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FinancialhAccounting,h5eh(Spiceland)
Chapterh2 ThehAccountinghCycle:hDuringhthehPeriod
1) Externalhtransactionsharehtransactionshthehcompanyhconductshwithhahseparateheconomichentity,hs
uchhashsellinghproductshtohahcustomer,hpurchasinghsupplieshfromhahvendor,hpayinghsalarieshtohanhe
mployee,handhborrowinghmoneyhfromhahbank.
2) Internalhtransactionshareheventshthathaffecththehfinancialhpositionhofhthehcompanyhbuthdohnothi
ncludehanhexchangehwithhahseparateheconomichentity.
3) AhlisthofhallhaccounthnameshusedhtohrecordhtransactionshofhahcompanyhishreferredhtohashahT-
haccount.
4) Ahsourcehdocumenthprovideshinformationhrelatedhtohexternalhtransactions.
5) Afterhrecordingheachhtransaction,htotalhassetshmusthequalhtotalhliabilitieshplushstockholders'he
quity.
6) Ifhahtransactionhcauseshtotalhassetshofhthehcompanyhtohincreasehbyh$2,000,hthenhliabilitieshplushs
tockholders'hequityhalsohincreaseshbyh$2,000.
7) Ifhahtransactionhcauseshtotalhassetshofhthehcompanyhtohincreasehbyh$5,000handhtotalhliabilitieshtohi
ncreasehbyh$3,000,hthenhstockholders'hequityhincreaseshbyh$8,000.
8) Borrowinghcashhfromhthehbankhcauseshassetshtohincreasehandhliabilitieshtohincrease.
9) Purchasinghequipmenthusinghcashhcauseshassetshtohincrease.
10) Providinghserviceshtohcustomershforhcashhcauseshstockholders'hequityhtohincrease.
11) Payinghemployees'hsalarieshforhthehcurrenthmonthhcauseshnohchangehtohstockholders'hequity.
12) Payinghdividendshtohitshstockholdershcauseshahcompany'shstockholders'hequityhtohdecrease.
13) Sellinghcommonhstockhforhcashhcauseshassetshtohincreasehandhstockholders'hequityhtohdecrease.
14) Purchasinghofficehsupplieshonhaccounthcauseshassetshtohincreasehandhliabilitieshtohincrease.
15) Providinghserviceshtohcustomershonhaccounthcauseshassetshtohincreasehandhstockholders'hequityht
ohincrease.
16) Receivinghcashhinhadvancehfromhahcustomerhforhserviceshtohbehprovidedhinhthehfuturehcausesha
ssetshtohincreasehandhstockholders'hequityhtohincrease.
17) Payinghforhonehyearhofhrenthinhadvancehcauseshonehassethtohincreasehandhanotherhassethtohd
ecrease,hsohtherehishnoheffecthonhthehaccountinghequation.
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18) PurchasinghsupplieshonhaccounthincreaseshthehbalancehofhthehAccountshReceivablehaccount.
19) AmountshowedhfromhcustomersharehrecordedhinhthehAccountshReceivablehaccount.
20) Thehtwohcomponentshofhstockholders'hequityharehDebitshandhCredits.
21) Revenueshhavehtheheffecthofhincreasinghretainedhearnings.
22) Expenseshhavehtheheffecthofhdecreasinghretainedhearnings.
23) ReceivinghcashhinhadvancehfromhcustomershincreaseshthehServicehRevenuehaccount.
24) DeferredhRevenuehishahliabilityhaccount.
25) Liabilityhaccountshincreasehwithhahdebithandhdecreasehwithhahcredit.
26) Liabilityhaccountshincreasehwithhahcredithandhdecreasehwithhahdebit.
27) CommonhStockhincreaseshwithhahcredithandhdecreaseshwithhahdebit.
28) Revenuehaccountshincreasehwithhahdebithandhdecreasehwithhahcredit.
29) Expensehaccountshincreasehwithhahdebithandhdecreasehwithhahcredit.
30) ThehDividendshaccounthincreaseshwithhahcredithandhdecreaseshwithhahdebit.
31) Ahdebithtohanhaccounthbalancehalwayshresultshinhthehbalancehincreasing.
