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

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,Test Bank for Survey of Accounting, 4th Edition by Paul D.
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Kimmel, Jerry J. Weygandt, Jill E. Mitchell x@ x@ x@ x@ x@ x@




Survey of Accounting, 3e (Kimmel)
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Appendix D Double-Entry Accounting System
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1) A new account is opened for each transaction entered into by a busines
x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@


s firm. Answer: FALSE
x@ x@ x @


Diff: 1 x@


LO: 1x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




2) The recording process becomes more efficient and informative if all transactions are re
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corded in one account.
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Answer: FALSE x @ x


@Diff: 1 x@


LO: 1x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




3) An account consists of two parts: (1) a left or debit side and (2) a right or cr
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edit side. Answer: FALSE
x@ x@ x @


Diff: 1 x@


LO: 1x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




4) For a T- x@ x@


account, an account balance is the difference in total dollars between total debit am
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ounts and total credit amounts.
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Answer: TRUE x @ x@


Diff: 1 x@


LO: 1x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




2

,5) An account is often referred to as a T-
x@ x@ x@ x@ x@ x@ x@ x@


account because of the way it is constructed. Answer:
x@ x@ x@ x@ x@ x@ x@ x@ x @ TRUE
Diff: 1
x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




6) A debit to an account always indicates an increase in that ac
x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@


count. Answer: FALSE
x@ x @


Diff: 1
x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




7) If a revenue account is credited, the revenue account is incre
x@ x@ x@ x@ x@ x@ x@ x@ x@ x@


ased. Answer: TRUE
x@ x @


Diff: 1
x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




8) The normal balance of all accounts is a d
x@ x@ x@ x@ x@ x@ x@ x@


ebit. Answer: FALSE
x@ x @


Diff: 1
x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




9) Debit and credit can be interpreted to mean "bad" and "good", respect
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ively. Answer: FALSE
x@ x @


Diff: 1
x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




3

, 10) A credit means that an account has been increa
x@ x@ x@ x@ x@ x@ x@ x@


sed. Answer: FALSE
x@ x @


Diff: 1 x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




11) A decrease in a liability account is recorded by a
x@ x@ x@ x@ x@ x@ x@ x@ x@ x@


debit. Answer: TRUE
x@ x @


Diff: 1 x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




12) An increase in an asset is recorded by a d
x@ x@ x@ x@ x@ x@ x@ x@ x@


ebit. Answer: TRUE
x@ x @


Diff: 1 x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




13) The double- x@


entry system of accounting refers to the placement of a double line at the end of a colu
x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@


mn of figures.
x@ x@


Answer: FALSE x @ x


@Diff: 1 x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




14) A credit balance in a liability account indicates that an error in recording has oc
x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@ x@


curred. Answer: FALSE
x@ x @


Diff: 1 x@


LO: 1
x @ x @


Bloom: K x @ x @


AACSB / IMA: None / Reporting
x@ x@ x @ x @ x@ x@


AICPA: BB: None; FC: Reporting; PC: None Mi
x @ x@ x@ x@ x@ x@ x@


nutes: 1 x @




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