Test Bank For Financial Accounting For MBAs ( 8th Edition) By Easton And John Wild||LATEST UPDATE 2024

,DOWNLOAD nTHE nTest nBank nfor nFinancial nAccounting nInformation nfor
nDecisions n8th nEdition nJohn nWild




Chapter


n02 nFinancial nStatements nand nthe nAccounting


nSystem



True n/ nFalse nQuestions



1. The nfirst nstep nto nget nfrom ntransactions nand nevents nto nfinancial nstatements nis
nto nidentify neachtransaction nfrom nsource ndocuments.



True False


2. Preparation nof na ntrial nbalance nis nthe nfirst nstep nin nprocessing na nfinancial ntransaction.


True False


3. Source ndocuments nidentify nand ndescribe nbusiness ntransactions nand nare nthe
nbasis nfor naccountingentries.



True False


4. Items nsuch nas nsales ntickets, nbank nstatements, nchecks, nand npurchase norders nare
nexamples nof nabusiness's nsource ndocuments.



True False


5. An naccount nis na nrecord nof nincreases nand ndecreases nin na nspecific nasset, nliability,
nequity, nrevenue, norexpense nitem.



True False




2-1
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior
nwritten nconsent nof
nMcGraw-HillnEducation.


mynursytest.store

,DOWNLOAD nTHE nTest nBank nfor nFinancial nAccounting nInformation nfor
nDecisions n8th nEdition nJohn nWild




6. A ncustomer's npromise nto npay non ncredit nis nclassified nas nan naccount npayable nby nthe nseller.


True False


7. Dividends npaid nto nthe nstockholders nare na nbusiness nexpense.


True False


8. The npurchase nof nland nand nbuildings nwill ngenerally nbe nrecorded nin nthe nsame nledger naccount.


True False


9. Unearned nrevenues nare nclassified nas nliabilities.


True False


10. Cash npaid nto nstockholders nby nthe nbusiness nof na ncorporation nand nused nfor npersonal
nexpenses, nshouldbe ntreated nas nan nexpense nof nthe nbusiness.



True False


11. When na ncompany nprovides nservices nfor nwhich ncash nwill nnot nbe nreceived nuntil nsome
nfuture ndate, nthecompany nshould nrecord nthe namount ncharged nas naccounts nreceivable.



True False


12. A ncompany's nchart nof naccounts nis na nlist nof nall nthe naccounts nused nand nincludes nan
nidentification nnumberassigned nto neach naccount.



True False


13. An naccount's nbalance nis nthe ndifference nbetween nthe ntotal ndebits nand ntotal
ncredits nfor nthe naccount,including nany nbeginning nbalance.



True False




2-2
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior
nwritten nconsent nof
nMcGraw-HillnEducation.


mynursytest.store

, DOWNLOAD nTHE nTest nBank nfor nFinancial nAccounting nInformation nfor
nDecisions n8th nEdition nJohn nWild




14. The nright nside nof nan naccount nis ncalled nthe ndebit nside.


True False


15. In na ndouble-entry naccounting nsystem, nthe ntotal ndollar namount ndebited nmust nalways
nequal nthe ntotaldollar namount ncredited.



True False


16. Increases nin nliability naccounts nare nrecorded nas ndebits.


True False


17. Debits nincrease nasset nand nexpense naccounts.


True False


18. Credits nalways nincrease naccount nbalances.


True False


19. Crediting nan nexpense naccount ndecreases nit.


True False


20. A nrevenue naccount nnormally nhas na ndebit nbalance.


True False


21. Asset naccounts nare nnormally ndecreased nby ndebits.


True False


22. Debit nmeans nincrease nand ncredit nmeans ndecrease nfor nall naccounts.


True False




2-3
Copyright n© n2017 nMcGraw-Hill nEducation. nAll nrights nreserved. nNo nreproduction nor ndistribution nwithout nthe nprior
nwritten nconsent nof
nMcGraw-HillnEducation.


mynursytest.store