Test Bank for Intermediate Accounting 19th Edition By Donald Kieso, Jerry Weygandt, Terry Warfield, Laura Wiley

Test Bank for Intermediate
Accounting 19th Edition By
Donald Kieso, Jerry Weygandt,
Terry Warfield, Laura Wiley (All
Chapters 0-23, 100% Original
Verified, A+ Garde)


This is Original Test Bank for 19th
Edition with Chapter 0 to 23. All
other files in the market are not 19th
Edition, all selling old files with
edition number change only.

, CHAPTER 0

ACCOUNTING CYCLE REVIEW


TRUE-FALSE—Conceptual
1. Economic events that require recording in the financial statements are called accounting
transactions.

Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

2. Revenue increases stockholders’ equity and should be recorded whenever cash is received
from customers.

Ans: F, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Reporting, AICPA PC: None, IMA: Reporting

3. Collection on an account receivable will increase both cash and accounts receivable.

Ans: F, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

4. The payment of a liability decreases both cash and accounts payable.

Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA


5. If total assets are increased, there must be a corresponding increase in liabilities or a
decrease in stockholders’ equity.

Ans: F, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Reporting, AICPA PC: None, IMA: Reporting

6. A new account is opened for each transaction entered into by a business firm.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA


. (For Instructor Use Only)

,7. The recording process becomes more efficient and informative if all transactions are
recorded in one account.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

8. An account consists of two parts: (1) a left or debit side and (2) a right or credit side.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

9. For a T account, an account balance is the difference in total dollars between total debit
amounts and total credit amounts.

Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

10. An account is often referred to as a T-account because of the way it is constructed.

Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

11. A debit to an account always indicates an increase in that account.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

12. If a revenue account is credited, the revenue account is increased.

Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

13. The normal balance of all accounts is a debit.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

14. Debit and credit can be interpreted to mean “bad” and “good”, respectively.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA



. (For Instructor Use Only)

, 15. A credit means that an account has been increased.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

16. A decrease in a liability account is recorded by a debit.

Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

17. An increase in an asset is recorded by a debit.

Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

18. The double-entry system of accounting refers to the placement of a double line at the end of
a column of figures.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None,IMA: FSA

19. A credit balance in a liability account indicates that an error in recording has occurred.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

20. The normal balance of an asset is a credit.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
21. The normal balance of the dividend account is a credit.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Reporting, AICPA PC: None, IMA: Reporting

22. Assets are decreased with a credit.

Ans: T, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective,
AICPA FC: Measurement, AICPA PC: None, IMA: FSA

23. A debit means that an account has been decreased.


. (For Instructor Use Only)