会计学原理练习题

True/FalseQuestions1.Accountingrecordsarealsoreferredtoasthebooks.TRUE3.Preparationofatrialbalanceisthefirststepintheanalyzingandrecordingprocess.FALSE4.Sourcedocumentsprovideevidenceofbusinesstransactionsandarethebasisforaccountingentries.TRUE5.Itemssuchassalestickets,bankstatements,checks,andpurchaseordersaresourcedocuments.TRUE6.Anaccountisarecordofincreasesanddecreasesinaspecificasset,liability,equity,revenue,orexpenseitem.TRUE7.Acustomer'spromisetopayiscalledanaccountpayabletotheseller.FALSE9.Asprepaidexpensesareused,theexpiredcostsoftheassetsbecomeexpenses.TRUE10.Landandbuildingsaregenerallyrecordedinthesameledgeraccount.FALSe13.Cashwithdrawnbytheownerofaproprietorshipshouldbetreatedasanexpenseofthebusiness.FALSE15.Thechartofaccountsisalistofalltheaccountsusedbyacompanyandincludesanidentificationnumberassignedtoeachaccount.TRUE16.Anaccountbalanceisthedifferencebetweenthedebitsandcreditsforanaccountincludinganybeginningbalance.TRUE18.Inadouble-entryaccountingsystem,thetotalamountdebitedmustalwaysequalthetotalamountcredited.TRUE19.Increasesinliabilityaccountsarerecordedasdebits.FALSE20.Debitsincreaseassetandexpenseaccounts.TRUE21.Creditsalwaysincreaseaccountbalances.FALS23.Doubleentryaccountingrequiresthateachtransactionaffect,andberecordedin,atleasttwoaccounts.TRUE24.Arevenueaccountnormallyhasadebitbalance.FALSE25.Accountsarenormallydecreasedbydebits.FALSE26.Theowner'swithdrawalaccountnormallyhasacreditbalancesinceitisanequity28.Anowner'scapitalaccountnormallyhasadebitbalance.FALSE29.Adebitentryisalwaysfavorable.FALSE30.Atransactionthatdecreasesanassetaccountandincreasesaliabilityaccountmustalsoaffectoneormoreotheraccounts.TRUE31.Atransactionthatincreasesanassetanddecreasesaliabilitymustalsoaffectoneormoreotheraccounts.TRUE34.Ifacompanypurchaseslandpayingcash,thejournalentrytorecordthistransactionwillincludeadebittoCash.FALSEIfacompanyprovidesservicestoacustomeroncreditthesellingcompanyshouldcreditAccountsReceivable.FALSEWhenacompanybillsacustomerfor$600forservicesrendered,thejournalentrytorecordthistransactionwillincludea$600debittoServicesRevenue.FALSE37.Thedebtratiohelpstoassesstheriskacompanyhasoffailingtopayitsdebtsandishelpfultobothitsownersandcreditors.TRUE38.38.Thehigheracompany'sdebtratiois,thehighertheriskofacompanynotbeingabletomeetitsobligations.TRUEThedebtratioiscalculatedbydividingtotalassetsbytotalliabilities.FALSE40.Acompanythatfinancesarelativelylargeportionofitsassetswithliabilitiesissaidtohaveahighdegreeoffinancialleverage.TRUE41.Ifacompanyishighlyleveraged,thismeansthatithasrelativelylowriskofnotbeingabletorepayitsdebt.FALSE42.HamiltonIndustrieshasliabilitiesof$105millionandtotalassetsof$350million.Itsdebtratiois%.FALSE$105million/$350million=%43.Highfinancialleverageisalwaysbadforacompany'sowners.FALSE44.Acompoundjournalentryaffectsnomorethantwoaccounts.FALSE45.Postingisthetransferofjournalentryinformationtotheledger.TRUE46.Transactionsarefirstrecordedintheledger.FALSE47.Thejournalisknownasabookoforiginalentry.TRUE48.Ajournalgivesacompleterecordofeachtransactioninoneplace,andshowsthedebitsandcreditsforeachtransaction.TRUEAICPAFN:DecisionMakingDifficulty:EasyLearningObjective:C149.Thejournalisknownasthebookoffinalentrybecausefinancialstatementsarepreparedfromit.FALSEAICPAFN:DecisionMakingDifficulty:HardLearningObjective:C150.Atrialbalancethatbalancesisnotproofofcompleteaccuracyinrecordingtransactions.TRUEAICPAFN:DecisionMakingDifficulty:EasyLearningObjective:P251.Thetrialbalanceisalistofallaccountsandtheirbalancesatapointintimetakenfromtheledger.TRUEAICPAFN:DecisionMakingDifficulty:EasyLearningObjective:P252.Generally,theorderingofaccountsinatrialbalancetypicallyfollowstheiridentificationnumberfromthechartofaccounts,thatis,assetsfirst,thenliabilities,thenowner'scapitalandwithdrawals,followedbyrevenuesandexpenses.TRUEAACSB:AnalyticAICPAFN:DecisionMakingDifficulty:MediumLearningObjective:P253.Thetrialbalancecanserveasareplacementforthebalancesheet,sincedebitsmustequalwithcredits.FALSEAACSB:AnalyticAICPAFN:DecisionMakingDifficulty:MediumLearningObjective:P254.Atrialbalancethatisinbalanceisproofthatnoerrorsweremadeinjournalizingthetransactions,postingtotheledger,andpreparingthetrialbalance.FALSEAICPAFN:DecisionMakingDifficulty:MediumLearningObjective:P255.Ifcashwasincorrectlydebitedfor$100insteadofcorrectlycreditedfor$100,thecashaccountisoutofbalanceby$100.FALSEAACSB:AnalyticAICPAFN:DecisionMakingDifficulty:MediumLearningObjective:P256.Thebalancesheetprovidesalinkbetweenbeginningandendingincomestatements.FALSEAICPAFN:DecisionMakingDifficulty:MediumLearningObjective:P357.TheheadingoneachfinancialstatementliststhethreeW's–Who(thenameoftheorganization),What(thenameofthestatement),andWhere(theorganization'saddress)FALSEDifficulty:MediumLearningObjective:P358.Anincomestatementreportstherevenuesearnedlessexpensesincurredbyabusinessoveraperiodoftime.TRUEDifficulty:MediumLearningObjective:P359.Thebalancesheetreportsthefinancialpositionofacompanyatapointintime.TRUEDifficulty:MediumLearningObject