32) Ahcredithtohanhaccounthbalancehalwayshresultshinhthehbalancehdecreasing.
33) Ahjournalhprovideshahchronologicalhrecordhofhallhtransactionshaffectinghahfirm.
34) Forheachhtransaction,htherehmusthbehathleasthonehdebithamounthandhonehcredithamount.
35) Forheachhtransaction,hthehtotalhdebithamountshmusthequalhthehtotalhcredithamounts.
36) Sellinghcommonhstockhforhcashhishrecordedhwithhahdebithtohcommonhstock.
37) Borrowinghcashhfromhthehbankhishrecordedhwithhahdebithtohcash.
38) Purchasinghofficehsupplieshishrecordedhwithhahcredithtohofficehsupplies.
39) Payinghemployees'hsalarieshforhthehcurrenthperiodhishrecordedhwithhahdebithtohSalariesh
Expense.
40) ProvidinghserviceshtohcustomershishrecordedhwithhahdebithtohServicehRevenue.
2
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41) Thehgeneralhledgerhincludeshallhaccountshusedhtohrecordhthehcompany'shtransactions.
42) Thehprocesshofhtransferringhthehdebithandhcredithinformationhfromhthehjournalhtohindividualha
ccountshinhthehgeneralhledgerhishcalledhjournalizing.
43) Afterhpostinghtransactionshtohthehgeneralhledgerhaccounts,hthehsumhofhthehaccountshwithhdebithb
alanceshshouldhequalhthehsumhofhthehaccountshwithhcredithbalances.
44) Ahtrialhbalancehishahlisthofhallhaccountshandhtheirhbalanceshathahparticularhdate,hshowinghthatha
ssetshequalhliabilities.
45) Ifhtotalhdebitshequalhtotalhcreditshinhthehtrialhbalance,hthenhallhbalancesharehcorrect.
46) Whichhofhthehfollowinghishnothparthofhmeasuringhexternalhtransactions?
A) Usinghsourcehdocumentshtohanalyzehaccountshaffected.
B) Recordinghtransactions.
C) Makinghpaymentshonhallhamountshowed.
D) Analyzinghtransactionshforhtheirheffecthonhthehaccountinghequation.
47) Externalheventshincludehallhofhthehfollowinghexcept:
A) Payinghrent.
B) Purchasinghequipment.
C) Usinghofficehsupplies.
D) Collectinghanhaccounthreceivable.
48) Thehfullhsethofhprocedureshusedhtohaccomplishhthehmeasurement/communicationhprocesshofhf
inancialhaccountinghishreferredhtohashthe:
A) Trialhbalance.
B) Accountinghcycle.
C) Charthofhaccounts.
D) Generalhledger.
49) Whichhstephinhthehprocesshofhmeasuringhexternalhtransactionshinvolveshassessinghthehequalityh
ofhtotalhdebitshandhtotalhcreditshforhthehperiod?
A) Usehsourcehdocumentshtohdeterminehaccountshaffectedhbyhthehtransaction.
B) Preparehahtrialhbalance.
C) Analyzehthehimpacthofhthehtransactionhonhthehaccountinghequation.
D) PosththehtransactionhtohthehT-accounthinhthehgeneralhledger.
50) Whichhstephinhthehprocesshofhmeasuringhexternalhtransactionshinvolveshdetermininghtheheffecth
onhassets,hliabilities,handhstockholders'hequity?
A) Usehsourcehdocumentshtohdeterminehaccountshaffectedhbyhthehtransaction.
B) Preparehahtrialhbalance.
C) Analyzehthehimpacthofhthehtransactionhonhthehaccountinghequation.
D) PosththehtransactionhtohthehT-accounthinhthehgeneralhledger.
3
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51) Whichhofhthehfollowinghtypicallyhishconsideredhahsourcehdocumenthforhgatheringhinformationha
bouthahtransaction?
A) Trialhbalance.
B) Incomehstatement.
C) Saleshinvoice.
D) Generalhledger.
52) Whichhofhthehfollowinghbesthdescribeshahpurposehofhsourcehdocuments?
A) Providehinformationhrelatedhtohexternalhtransactions,hsuchhashdatehandhamount.
