,DOWNLOAD THE Test Bank for Financial Accounting 5th Edition Spiceland
g g g g g g g g g
Financialg Accounting,g 5eg (Spiceland)
Chapterg 2 Theg Accountingg Cycle:g Duringg theg Period
1) Externalg transactionsg aregtransactionsg theg companygconductsg withg ag separateg economicg entity,g s
uchg asg sellingg productsg tog ag customer,g purchasingg suppliesg fromg ag vendor,g payingg salariesg tog ang e
mployee,g and g borrowingg moneyg fromg ag bank.
2) Internalg transactionsg areg eventsg thatgaffect gtheg financialg positiong of gthegcompanygbut g dog not g i
ncludeg ang exchangeg withg ag separateg economicg entity.
3) A g list g of g allg account g namesg used g tog record g transactionsg of g ag companyg isg referred g tog asg ag T-
g account.
4) A g sourceg document g providesg informationg related g tog externalg transactions.
5) Afterg recordingg eachg transaction,g totalg assetsgmust gequalg totalgliabilitiesg plusg stockholders'ge
quity.
6) If g ag transactiong causesg totalg assetsg ofgthegcompanygtogincreaseg byg $2,000,g theng liabilitiesg plusg s
tockholders'g equityg alsog increasesg byg $2,000.
7) If g ag transactiong causesg totalg assetsg ofgthegcompanygtogincreaseg byg $5,000g and g totalg liabilitiesg tog i
ncreaseg byg $3,000,g theng stockholders'g equityg increasesg byg $8,000.
8) Borrowingg cashg fromg theg bankg causesg assetsg tog increaseg and g liabilitiesg tog increase.
9) Purchasingg equipment g usingg cashg causesg assetsg tog increase.
10) Providingg servicesg tog customersg forg cashg causesg stockholders'g equityg tog increase.
11) Payingg employees'g salariesg forg theg current g monthg causesg nog changeg tog stockholders'g equity.
12) Payingg dividendsg tog itsg stockholdersg causesg ag company'sg stockholders'g equityg tog decrease.
13) Sellingg commong stockg forg cashg causesg assetsg tog increaseg and g stockholders'g equityg tog decrease.
14) Purchasingg officeg suppliesg ong account g causesg assetsg tog increaseg and g liabilitiesg tog increase.
15) Providingg servicesg tog customersg ong account g causesg assetsgtog increaseg andgstockholders'gequityg t
og increase.
16) Receivingg cashg ing advanceg fromg agcustomerg forg servicesg togbegprovidedg ingthegfuturegcausesg a
ssetsg tog increaseg and g stockholders'g equityg tog increase.
17) Payingg forg oneg yearg of grentg ingadvanceg causesg onegasset gtogincreaseg and ganotherg asset gtogd
ecrease,g sog thereg isg nog effect g ong theg accountingg equation.
1
Copyright g ©g 2019 g McGraw-Hillg Education.g Allg rightsg reserved.
No g reproduction g orgdistribution g without gthegpriorg written g consent g of gMcGraw-Hillg Education.
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g g g g g g g g g
18) Purchasingg suppliesg ong account g increasesg theg balanceg of g theg Accountsg Receivableg account.
19) Amountsg owed g fromg customersg areg recorded g ing theg Accountsg Receivableg account.
20) Theg twog componentsg of g stockholders'g equityg areg Debitsg and g Credits.
21) Revenuesg haveg theg effect g of g increasingg retained g earnings.
22) Expensesg haveg theg effect g of g decreasingg retained g earnings.
23) Receivingg cashg ing advanceg fromg customersg increasesg theg Serviceg Revenueg account.
24) Deferred g Revenueg isg ag liabilityg account.
25) Liabilityg accountsg increaseg withg ag debit g and g decreaseg withg ag credit.
26) Liabilityg accountsg increaseg withg ag credit g and g decreaseg withg ag debit.
27) Commong Stockg increasesg withg ag credit g and g decreasesg withg ag debit.
28) Revenueg accountsg increaseg withg ag debit g and g decreaseg withg ag credit.
29) Expenseg accountsg increaseg withg ag debit g and g decreaseg withg ag credit.
