Financial Accounting 11th Edition Harrison SOLUTIONS MANUAL(Harrison/Horngren/Thomas)
Financial Accounting, 11e
... [Show More] (Harrison/Horngren/Thomas)
Chapter 2 Transaction Analysis
1 Learning Objective 2-1
1) A transaction is any event that has a financial impact on the business and that can be measured reliably.
2) Business events are recorded even if the financial impact cannot be measured.
3) Transactions provide objective information about the financial impact of an exchange on an entity.
4) Which of the following is NOT a business transaction?
A) A company buys goods on account.
B) A company sells land for cash.
C) A company fired 10 percent of the employees due to lackluster sales.
D) A company borrows money from the bank.
5) Which of the following is a business transaction?
A) A company signs a contact for services to be provided during the first quarter of the next fiscal year.
B) A company pays its employees a year-end bonus.
C) A company hires a new marketing manager.
D) A company applies for a mortgage that will be used to purchase a new office building.
2 Learning Objective 2-2
1) The account is the basic summary device of accounting.
2) An accounts receivable represents the promise of the business to pay a debt.
3) Prepaid rent is an expense because the payment provides a future benefit of the company.
4) Assets include cash, land, and accounts payable.
5) Cost of goods sold is an example of a revenue account.
6) An accrued liability is a liability for an expense that has not yet been paid.
7) A prepaid expense is an asset.
8) A record of all the changes in a particular asset during a period of time is found in a(n):
A) transaction.
B) trial balance.
C) prior period's balance sheet.
D) account.
9) All of the following accounts would be considered assets EXCEPT for:
A) Cash.
B) Retained Earnings.
C) Prepaid Expenses.
D) Notes Receivable.
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