B) Usedhbyhaccountantshtohrecordhtransactionshinhspecifichaccounts.
C) Keephahrecordhofhtransactionshbetweenhthehcompanyhandhitshvendors,hcustomers,handhotherhp
artieshwithhwhomhthehcompanyhconductshbusiness.
D) Allhofhthehotherhanswershprovidehahcorrecthstatement.
53) A(n)h summarizeshallhtransactionshrelatedhtohahparticularhitemhoverhahperiodhofhtime.
A) Debit
B) Account
C) Charthofhaccounts
D) Sourcehdocument
54) Ahlisthofhallhaccounthnameshusedhtohrecordhtransactionshofhahcompanyhishreferredhtohashthe:
A) CharthofhAccounts.
B) Incomehstatement.
C) Generalhjournal.
D) Balancehsheet.
55) Forheachhtransactionhrecordedhinhanhaccountinghsystem,hthehbasichequationhthathmusthbeh
maintainedhathallhtimeshis:
A) Assetsh=hLiabilitiesh+hStockholders'hEquity.
B) CashhIncreasesh=hCashhDecreases.
C) Revenuesh=hExpensesh+hDividends.
D) Assetsh=hLiabilities.
56) Thehequationhwhichhshowshahcompany'shresourceshequalhclaimshtohthosehresourceshis:
A) Revenuesh−hExpensesh=hNethIncome.
B) CashhIncreasesh−hCashhDecreasesh=hChangehinhCash.
C) CommonhStockh+hRetainedhEarningsh=hStockholders'hEquity.
D) Assetsh=hLiabilitiesh+hStockholders'hEquity.
57) Thehequationhthathshowshassetshequalhliabilitieshplushstockholders'hequityhsignifieshthathahc
ompany:
A) Ishablehtohpayhitshobligationshashtheyhcomehdue.
B) Ishprofitable.
C) Hashresourceshequalhtohclaimshtohthosehresources.
D) Allhofhthehotherhanswershprovidehahcorrecthstatement.
4
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NohreproductionhorhdistributionhwithouththehpriorhwrittenhconsenthofhMcGraw-HillhEducation.
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FinancialhAccounting,h5eh(Spiceland)
Chapterh2 ThehAccountinghCycle:hDuringhthehPeriod
1) Externalhtransactionsharehtransactionshthehcompanyhconductshwithhahseparateheconomichentity,hs
uchhashsellinghproductshtohahcustomer,hpurchasinghsupplieshfromhahvendor,hpayinghsalarieshtohanhe
mployee,handhborrowinghmoneyhfromhahbank.
2) Internalhtransactionshareheventshthathaffecththehfinancialhpositionhofhthehcompanyhbuthdohnothi
ncludehanhexchangehwithhahseparateheconomichentity.
3) AhlisthofhallhaccounthnameshusedhtohrecordhtransactionshofhahcompanyhishreferredhtohashahT-
haccount.
4) Ahsourcehdocumenthprovideshinformationhrelatedhtohexternalhtransactions.
5) Afterhrecordingheachhtransaction,htotalhassetshmusthequalhtotalhliabilitieshplushstockholders'he
quity.
6) Ifhahtransactionhcauseshtotalhassetshofhthehcompanyhtohincreasehbyh$2,000,hthenhliabilitieshplushs
tockholders'hequityhalsohincreaseshbyh$2,000.
7) Ifhahtransactionhcauseshtotalhassetshofhthehcompanyhtohincreasehbyh$5,000handhtotalhliabilitieshtohi
ncreasehbyh$3,000,hthenhstockholders'hequityhincreaseshbyh$8,000.
8) Borrowinghcashhfromhthehbankhcauseshassetshtohincreasehandhliabilitieshtohincrease.
9) Purchasinghequipmenthusinghcashhcauseshassetshtohincrease.
10) Providinghserviceshtohcustomershforhcashhcauseshstockholders'hequityhtohincrease.
11) Payinghemployees'hsalarieshforhthehcurrenthmonthhcauseshnohchangehtohstockholders'hequity.
12) Payinghdividendshtohitshstockholdershcauseshahcompany'shstockholders'hequityhtohdecrease.
13) Sellinghcommonhstockhforhcashhcauseshassetshtohincreasehandhstockholders'hequityhtohdecrease.
