TEST BANK FOR ACCOUNTING 26TH EDITION CARL S. WARREN, JAMES M. REEVE, JONATHAN DUCHAC| with 100% VERIFIED SOLUTIONS GRADED A+

,CHAPTER 2: ANALYZING TRANSACTIONS ju j u ju




1. Accounts are records of increases and decreases in individual financial statement items.
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a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering LEARNI ju ju




NG OBJECTIVES: ju ACCT.WARD.16.02-01 - 02- ju ju




01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 -
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Purpose
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ACCT.ACBSP.APC.02 - GAAP ju ju



ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju




2. A chart of accounts is a listing of accounts that make up the journal.
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a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering LEARNI ju ju




NG OBJECTIVES: ju ACCT.WARD.16.02-01 - 02- ju ju




01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 -
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Purpose
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ACCT.ACBSP.APC.02 - GAAP ju ju



ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju




3. The chart of accounts should be the same for each business.
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a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ju ju




ING OBJECTIVES: ju ACCT.WARD.16.02-01 - 02- ju ju




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
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GAAP
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ACCT.ACBSP.APC.03 - Business Forms ju ju ju


ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju

,Chapter 2: Analyzing Transactions


4. Accounts payable are accounts that you expect will be paid to you.
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a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ju ju




ING OBJECTIVES:
ju ACCT.WARD.16.02-01 - 02- ju ju




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
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GAAP
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ACCT.ACBSP.APC.04 - Cash vs. Accrual ju ju ju ju



ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju




5. Consuming goods and services in the process of generating revenues results in expenses.
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a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering LEARN ju ju




ING OBJECTIVES:
ju ACCT.WARD.16.02-01 - 02- ju ju




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
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GAAP
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ACCT.ACBSP.APC.06 - Recording Transactions ju ju ju



ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju




6. Prepaid expenses are an example of an expense.
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a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ju ju




ING OBJECTIVES:
ju ACCT.WARD.16.02-01 - 02- ju ju




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
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GAAP
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ACCT.ACBSP.APC.04 - Cash vs. Accrual ju ju ju ju


ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju

, Chapter 2: Analyzing Transactions


7. The Unearned Revenues account is an example of a liability.
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a. True
b. False

ANSWER: True
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ju ju




ING OBJECTIVES:
ju ACCT.WARD.16.02-01 - 02- ju ju




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
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GAAP
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ACCT.ACBSP.APC.04 - Cash vs. Accrual ju ju ju ju



ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju




8. The Drawings account is an example of an expense.
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a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ju ju




ING OBJECTIVES:
ju ACCT.WARD.16.02-01 - 02- ju ju




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
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GAAP
ju



ACCT.ACBSP.APC.06 - Recording Transactions ju ju ju



ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju




9. Accounts in the ledger are usually maintained in alphabetical order.
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a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering LEARN ju ju




ING OBJECTIVES:
ju ACCT.WARD.16.02-01 - 02- ju ju




01ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 -
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GAAP
ju



ACCT.ACBSP.APC.06 - Recording Transactions ju ju ju


ACCT.AICPA.FN.03 - ju



MeasurementBUSPROG: Analytic ju ju ju