,,,,,, liability ,, , ,, , ,, accounts.
True False
3. Balance sheet accounts are referred , ,,,, ,,, , , ,, , ,, , , ,,, ,, ,, , ,, ,, ,, , ,,,, ,,,, to ,, , ,, , ,, as ,,,,,,,, temporary , ,, , ,, , , accounts , ,, , ,, , , because ,,,,,,,,
their balances are always changing.
, ,, ,, ,, , , ,,,,,,,, ,,,,,,,,
True False
4. After an unadjusted trial balance is prepared, the next step in the acc
, ,,, ,,, , , ,,, ,,, , ,,, ,,, ,, ,, ,, ,,, , ,, ,,, ,,, , ,,, ,,, , , ,,, ,,, , , ,,, ,,, , , ,,, ,,, , , ,,, ,,, , , ,,, ,,, , , ,,, ,,, ,
ountingp rocessing cycle is the preparation of financial statements.
, ,,,,,,,, ,,,, ,,,, ,,,,,,,, , ,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
True False
5. Adjusting journal entries are required to comply with the realization and m
, ,, ,,, ,, ,, ,, ,,, , , ,, ,,, ,, , ,,, ,,, , ,,, ,, ,,, , ,,, ,, ,, ,, ,,, ,,, ,, ,, ,,, , , ,,, ,,, , ,, ,,, ,, , ,,, ,,, ,,
atchingp rinciples. ,
True False
6. Accruals occur when the cash flow precedes either revenue or expense recog
,,, ,, ,,, ,,, ,, ,,, ,,,,, ,,, ,, , ,, ,, , ,,,,, ,,, , ,, ,,, ,, ,, ,, ,,, , ,,,,,,,, ,, , , , , ,, , ,,, ,, ,, ,, ,, , ,, ,
nition.
True False
7. The adjusted trial balance contains only permanent accounts.
,,,, ,,,, ,, ,, ,,, , , , , ,, , , , ,, ,, ,,, , ,,, ,,,,, ,,,,,,,, ,, ,,,,, ,
True False
8. The income statement summarizes the operating activity of a firm at a
,,,, ,,,, ,,,,, ,,, ,,,,,,,, , ,, ,, , ,, , , ,, , , ,, , ,,,,, ,, ,,,,,,,, ,,,,,,,, , , ,, , , ,, , , ,, , , ,, ,,,, ,,,, , , ,, , , ,,
particularp oint in time. , ,,,,,,,, ,,,,,,,,
True False
, Fullfile at http://testbankscafe.eu/Test-Bank-for-Intermediate-Accounting-7th-Edition-Spiceland,-Sepe,-Nelson
Test Bank,,,,,,,,for Intermediate Accounting 7th Edition Spiceland, Sepe, Nelson
, ,,, ,,,
,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
9. The balance sheet can be considered a change or flow statement.
, ,, , ,, ,, , , , ,, , , , , ,, , ,, ,, , ,,,,,, , , , ,, , , , , , , , ,, , , , ,, ,,,,,, , ,, ,,, ,, , ,, , ,, , , ,, ,, ,,, ,
True False
10. The statement of cash flows summarizes
, ,, ,,, ,, ,, ,, ,, ,, ,, ,,, ,,, ,,,, ,,, , , ,,, ,,,, ,,, ,, ,, , transactions , , , , , , , , that , ,,,, ,,, caused ,,,,,, ,,
cash to changed uring a reporting period.
,,,, ,,,, ,, ,, ,, ,, , ,,,,,,,, ,,,,,,,, ,,,,,,,,
True False
11. The , ,, ,,, ,, statement of shareholders' equity discloses ,,, ,,,, , , ,,, ,,,, ,,,,,,,, , ,,, ,,,, ,,,, ,,, , the , , ,, , , ,, changes ,,, ,,,, , in ,,,,,,,,
the , ,, , ,, , , temporary shareholders' equity accounts. , ,,,,,,,, ,,,,,,,,
True False
12. The post-closing trial balance contains only permanent accounts.
,,,,,,,, , , ,, ,, , , , , ,, , , , , , ,, , ,, ,, ,,,,,,,, , ,,,,,,, , , , , , ,, ,
True False
13. The closing process brings all temporary accounts to
,,,,,,,, ,, ,,,,, , , ,, , ,, ,, , ,, , ,, , , ,,, ,,,, , ,,,,,,,, , ,, , ,, , , , ,, , ,, , , a , ,, ,,, ,, zero , ,, , ,, , , balance ,, ,, ,, ,, a
nd updates thebalance in the retained earnings account.