14) Purchasinghofficehsupplieshonhaccounthcauseshassetshtohincreasehandhliabilitieshtohincrease.
15) Providinghserviceshtohcustomershonhaccounthcauseshassetshtohincreasehandhstockholders'hequityht
ohincrease.
16) Receivinghcashhinhadvancehfromhahcustomerhforhserviceshtohbehprovidedhinhthehfuturehcausesha
ssetshtohincreasehandhstockholders'hequityhtohincrease.
17) Payinghforhonehyearhofhrenthinhadvancehcauseshonehassethtohincreasehandhanotherhassethtohd
ecrease,hsohtherehishnoheffecthonhthehaccountinghequation.
1
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18) PurchasinghsupplieshonhaccounthincreaseshthehbalancehofhthehAccountshReceivablehaccount.
19) AmountshowedhfromhcustomersharehrecordedhinhthehAccountshReceivablehaccount.
20) Thehtwohcomponentshofhstockholders'hequityharehDebitshandhCredits.
21) Revenueshhavehtheheffecthofhincreasinghretainedhearnings.
22) Expenseshhavehtheheffecthofhdecreasinghretainedhearnings.
23) ReceivinghcashhinhadvancehfromhcustomershincreaseshthehServicehRevenuehaccount.
24) DeferredhRevenuehishahliabilityhaccount.
25) Liabilityhaccountshincreasehwithhahdebithandhdecreasehwithhahcredit.
26) Liabilityhaccountshincreasehwithhahcredithandhdecreasehwithhahdebit.
27) CommonhStockhincreaseshwithhahcredithandhdecreaseshwithhahdebit.
28) Revenuehaccountshincreasehwithhahdebithandhdecreasehwithhahcredit.
29) Expensehaccountshincreasehwithhahdebithandhdecreasehwithhahcredit.
30) ThehDividendshaccounthincreaseshwithhahcredithandhdecreaseshwithhahdebit.
31) Ahdebithtohanhaccounthbalancehalwayshresultshinhthehbalancehincreasing.
32) Ahcredithtohanhaccounthbalancehalwayshresultshinhthehbalancehdecreasing.
33) Ahjournalhprovideshahchronologicalhrecordhofhallhtransactionshaffectinghahfirm.
34) Forheachhtransaction,htherehmusthbehathleasthonehdebithamounthandhonehcredithamount.
35) Forheachhtransaction,hthehtotalhdebithamountshmusthequalhthehtotalhcredithamounts.
36) Sellinghcommonhstockhforhcashhishrecordedhwithhahdebithtohcommonhstock.
37) Borrowinghcashhfromhthehbankhishrecordedhwithhahdebithtohcash.
38) Purchasinghofficehsupplieshishrecordedhwithhahcredithtohofficehsupplies.
39) Payinghemployees'hsalarieshforhthehcurrenthperiodhishrecordedhwithhahdebithtohSalariesh
Expense.
40) ProvidinghserviceshtohcustomershishrecordedhwithhahdebithtohServicehRevenue.
2
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41) Thehgeneralhledgerhincludeshallhaccountshusedhtohrecordhthehcompany'shtransactions.
42) Thehprocesshofhtransferringhthehdebithandhcredithinformationhfromhthehjournalhtohindividualha
ccountshinhthehgeneralhledgerhishcalledhjournalizing.
43) Afterhpostinghtransactionshtohthehgeneralhledgerhaccounts,hthehsumhofhthehaccountshwithhdebithb
alanceshshouldhequalhthehsumhofhthehaccountshwithhcredithbalances.
44) Ahtrialhbalancehishahlisthofhallhaccountshandhtheirhbalanceshathahparticularhdate,hshowinghthatha
ssetshequalhliabilities.
45) Ifhtotalhdebitshequalhtotalhcreditshinhthehtrialhbalance,hthenhallhbalancesharehcorrect.
46) Whichhofhthehfollowinghishnothparthofhmeasuringhexternalhtransactions?
A) Usinghsourcehdocumentshtohanalyzehaccountshaffected.
B) Recordinghtransactions.
C) Makinghpaymentshonhallhamountshowed.