30) Theg Dividendsg account g increasesg withg ag credit g and g decreasesg withg ag debit.
31) A g debit g tog ang account g balanceg alwaysg resultsg ing theg balanceg increasing.
32) A g credit g tog ang account g balanceg alwaysg resultsg ing theg balanceg decreasing.
33) A g journalg providesg ag chronologicalg record g of g allg transactionsg affectingg ag firm.
34) Forg eachg transaction,g thereg must g beg at g least g oneg debit g amount g and g oneg credit g amount.
35) Forg eachg transaction,g theg totalg debit g amountsg must g equalg theg totalg credit g amounts.
36) Sellingg commong stockg forg cashg isg recorded g withg ag debit g tog commong stock.
37) Borrowingg cashg fromg theg bankg isg recorded g withg ag debit g tog cash.
38) Purchasingg officeg suppliesg isg recorded g withg ag credit g tog officeg supplies.
39) Payingg employees'g salariesg forg theg current g period g isg recordedg withg ag debit g tog Salariesg
Expense.
40) Providingg servicesg tog customersg isg recorded g withg ag debit g tog Serviceg Revenue.
2
Copyright g ©g 2019 g McGraw-Hillg Education.g Allg rightsg reserved.
No g reproduction g orgdistribution g without gthegpriorg written g consent g of gMcGraw-Hillg Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting 5th Edition Spiceland
g g g g g g g g g
41) Theg generalg ledgerg includesg allg accountsg used g tog record g theg company'sg transactions.
42) Theg processg of g transferringg theg debit gandgcredit ginformationg fromg thegjournalg togindividualga
ccountsg ing theg generalg ledgerg isg called g journalizing.
43) Afterg postingg transactionsg togtheggeneralg ledgergaccounts,g thegsumg ofg thegaccountsg withgdebitgb
alancesg should g equalg theg sumg of g theg accountsg withg credit g balances.
44) A g trialg balanceg isg ag list g of gallg accountsgand gtheirg balancesg at gag particularg date,gshowinggthat g a
ssetsg equalg liabilities.
45) If g totalg debitsg equalg totalg creditsg ing theg trialg balance,g theng allg balancesg areg correct.
46) Whichg of g theg followingg isg not g part g of g measuringg externalg transactions?
A) Usingg sourceg documentsg tog analyzeg accountsg affected.
B) Recordingg transactions.
C) Makingg paymentsg ong allg amountsg owed.
D) Analyzingg transactionsg forg theirg effect g ong theg accountingg equation.
47) Externalg eventsg includeg allg of g theg followingg except:
A) Payingg rent.
B) Purchasingg equipment.
C) Usingg officeg supplies.
D) Collectingg ang account g receivable.
48) Theg fullg set g of gproceduresg usedgtogaccomplishg thegmeasurement/communicationg processg of g f
inancialg accountingg isg referred g tog asg the:
A) Trialg balance.
B) Accountingg cycle.
C) Chart g of g accounts.
D) Generalg ledger.
49) Whichg stepg ing theg processg of g measuringg externalg transactionsg involvesg assessingg theg equalityg
of g totalg debitsg and g totalg creditsg forg theg period?
A) Useg sourceg documentsg tog determineg accountsg affected g byg theg transaction.
B) Prepareg ag trialg balance.
C) Analyzeg theg impact g of g theg transactiong ong theg accountingg equation.
D) Post g theg transactiong tog theg T-account g ing theg generalg ledger.
50) Whichg stepg ing theg processg ofg measuringg externalg transactionsg involvesg determiningg theg effect g
ong assets,g liabilities,g and g stockholders'g equity?
A) Useg sourceg documentsg tog determineg accountsg affected g byg theg transaction.
B) Prepareg ag trialg balance.
C) Analyzeg theg impact g of g theg transactiong ong theg accountingg equation.
D) Post g theg transactiong tog theg T-account g ing theg generalg ledger.
3
Copyright g ©g 2019 g McGraw-Hillg Education.g Allg rightsg reserved.