,,,, ,,,, , ,,,, ,,, , ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,, ,,
True False
14. A reversing entry at the beginning of a period for salaries would include
,, ,, ,, , , , ,,,,,, , , ,,,,, ,, ,,,,,,,, ,, ,,,,, , , , ,, , , ,, ,,,,,,,, ,, , , , ,, , , ,,,,,, , ,,,,,,,, , ,, ,, ,, , ,,,, ,,,, ,, ,,
a debit to salaries expense.
,,,, , , ,, ,, ,, ,,,,,,,, , ,,,,,,,,
True False
15. The sale of merchandise on account would be recorded in a sales journal.
,,,, ,,,, ,,,,,,,, ,,,,,,,, , ,, , , , ,, ,,, ,,,,, ,,,,,,,, , ,, , , , ,, ,,,,, ,,, ,, , , , ,, , , ,, , , , ,, , ,, ,, ,, , , ,, ,, , ,,
True False
16. The payment of cash to a supplier would be recorded in a purchases journal.
,,,, ,,,, ,,,,,,,, ,,,,,,,, , ,, , , ,, , , ,, ,,, ,, , , ,, , , ,, ,,,,,,,, ,, , , , ,, , ,, ,,,,, , , , ,, , , , , , , , , ,, , , ,, , , , ,, , , ,,,,, ,,
True False
Multiple Choice Questions , , , ,, , ,, ,,,,,,,,
, Fullfile at http://testbankscafe.eu/Test-Bank-for-Intermediate-Accounting-7th-Edition-Spiceland,-Sepe,-Nelson
Test Bank
,,,,,,,, for Intermediate Accounting 7th Edition Spiceland, Sepe, Nelson
, ,,, ,,,
,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
17. The ,,, ,,,,, accounting equation can be , , ,, ,, , , , ,, , , , ,, , , , ,, , , , ,,,,, ,,, stated as: , , , , ,, , ,
A. A +L - ,,,,,,,, , ,,,,,,,,
OE =0. ,,,,,,,, ,,,,,,,, ,
B. A - ,,,,,,,,
L +OE =0.
,,,,,,,, ,,,,,,,, , ,,,,,,,, ,
C. -A +L - ,,,,,,,, , ,,,,,,,,
OE =0. ,,,,,,,, ,,,,,,,, ,
D. A - L - ,,,,,,,, ,,,,,,,, ,,,,,,,,
OE =0. ,,,,,,,, ,,,,,,,, ,
18. Examples of external transactions include all of the following except: ,,,,,,,, ,,,, ,,,, ,,,,,, ,, ,,,,,,,, ,,,,,,,, , ,,,,,,, ,,,,,,,, ,, ,,, ,, , ,,,,,,,,
A. Paying employee ,,,,,, ,,
ssalaries. ,
B. Purchasing , ,, , ,
equipment
,, ,
.
C. Depreciating ,
equipment.
D. Collecting , ,,, ,,, ,
areceivable ,
.
19. Examples of internal transactions include all of the following except: ,,,,,,,, ,,,,,,,, ,,,,,,,, ,, ,, ,,, , ,,,,,,, , ,,,,,,,, ,,,,,,,, ,,,,, ,,, ,,,,,,,,
A. Writing off an uncol , , , , , , , , , , , , , , , , , , , , , , , ,
lectible account. ,
B. Recording the expiration of prep ,,, ,,, ,, ,, , ,, ,, , ,,, ,,,,, ,, ,,, ,, ,
aidi nsurance. ,
C. Recording unpai ,,,,,,,,
dwages. ,
D. Paying wages to co , , , , , , , , , , , , , , , , , , , , , , , ,
mpany employees. ,
20. XYZ Corporation receives $100,000 from investors for issuing them share
,,,,,,,, ,, ,, , ,, , ,,,,,,,, ,,,, ,,,, ,, , ,, , ,, ,,,,,,,, ,, ,, ,, ,, , ,, , ,, ,, ,,,,,,,,
s of its stock.XYZ's journal entry to record this transaction would include a:
,,, ,,,, , ,,, ,,,,, ,,,, ,,,, , ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,, ,,,,, ,,, ,,,,,
A. Debit to inv ,, ,, ,,, , , ,, ,, ,, ,
estments.
B. Credit to retained ,,,,, ,,,,,, ,
earnings.
C. Credit to capital ,,,, ,,,,,, ,
stock.
D. Creditto , ,
revenue.
