1. The first step in the processing of a transaction is to analyze the transaction and source documents.
TRUE
AACSB: Communication
AICPA BB:
... [Show More] Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C1 Explain the steps in processing transactions and the role of source documents.
Topic: Processing Transactions
Wild - Chapter 02 #1
2. Preparation of a trial balance is the first step in the analyzing and recording process.
FALSE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C1 Explain the steps in processing transactions and the role of source documents.
Topic: Processing Transactions
Wild - Chapter 02 #2
3. Source documents provide evidence of business transactions and are the basis for accounting entries.
TRUE
AACSB: Communication
AICPA BB: Industry
http://www.esolutionmanual.com/
click it ,it has the solutions manual and test bank
contact me: [email protected]
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C1 Explain the steps in processing transactions and the role of source documents.
Topic: Processing Transactions
Wild - Chapter 02 #3
4. Items such as sales tickets, bank statements, checks, and purchase orders are source documents.
TRUE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C1 Explain the steps in processing transactions and the role of source documents.
Topic: Processing Transactions
Wild - Chapter 02 #4
5. An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or
expense item.
TRUE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Topic: Accounts
Wild - Chapter 02 #5
6. A customer's promise to pay is called an account payable to the seller.
FALSE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Topic: Accounts
Wild - Chapter 02 #6
7. Withdrawals by the owner are a business expense.
FALSE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Topic: Accounts
Wild - Chapter 02 #7
http://www.esolutionmanual.com/
click it ,it has the solutions manual and test bank
contact me: [email protected]
8. Land and buildings are generally recorded in the same ledger account.
FALSE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Topic: Accounts
Wild - Chapter 02 #8
9. Unearned revenues are liabilities.
TRUE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Topic: Accounts
Wild - Chapter 02 #9
10. Cash withdrawn by the owner of a proprietorship should be treated as an expense of the business.
FALSE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Topic: Accounts
Wild - Chapter 02 #10
11. When a company provides services for which cash will not be received until some future date, the
company should record the amount charged as unearned revenue.
FALSE
AACSB: Communication
AICPA BB: Industry
AICPA FN: Decision Making [Show Less]