No g reproduction g orgdistribution g without gthegpriorg written g consent g of gMcGraw-Hillg Education.
mynursytest.store
g g g g g g g g g
Financialg Accounting,g 5eg (Spiceland)
Chapterg 2 Theg Accountingg Cycle:g Duringg theg Period
1) Externalg transactionsg aregtransactionsg theg companygconductsg withg ag separateg economicg entity,g s
uchg asg sellingg productsg tog ag customer,g purchasingg suppliesg fromg ag vendor,g payingg salariesg tog ang e
mployee,g and g borrowingg moneyg fromg ag bank.
2) Internalg transactionsg areg eventsg thatgaffect gtheg financialg positiong of gthegcompanygbut g dog not g i
ncludeg ang exchangeg withg ag separateg economicg entity.
3) A g list g of g allg account g namesg used g tog record g transactionsg of g ag companyg isg referred g tog asg ag T-
g account.
4) A g sourceg document g providesg informationg related g tog externalg transactions.
5) Afterg recordingg eachg transaction,g totalg assetsgmust gequalg totalgliabilitiesg plusg stockholders'ge
quity.
6) If g ag transactiong causesg totalg assetsg ofgthegcompanygtogincreaseg byg $2,000,g theng liabilitiesg plusg s
tockholders'g equityg alsog increasesg byg $2,000.
7) If g ag transactiong causesg totalg assetsg ofgthegcompanygtogincreaseg byg $5,000g and g totalg liabilitiesg tog i
ncreaseg byg $3,000,g theng stockholders'g equityg increasesg byg $8,000.
8) Borrowingg cashg fromg theg bankg causesg assetsg tog increaseg and g liabilitiesg tog increase.
9) Purchasingg equipment g usingg cashg causesg assetsg tog increase.
10) Providingg servicesg tog customersg forg cashg causesg stockholders'g equityg tog increase.
11) Payingg employees'g salariesg forg theg current g monthg causesg nog changeg tog stockholders'g equity.
12) Payingg dividendsg tog itsg stockholdersg causesg ag company'sg stockholders'g equityg tog decrease.
13) Sellingg commong stockg forg cashg causesg assetsg tog increaseg and g stockholders'g equityg tog decrease.
14) Purchasingg officeg suppliesg ong account g causesg assetsg tog increaseg and g liabilitiesg tog increase.
15) Providingg servicesg tog customersg ong account g causesg assetsgtog increaseg andgstockholders'gequityg t
og increase.
16) Receivingg cashg ing advanceg fromg agcustomerg forg servicesg togbegprovidedg ingthegfuturegcausesg a
ssetsg tog increaseg and g stockholders'g equityg tog increase.
17) Payingg forg oneg yearg of grentg ingadvanceg causesg onegasset gtogincreaseg and ganotherg asset gtogd
ecrease,g sog thereg isg nog effect g ong theg accountingg equation.
1
Copyright g ©g 2019 g McGraw-Hillg Education.g Allg rightsg reserved.
No g reproduction g orgdistribution g without gthegpriorg written g consent g of gMcGraw-Hillg Education.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Accounting 5th Edition Spiceland
g g g g g g g g g
18) Purchasingg suppliesg ong account g increasesg theg balanceg of g theg Accountsg Receivableg account.
19) Amountsg owed g fromg customersg areg recorded g ing theg Accountsg Receivableg account.
20) Theg twog componentsg of g stockholders'g equityg areg Debitsg and g Credits.
21) Revenuesg haveg theg effect g of g increasingg retained g earnings.
22) Expensesg haveg theg effect g of g decreasingg retained g earnings.
23) Receivingg cashg ing advanceg fromg customersg increasesg theg Serviceg Revenueg account.
24) Deferred g Revenueg isg ag liabilityg account.
25) Liabilityg accountsg increaseg withg ag debit g and g decreaseg withg ag credit.
26) Liabilityg accountsg increaseg withg ag credit g and g decreaseg withg ag debit.
27) Commong Stockg increasesg withg ag credit g and g decreasesg withg ag debit.
28) Revenueg accountsg increaseg withg ag debit g and g decreaseg withg ag credit.
29) Expenseg accountsg increaseg withg ag debit g and g decreaseg withg ag credit.