Test Bank
,,,,,,,, for Intermediate Accounting 7th Edition Spiceland, Sepe, Nelson
, ,,, ,,,
,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
, Fullfile at http://testbankscafe.eu/Test-Bank-for-Intermediate-Accounting-7th-Edition-Spiceland,-Sepe,-Nelson
Test Bank
,,,,,,,, for Intermediate Accounting 7th Edition Spiceland, Sepe, Nelson
, ,,, ,,,
,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
Chapter 0 , , , , , , , ,
2Review of the Accounting Pro
, ,,,,,,,, ,, ,,, ,, , ,,,,,,,, ,,,,,,,,
cess
True , , , , , , , , / , , , , , ,, , False , , , , , , , , Questions
1. Owners' equity canbe expressed asassets minus liabilities. ,, ,, , ,,,, ,,, , ,,, ,,,,,,
True False
2. Debits ,, ,,,,,, increase ,, , ,, ,, , asset , ,, , ,, , , accounts , ,, , ,, , , and , ,,,, ,,, decrease ,,,,,,,, liability ,, , ,, , ,, accounts.
True False
3. Balance sheet accounts are referred , ,,,, ,,, , , ,, , ,, , , ,,, ,, ,, , ,, ,, ,, , ,,,, ,,,, to ,, , ,, , ,, as ,,,,,,,, temporary , ,, , ,, , , accounts , ,, , ,, , , because ,,,,,,,,
their balances are always changing.
, ,, ,, ,, , , ,,,,,,,, ,,,,,,,,
True False
4. After an unadjusted trial balance is prepared, the next step in the acc
, ,,, ,,, , , ,,, ,,, , ,,, ,,, ,, ,, ,, ,,, , ,, ,,, ,,, , ,,, ,,, , , ,,, ,,, , , ,,, ,,, , , ,,, ,,, , , ,,, ,,, , , ,,, ,,, , , ,,, ,,, ,
ountingp rocessing cycle is the preparation of financial statements.
, ,,,,,,,, ,,,, ,,,, ,,,,,,,, , ,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
True False
5. Adjusting journal entries are required to comply with the realization and m
, ,, ,,, ,, ,, ,, ,,, , , ,, ,,, ,, , ,,, ,,, , ,,, ,, ,,, , ,,, ,, ,, ,, ,,, ,,, ,, ,, ,,, , , ,,, ,,, , ,, ,,, ,, , ,,, ,,, ,,
atchingp rinciples. ,
True False
6. Accruals occur when the cash flow precedes either revenue or expense recog
,,, ,, ,,, ,,, ,, ,,, ,,,,, ,,, ,, , ,, ,, , ,,,,, ,,, , ,, ,,, ,, ,, ,, ,,, , ,,,,,,,, ,, , , , , ,, , ,,, ,, ,, ,, ,, , ,, ,
nition.
True False
7. The adjusted trial balance contains only permanent accounts.
,,,, ,,,, ,, ,, ,,, , , , , ,, , , , ,, ,, ,,, , ,,, ,,,,, ,,,,,,,, ,, ,,,,, ,
True False
8. The income statement summarizes the operating activity of a firm at a
,,,, ,,,, ,,,,, ,,, ,,,,,,,, , ,, ,, , ,, , , ,, , , ,, , ,,,,, ,, ,,,,,,,, ,,,,,,,, , , ,, , , ,, , , ,, , , ,, ,,,, ,,,, , , ,, , , ,,
particularp oint in time. , ,,,,,,,, ,,,,,,,,
True False
, Fullfile at http://testbankscafe.eu/Test-Bank-for-Intermediate-Accounting-7th-Edition-Spiceland,-Sepe,-Nelson
Test Bank,,,,,,,,for Intermediate Accounting 7th Edition Spiceland, Sepe, Nelson
, ,,, ,,,
,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
9. The balance sheet can be considered a change or flow statement.
, ,, , ,, ,, , , , ,, , , , , ,, , ,, ,, , ,,,,,, , , , ,, , , , , , , , ,, , , , ,, ,,,,,, , ,, ,,, ,, , ,, , ,, , , ,, ,, ,,, ,
True False
10. The statement of cash flows summarizes
, ,, ,,, ,, ,, ,, ,, ,, ,, ,,, ,,, ,,,, ,,, , , ,,, ,,,, ,,, ,, ,, , transactions , , , , , , , , that , ,,,, ,,, caused ,,,,,, ,,
cash to changed uring a reporting period.
,,,, ,,,, ,, ,, ,, ,, , ,,,,,,,, ,,,,,,,, ,,,,,,,,
True False
11. The , ,, ,,, ,, statement of shareholders' equity discloses ,,, ,,,, , , ,,, ,,,, ,,,,,,,, , ,,, ,,,, ,,,, ,,, , the , , ,, , , ,, changes ,,, ,,,, , in ,,,,,,,,
the , ,, , ,, , , temporary shareholders' equity accounts. , ,,,,,,,, ,,,,,,,,
True False
12. The post-closing trial balance contains only permanent accounts.
,,,,,,,, , , ,, ,, , , , , ,, , , , , , ,, , ,, ,, ,,,,,,,, , ,,,,,,, , , , , , ,, ,
True False
13. The closing process brings all temporary accounts to
,,,,,,,, ,, ,,,,, , , ,, , ,, ,, , ,, , ,, , , ,,, ,,,, , ,,,,,,,, , ,, , ,, , , , ,, , ,, , , a , ,, ,,, ,, zero , ,, , ,, , , balance ,, ,, ,, ,, a
nd updates thebalance in the retained earnings account.
