Financial Accounting, 7e
Harrison/Horngren
Test Item File
Chapter 2: Transaction Analysis
2.1-1 A journal entry is an event that has a financial impact on the business that can be reliably measured.
Answer: Fal LO: 2-1 Diff: 2 EOC: S2-5
2.1-2 The trial balance is a NOT a formal accounting statement.
Answer: True LO: 2-1 Diff: 1 EOC: S2-25
2.1-3 Accrued Liabilities is a liability account.
Answer: True LO: 2-1 Diff: 1 EOC: E2-28
2.1-4 The retained earnings account reprents the excess of net income over dividends retained in the business since its inception.
Answer: True LO: 2-1 Diff: 1 EOC: P2-50A
2.1-5 Expen accounts always reprent expired asts.
Answer: Fal LO: 2-1 Diff: 2 EOC: E2-11
2.1-6 The dividends account indicates an increa in common stock.
Answer: Fal LO: 2-1 Diff: 2 EOC: E2-15
2.1-7 Double-entry accounting records only tho transactions affecting the income statement.
Answer: Fal LO: 2-1 Diff: 2 EOC: QC 8
2.1-8 The purcha of office equipment for cash would increa both an ast and a liability account.
Answer: Fal LO: 2-1 Diff: 2 EOC: P2-49A
2.1-9 Which of the following is NOT an ast account?
一起走过的日子英文版 A. Accounts Receivable
B. Prepaid Rent
C. Common Stock
D. All of the are ast accounts.
Answer: C LO: 2-1 Diff: 2 EOC: P2-49A
2.1-10 Prepaid expen accounts appear on:
A. the income statement.
B. the balance sheet.
cheating death
C. the statement of retained earnings and on the income statement.options
acresso D. both the income statement and balance sheet.
Answer: B LO: 2-1 Diff: 2 EOC: P2-56A
2.1-11 The term "double-entry accounting" indicates that the accountant:
A. records both sides of each transaction in the accounts affected.
B. computes the income statement and balance sheet effect of each transaction.
C. identifies both the cash inflows and the cash outflows.
D. us both the general journal and the general ledger when recording transactions.
Answer: A LO: 2-1 Diff: 2 EOC: QC 8
2.1-12 A company received cash in exchange for issuing stock. This transaction incread asts and:
a. incread expens.
b. incread revenues.
c. incread liabilities.
d. incread equity.
Answer: D LO: 2-1 Diff: 1 EOC: E2-16
2.1-13 A company purchad office supplies for cash. This transaction incread asts and:
A. incread equity.
B. incread liabilities.
C. incread revenues.
D. decread asts.
Answer: D LO: 2-1 Diff: 1 EOC: QC 10
2.1-14 A company performed rvices for a customer on account. This transaction incread asts and:
A. decread equity.
俄语入门学习B. incread liabilities.
C. incread expens.
D. incread revenues.
Answer: D LO: 2-1 Diff: 1 EOC: QC 3
2.1-15 A company paid cash for employee wages. This transaction:
A. incread cash and incread expens.
B. incread cash and decread expens.
C. decread cash and incread expens.
D. decread cash and decread revenues.
Answer: C LO: 2-1 Diff: 1 EOC: S2-5
2.1-16 A company paid cash for an amount owed to a creditor. This transaction decread cash and:
A. decread revenues.
B. decread liabilities.
C. decread expens.
D. incread expens.
Answer: B LO: 2-1 Diff: 1 EOC: E2-16
2.1-17 The owner of a business paid cash from his personal checking account to purch
a an automobile for his personal u. This transaction:
辩论赛技巧 A. incread a liability account and incread liabilities.
newcastle B. decread cash and incread expens.
C. incread asts and incread owners’ equity.
D. is not a transaction recognized by the business.
Answer: D LO: 2-1 Diff: 2 EOC: E2-15
2.1-18 Which type of account is incread when a company records a debt?
otherwi是什么意思A. Expen
B. Retained earnings
C. Liability
D. None of the above are correct.
Answer: C LO: 2-1 Diff: 2 EOC: QC 1
2.1-19 All of the following accounts would be considered asts EXCEPT for:
A. cash.
B. retained earnings.
C. prepaid expens.
D. notes receivable.
Answer: B LO: 2-1 Diff: 1 EOC: S2-9
2.1-20 What type of account is prepaid insurance?
A. A liability
B. An expen
C. Stockholders’ equity艾美奖2016
D. An ast
Answer: D LO: 2-1 Diff: 2 EOC: P2-49A
2.1-21 Which of the following accounts are a standard component of stockholders’ equity?
A. Prepaid Expens
B. Dividends
C. Additional Paid In Stock
D. Unearned Income
Answer: B LO: 2-1 Diff: 2 EOC: P2-50A
2.1-22 Notes payable, accounts payable, taxes payable and salaries payable are all examples of:
A. liabilities.
B. revenues.
C. expens.
D. asts.
helixAnswer: A LO: 2-1 Diff: 1 EOC: S2-9
2.1-23 Which type of account is decread when a company pays its employees with cash?