30) Theg Dividendsg account g increasesg withg ag credit g and g decreasesg withg ag debit.
31) A g debit g tog ang account g balanceg alwaysg resultsg ing theg balanceg increasing.
32) A g credit g tog ang account g balanceg alwaysg resultsg ing theg balanceg decreasing.
33) A g journalg providesg ag chronologicalg record g of g allg transactionsg affectingg ag firm.
34) Forg eachg transaction,g thereg must g beg at g least g oneg debit g amount g and g oneg credit g amount.
35) Forg eachg transaction,g theg totalg debit g amountsg must g equalg theg totalg credit g amounts.
36) Sellingg commong stockg forg cashg isg recorded g withg ag debit g tog commong stock.
37) Borrowingg cashg fromg theg bankg isg recorded g withg ag debit g tog cash.
38) Purchasingg officeg suppliesg isg recorded g withg ag credit g tog officeg supplies.
39) Payingg employees'g salariesg forg theg current g period g isg recordedg withg ag debit g tog Salariesg
Expense.
40) Providingg servicesg tog customersg isg recorded g withg ag debit g tog Serviceg Revenue.
2
Copyright g ©g 2019 g McGraw-Hillg Education.g Allg rightsg reserved.
No g reproduction g orgdistribution g without gthegpriorg written g consent g of gMcGraw-Hillg Education.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting 5th Edition Spiceland
g g g g g g g g g
41) Theg generalg ledgerg includesg allg accountsg used g tog record g theg company'sg transactions.
42) Theg processg of g transferringg theg debit gandgcredit ginformationg fromg thegjournalg togindividualga
ccountsg ing theg generalg ledgerg isg called g journalizing.
43) Afterg postingg transactionsg togtheggeneralg ledgergaccounts,g thegsumg ofg thegaccountsg withgdebitgb
alancesg should g equalg theg sumg of g theg accountsg withg credit g balances.
44) A g trialg balanceg isg ag list g of gallg accountsgand gtheirg balancesg at gag particularg date,gshowinggthat g a
ssetsg equalg liabilities.
45) If g totalg debitsg equalg totalg creditsg ing theg trialg balance,g theng allg balancesg areg correct.
46) Whichg of g theg followingg isg not g part g of g measuringg externalg transactions?
A) Usingg sourceg documentsg tog analyzeg accountsg affected.
B) Recordingg transactions.
C) Makingg paymentsg ong allg amountsg owed.
D) Analyzingg transactionsg forg theirg effect g ong theg accountingg equation.
47) Externalg eventsg includeg allg of g theg followingg except:
A) Payingg rent.
B) Purchasingg equipment.
C) Usingg officeg supplies.
D) Collectingg ang account g receivable.
48) Theg fullg set g of gproceduresg usedgtogaccomplishg thegmeasurement/communicationg processg of g f
inancialg accountingg isg referred g tog asg the:
A) Trialg balance.
B) Accountingg cycle.
C) Chart g of g accounts.
D) Generalg ledger.
49) Whichg stepg ing theg processg of g measuringg externalg transactionsg involvesg assessingg theg equalityg
of g totalg debitsg and g totalg creditsg forg theg period?
A) Useg sourceg documentsg tog determineg accountsg affected g byg theg transaction.
B) Prepareg ag trialg balance.
C) Analyzeg theg impact g of g theg transactiong ong theg accountingg equation.
D) Post g theg transactiong tog theg T-account g ing theg generalg ledger.
50) Whichg stepg ing theg processg ofg measuringg externalg transactionsg involvesg determiningg theg effect g
ong assets,g liabilities,g and g stockholders'g equity?
A) Useg sourceg documentsg tog determineg accountsg affected g byg theg transaction.
B) Prepareg ag trialg balance.
C) Analyzeg theg impact g of g theg transactiong ong theg accountingg equation.
D) Post g theg transactiong tog theg T-account g ing theg generalg ledger.
3
Copyright g ©g 2019 g McGraw-Hillg Education.g Allg rightsg reserved.
No g reproduction g orgdistribution g without gthegpriorg written g consent g of gMcGraw-Hillg Education.
mynursytest.store
