Chapter 02 – Double-Entry Accounting
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Page 31
77. The debit side of an account
a.
depends on whether the account is an asset, liability, or stockholders’ equity
b.
can be either side of the account depending on how the accountant set up the system
c.
is the right side of the account
d.
is the left side of the account
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
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
78. An account is said to have a debit balance if
a.
the amount of the debits exceeds the amount of the credits
b.
there are more entries on the debit side than on the credit side
c.
there are more entries on the credit side than on the debit side
d.
the first entry of the accounting period was posted on the debit side
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
79. Which side of the account increases the cash account?
a.
credit
b.
neither a debit nor a credit
c.
debit
d.
either a debit or a credit
ANSWER:
c
Chapter 02 – Double-Entry Accounting
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Page 34
c.
T chart
d.
debit listing
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
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
85. In the chart of accounts, the balance sheet accounts are normally listed in which order?
a.
liabilities, assets, stockholders’ equity
b.
assets, liabilities, stockholders’ equity
c.
stockholders’ equity, assets, liabilities
d.
assets, stockholders’ equity, liabilities
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-01 – LO: 02–01
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
86. In which order are the accounts listed in the chart of accounts?
a.
assets, expenses, liabilities, stockholders’ equity, revenues
b.
stockholders’ equity, assets, liabilities, revenues, expenses
c.
assets, liabilities, stockholders’ equity, revenues, expenses
d.
assets, liabilities, revenues, expenses, stockholders’ equity
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
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Page 36
89. Which group of accounts is composed of only assets?
a.
Cash, Accounts Payable, Buildings
b.
Accounts Receivable, Revenue, Cash
c.
Prepaid Expenses, Buildings, Patents
d.
Unearned Revenues, Prepaid Expenses, Cash
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
90. Of the following, which is true about assets?
a.
Assets include both physical and intangible items.
b.
Assets include only physical items.
c.
Assets are the personal property of the stockholders of the company.
d.
Assets are not increased as a result of selling products or services to customers.
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
91. Which of the following statements is not true about liabilities?
a.
Liabilities are debts owed to outsiders.
b.
Account titles of liabilities often include the term “payable.”
c.
Cash received before a service is performed creates a liability.
d.
Liabilities include accumulated depreciation.
ANSWER:
POINTS:
Chapter 02 – Double-Entry Accounting
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Page 39
which the account belongs. Which of the following correctly identifies the major account groups typically represented by
the numbers 1 through 5?
a.
1-Assets, 2-Liabilities, 3-Stockholders’ Equity, 4-Expenses, 5-Revenues
b.
1-Assets, 2-Liabilities, 3-Stockholders’ Equity, 4-Revenues, 5-Expenses
c.
1-Assets, 2-Stockholders’ Equity, 3-Revenues, 4-Expenses, 5-Dividends
d.
1-Stockholders’ Equity, 2-Dividends, 3-Revenues, 4-Expenses, 5-Common Stock
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
96. Which of the following entries records the purchase of common stock by stockholders?
a.
debit Common Stock; credit Accounts Receivable
b.
debit Cash; credit Common Stock
c.
debit Dividends; credit Cash
d.
debit Fees Earned; credit Common Stock
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.02-02 – LO: 02–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.03 – Business Forms
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
97. A debit may signify a(n)
a.
decrease in asset accounts
b.
decrease in liability accounts
c.
increase in the common stock account
d.
decrease in the dividends account
ANSWER:
b
POINTS:
1