(Test Bank) Intermediate Accounting Canadian Edition Volume 1

Kieso, 13

Business

Test Bank

13th Edition

• $15.00 $50.00

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Description

Test Bank for Intermediate Accounting Canadian Edition Volume 1, The downloadable file consists of 1156 pages, and the total size of the file is 6.1 MB. Purchase now only for highly discounted price.

Author(s): Kieso

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Study Note Preview

Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-1 CHAPTER 0 ACCOUNTING CYCLE REVIEW Learning Objective Total # of questions from 1 41 2 124 3 31 4 17 5 187 6 6 7 6 8 20 9 11 TRUE-FALSE—Conceptual 1. Economic events that require recording in the financial statements are called accounting transactions. Answer: True Difficulty: Easy Learning Objective: Analyze business transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 2. Revenue increases shareholders’ equity and should be recorded whenever cash is received from customers. Answer: False Difficulty: Easy Learning Objective: Analyze business transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-2 3. Collection on an account receivable will increase both cash and accounts receivable. Answer: False Difficulty: Easy Learning Objective: Analyze business transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 4. The payment of a liability decreases both cash and accounts payable. Answer: True Difficulty: Easy Learning Objective: Analyze business transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 5. If total assets are increased, there must be a corresponding increase in liabilities or a decrease in shareholders’ equity. Answer: False Difficulty: Easy Learning Objective: Analyze business transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 6. A new account is opened for each transaction entered into by a business firm. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 7. The recording process becomes more efficient and informative if all transactions are recorded in one account. Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-3 Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 8. An account consists of two parts: (1) a left or debit side and (2) a right or credit side. Answer: True Difficulty: Easy Learning Objective: Analyze business transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 9. For a T account, an account balance is the difference in total dollars between total debit amounts and total credit amounts. Answer: True Difficulty: Easy Learning Objective: Analyze business transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 10. An account is often referred to as a T-account because of the way it is constructed. Answer: True Difficulty: Easy Learning Objective: Analyze business transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 11. A debit to an account always indicates an increase in that account. Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-4 Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 12. If a revenue account is credited, the revenue account is increased. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 13. The normal balance of all accounts is a debit. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 14. Debit and credit can be interpreted to mean “bad” and “good”, respectively. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 15. A credit means that an account has been increased. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-5 CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 16. A decrease in a liability account is recorded by a debit. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 17. An increase in an asset is recorded by a debit. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 18. The double-entry system of accounting refers to the placement of a double line at the end of a column of figures. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 19. A credit balance in a liability account indicates that an error in recording has occurred. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-6 20. The normal balance of an asset is a credit. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 21. The normal balance of the dividend account is a credit. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 22. Assets are decreased with a credit. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 23. A debit means that an account has been decreased. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 24. A decrease in a liability is recorded by a debit. Answer: True Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-7 Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 25. An increase in an asset is recorded by a debit. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 26. Liabilities are increased with debits and decreased with credits. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 27. The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 28. Revenues are a subdivision of shareholders’ equity. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-8 CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 29. Under the double-entry system, revenues must always equal expenses. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 30. Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 31. Source documents can provide evidence that a transaction has occurred. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 32. Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-9 AACSB: Analytic 33. Transactions are entered in the ledger accounts and then transferred to journals. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 34. All business transactions must be entered first in the general ledger. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 35. Transactions are recorded in alphabetical order in a journal. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 36. The journal is a chronological record of all transactions. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 37. A journal is an accounting record in which transactions are initially recorded. Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-10 Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 38. The complete effect of a transaction on the accounts is disclosed in the journal. Answer: True Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 39. The account titles used in journalizing transactions need not be identical to the account titles in the ledger. Answer: False Difficulty: Easy Learning Objective: Journalize the transactions. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 40. The chart of accounts is a special ledger used in accounting systems. Answer: False Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 41. A general ledger should be arranged in financial statement order beginning with the balance sheet accounts. Answer: True Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-11 Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 42. The entire group of accounts maintained by a company is referred to collectively as the journal. Answer: False Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 43. Prepaid expenses are assets. Answer: True Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 44. Salaries and wages payable account is a type of expense. Answer: False Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 45. Dividends are classified as an expense. Answer: False Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-12 Bloomcode: Knowledge AACSB: Analytic 46. Unearned Revenue is classified as a liability on the balance sheet. Answer: True Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 47. Posting is the process of proving the equality of debits and credits in the trial balance. Answer: False Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 48. Entering transactions into the journal is called posting. Answer: False Difficulty: Easy Learning Objective: Post to the ledger accounts. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 49. A trial balance is prepared at the beginning of an accounting period. Answer: False Difficulty: Easy Learning Objective: Prepare a trial balance. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 50. A trial balance does not prove that all transactions have been recorded or that the ledger is correct. Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-13 Answer: True Difficulty: Easy Learning Objective: Prepare a trial balance. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 51. In a trial balance, all debits are listed before all credits. Answer: False Difficulty: Easy Learning Objective: Prepare a trial balance. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 52. When the columns of the trial balance equal each other, it means that no errors have occurred in the recording and posting the transactions. Answer: False Difficulty: Easy Learning Objective: Prepare a trial balance. CPA: Financial Reporting Bloomcode: Comprehension AACSB: Analytic 53. The periodicity assumption states that the economic life of a business entity can be divided into artificial time periods. Answer: True Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 54. The periodicity assumption is often referred to as the expense recognition principle. Answer: False Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-14 Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 55. The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied. Answer: True Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 56. Expense recognition is tied to revenue recognition. Answer: True Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 57. The revenue recognition principle and the expense recognition principle are helpful guides used in determining net income or net loss for a period. Answer: True Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 58. The expense recognition principle requires that efforts be related to accomplishments. Answer: True Test Bank for Chapter 0 Kieso Intermediate Accounting, Thirteenth Canadian Edition 0-15 Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 59. Recognizing when an expense contributes to the production of revenue is critical. Answer: True Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 60. The expense recognition principle is frequently referred to as the matching principle. Answer: True Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 61. Income will always be greater under the cash basis of accounting than under the accrual basis of accounting. Answer: False Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting Bloomcode: Knowledge AACSB: Analytic 62. The cash basis of accounting is not in accordance with generally accepted accounting principles. Answer: True Difficulty: Easy Learning Objective: Journalize and post adjusting entries: Deferrals/Accruals. CPA: Financial Reporting