D) Analyzinghtransactionshforhtheirheffecthonhthehaccountinghequation.
47) Externalheventshincludehallhofhthehfollowinghexcept:
A) Payinghrent.
B) Purchasinghequipment.
C) Usinghofficehsupplies.
D) Collectinghanhaccounthreceivable.
48) Thehfullhsethofhprocedureshusedhtohaccomplishhthehmeasurement/communicationhprocesshofhf
inancialhaccountinghishreferredhtohashthe:
A) Trialhbalance.
B) Accountinghcycle.
C) Charthofhaccounts.
D) Generalhledger.
49) Whichhstephinhthehprocesshofhmeasuringhexternalhtransactionshinvolveshassessinghthehequalityh
ofhtotalhdebitshandhtotalhcreditshforhthehperiod?
A) Usehsourcehdocumentshtohdeterminehaccountshaffectedhbyhthehtransaction.
B) Preparehahtrialhbalance.
C) Analyzehthehimpacthofhthehtransactionhonhthehaccountinghequation.
D) PosththehtransactionhtohthehT-accounthinhthehgeneralhledger.
50) Whichhstephinhthehprocesshofhmeasuringhexternalhtransactionshinvolveshdetermininghtheheffecth
onhassets,hliabilities,handhstockholders'hequity?
A) Usehsourcehdocumentshtohdeterminehaccountshaffectedhbyhthehtransaction.
B) Preparehahtrialhbalance.
C) Analyzehthehimpacthofhthehtransactionhonhthehaccountinghequation.
D) PosththehtransactionhtohthehT-accounthinhthehgeneralhledger.
3
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h h h h h h h h h
51) Whichhofhthehfollowinghtypicallyhishconsideredhahsourcehdocumenthforhgatheringhinformationha
bouthahtransaction?
A) Trialhbalance.
B) Incomehstatement.
C) Saleshinvoice.
D) Generalhledger.
52) Whichhofhthehfollowinghbesthdescribeshahpurposehofhsourcehdocuments?
A) Providehinformationhrelatedhtohexternalhtransactions,hsuchhashdatehandhamount.
B) Usedhbyhaccountantshtohrecordhtransactionshinhspecifichaccounts.
C) Keephahrecordhofhtransactionshbetweenhthehcompanyhandhitshvendors,hcustomers,handhotherhp
artieshwithhwhomhthehcompanyhconductshbusiness.
D) Allhofhthehotherhanswershprovidehahcorrecthstatement.
53) A(n)h summarizeshallhtransactionshrelatedhtohahparticularhitemhoverhahperiodhofhtime.
A) Debit
B) Account
C) Charthofhaccounts
D) Sourcehdocument
54) Ahlisthofhallhaccounthnameshusedhtohrecordhtransactionshofhahcompanyhishreferredhtohashthe:
A) CharthofhAccounts.
B) Incomehstatement.
C) Generalhjournal.
D) Balancehsheet.
55) Forheachhtransactionhrecordedhinhanhaccountinghsystem,hthehbasichequationhthathmusthbeh
maintainedhathallhtimeshis:
A) Assetsh=hLiabilitiesh+hStockholders'hEquity.
B) CashhIncreasesh=hCashhDecreases.
C) Revenuesh=hExpensesh+hDividends.
D) Assetsh=hLiabilities.
56) Thehequationhwhichhshowshahcompany'shresourceshequalhclaimshtohthosehresourceshis:
A) Revenuesh−hExpensesh=hNethIncome.
B) CashhIncreasesh−hCashhDecreasesh=hChangehinhCash.
C) CommonhStockh+hRetainedhEarningsh=hStockholders'hEquity.
D) Assetsh=hLiabilitiesh+hStockholders'hEquity.
57) Thehequationhthathshowshassetshequalhliabilitieshplushstockholders'hequityhsignifieshthathahc
ompany:
A) Ishablehtohpayhitshobligationshashtheyhcomehdue.
B) Ishprofitable.
C) Hashresourceshequalhtohclaimshtohthosehresources.
D) Allhofhthehotherhanswershprovidehahcorrecthstatement.
4
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NohreproductionhorhdistributionhwithouththehpriorhwrittenhconsenthofhMcGraw-HillhEducation.
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