,,,, ,,,, , ,,,, ,,, , ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,, ,,
True False
14. A reversing entry at the beginning of a period for salaries would include
,, ,, ,, , , , ,,,,,, , , ,,,,, ,, ,,,,,,,, ,, ,,,,, , , , ,, , , ,, ,,,,,,,, ,, , , , ,, , , ,,,,,, , ,,,,,,,, , ,, ,, ,, , ,,,, ,,,, ,, ,,
a debit to salaries expense.
,,,, , , ,, ,, ,, ,,,,,,,, , ,,,,,,,,
True False
15. The sale of merchandise on account would be recorded in a sales journal.
,,,, ,,,, ,,,,,,,, ,,,,,,,, , ,, , , , ,, ,,, ,,,,, ,,,,,,,, , ,, , , , ,, ,,,,, ,,, ,, , , , ,, , , ,, , , , ,, , ,, ,, ,, , , ,, ,, , ,,
True False
16. The payment of cash to a supplier would be recorded in a purchases journal.
,,,, ,,,, ,,,,,,,, ,,,,,,,, , ,, , , ,, , , ,, ,,, ,, , , ,, , , ,, ,,,,,,,, ,, , , , ,, , ,, ,,,,, , , , ,, , , , , , , , , ,, , , ,, , , , ,, , , ,,,,, ,,
True False
Multiple Choice Questions , , , ,, , ,, ,,,,,,,,
, Fullfile at http://testbankscafe.eu/Test-Bank-for-Intermediate-Accounting-7th-Edition-Spiceland,-Sepe,-Nelson
Test Bank
,,,,,,,, for Intermediate Accounting 7th Edition Spiceland, Sepe, Nelson
, ,,, ,,,
,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,,
17. The ,,, ,,,,, accounting equation can be , , ,, ,, , , , ,, , , , ,, , , , ,, , , , ,,,,, ,,, stated as: , , , , ,, , ,
A. A +L - ,,,,,,,, , ,,,,,,,,
OE =0. ,,,,,,,, ,,,,,,,, ,
B. A - ,,,,,,,,
L +OE =0.
,,,,,,,, ,,,,,,,, , ,,,,,,,, ,
C. -A +L - ,,,,,,,, , ,,,,,,,,
OE =0. ,,,,,,,, ,,,,,,,, ,
D. A - L - ,,,,,,,, ,,,,,,,, ,,,,,,,,
OE =0. ,,,,,,,, ,,,,,,,, ,
18. Examples of external transactions include all of the following except: ,,,,,,,, ,,,, ,,,, ,,,,,, ,, ,,,,,,,, ,,,,,,,, , ,,,,,,, ,,,,,,,, ,, ,,, ,, , ,,,,,,,,
A. Paying employee ,,,,,, ,,
ssalaries. ,
B. Purchasing , ,, , ,
equipment
,, ,
.
C. Depreciating ,
equipment.
D. Collecting , ,,, ,,, ,
areceivable ,
.
19. Examples of internal transactions include all of the following except: ,,,,,,,, ,,,,,,,, ,,,,,,,, ,, ,, ,,, , ,,,,,,, , ,,,,,,,, ,,,,,,,, ,,,,, ,,, ,,,,,,,,
A. Writing off an uncol , , , , , , , , , , , , , , , , , , , , , , , ,
lectible account. ,
B. Recording the expiration of prep ,,, ,,, ,, ,, , ,, ,, , ,,, ,,,,, ,, ,,, ,, ,
aidi nsurance. ,
C. Recording unpai ,,,,,,,,
dwages. ,
D. Paying wages to co , , , , , , , , , , , , , , , , , , , , , , , ,
mpany employees. ,
20. XYZ Corporation receives $100,000 from investors for issuing them share
,,,,,,,, ,, ,, , ,, , ,,,,,,,, ,,,, ,,,, ,, , ,, , ,, ,,,,,,,, ,, ,, ,, ,, , ,, , ,, ,, ,,,,,,,,
s of its stock.XYZ's journal entry to record this transaction would include a:
,,, ,,,, , ,,, ,,,,, ,,,, ,,,, , ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,,,,,,, ,,, ,,,,, ,,, ,,,,,
A. Debit to inv ,, ,, ,,, , , ,, ,, ,, ,
estments.
B. Credit to retained ,,,,, ,,,,,, ,
earnings.
C. Credit to capital ,,,, ,,,,,, ,
stock.
D. Creditto , ,
revenue.
