Chapter 02 – Double-Entry Accounting
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Page 1
1. Accounts are records of increases and decreases in individual accounting equation elements.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 – Purpose
ACCT.ACBSP.APC.02 – GAAP
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
2. A chart of accounts is a listing of accounts that make up the journal.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.01 – Purpose
ACCT.ACBSP.APC.02 – GAAP
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
3. The chart of accounts should be the same for each business.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.03 – Business Forms
Copyright Cengage Learning. Powered by Cognero.
Page 6
14. The right side of a T account is known as a debit and the left side is known as a credit.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
STATE STANDARDS:
United States – IN – APC–06-Recording Transactions
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
15. Debiting the cash account will increase the account.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
STATE STANDARDS:
United States – IN – APC–06-Recording Transactions
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
16. A credit to the cash account will increase the account.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
Chapter 02 – Double-Entry Accounting
Copyright Cengage Learning. Powered by Cognero.
Page 8
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
STATE STANDARDS:
United States – IN – APC–06-Recording Transactions
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
20. The balance of the account can be determined by adding all of the debits, adding all of the credits, and adding the
amounts together.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
STATE STANDARDS:
United States – IN – APC–06-Recording Transactions
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
21. Liabilities are debts owed by the business entity.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
STATE STANDARDS:
United States – IN – APC–03-Business Forms
Chapter 02 – Double-Entry Accounting
Copyright Cengage Learning. Powered by Cognero.
Page 10
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
STATE STANDARDS:
United States – IN – APC–04-Cash vs. Accrual
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.04 – Cash vs. Accrual
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
25. Expenses result from selling services or products to customers.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
STATE STANDARDS:
United States – IN – APC–06-Recording Transactions
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:26 PM
DATE MODIFIED:
10/16/2017 4:19 PM
26. Stockholders’ equity is reduced by the amount in the dividends account.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
STATE STANDARDS:
United States – IN – APC–03-Business Forms