Test Bank: Financial Accounting Information for Decisions 6th Edition by Wild Test Bank

For This And Any Other test Bnaks, slotion Manuals, Quizess, Exams And Assignments Contact us At whiperhills@gmail.com

[Question]

16. An account balance is the difference between the debits and credits for an account including any beginning balance.
Answer: TRUE

Bloom’s Taxonomy: Remember
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Easy
Learning Objective: 02-C4

[Question]

17. Debit means the right-hand side of any account.
Answer: FALSE

Bloom’s Taxonomy: Remember
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Easy
Learning Objective: 02-C4

[Question]

18. In a double-entry accounting system, total amount debited must always equal total amount credited.
Answer: TRUE

Bloom’s Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Easy
Learning Objective: 02-C4

[Question]

19. Increases in liability accounts are recorded as debits.
Answer: FALSE

Bloom’s Taxonomy: Remember
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Easy
Learning Objective: 02-C4

[Question]

20. Debits increase both asset and expense accounts.
Answer: TRUE

Bloom’s Taxonomy: Remember
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Easy
Learning Objective: 02-C4

[Question]

21. Credits always increase account balances.
Answer: FALSE

Bloom’s Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Medium
Learning Objective: 02-C4

[Question]

22. Crediting an expense account decreases it.
Answer: TRUE

Bloom’s Taxonomy: Remember
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Medium
Learning Objective: 02-C4

[Question]

23. Double entry accounting requires that the impact of each transaction be recorded in at least two accounts.
Answer: TRUE

[Question]

24. A revenue account normally has a debit balance.
Answer: FALSE

[Question]

25. Accounts are normally decreased by debits.
Answer: FALSE

[Question]

26. The dividends account normally has a credit balance since it is an equity account.
Answer: FALSE

[Question]

27. Asset accounts normally have credit balances and expense accounts normally have debit balances.
Answer: FALSE

[Question]

28. Common Stock normally has a debit balance.
Answer: FALSE

[Question]

29. A debit entry is always favorable.
Answer: FALSE

Bloom’s Taxonomy: Understand
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Hard
Learning Objective: 02-C4

[Question]

30. A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.
Answer: TRUE

Bloom’s Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Hard
Learning Objective: 02-C4

[Question]

31. A transaction that increases an asset and decreases a liability must also affect one or more other accounts.
Answer: TRUE

Bloom’s Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Hard
Learning Objective: 02-C4

[Question]

32. If insurance coverage for the next three years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.
Answer: TRUE

Bloom’s Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Medium
Learning Objective: 02-A1

[Question]

33. The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.
Answer: TRUE

Bloom’s Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Medium
Learning Objective: 02-A1

[Question]

34. If a company pays cash to purchase land, the journal entry to record this transaction will include a debit to Cash.
Answer: FALSE

Bloom’s Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Medium
Learning Objective: 02-A1

[Question]

35. If a company provides services to a customer on credit the service provider company should credit Accounts Receivable.
Answer: FALSE

Bloom’s Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Hard
Learning Objective: 02-A1

[Question]

36. When a company bills a customer for $600 for services rendered, the journal entry to record this transaction will include a $600 debit to Services Revenue.
Answer: FALSE

Bloom’s Taxonomy: Apply
AACSB: Analytic
AACSB: Communication
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Difficulty: Hard
Learning Objective: 02-A1

Test Bank

Tuesday, 1 November 2016

Financial Accounting Information for Decisions 6th Edition by Wild Test Bank

For This And Any Other test Bnaks, slotion Manuals, Quizess, Exams And Assignments Contact us At whiperhills@gmail.com

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