Exam (elaborations)
Financial Accounting, 12e (Thomas/Tietz/Harrison)
Financial Accounting, 12e (Thomas/Tietz/Harrison)
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
,DOWNLOAD THE Test Bank for Financial Accounting 12th Edition ThomasFinancial Accounting, 12e (Thomas/Tietz/Harrison)
Chapter 2 Transaction Analysis
Learning Objective 2-1
1) A transaction is any event that has a financial impact on the business and that can be measured
reliably.
Answer: TRUE
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
2) Business events are recorded even if the financial impact cannot be measured.
Answer: FALSE
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3) Transactions provide objective information about the financial impact of an exchange on an
entity.
Answer: TRUE
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
4) The account is the basic summary device of accounting.
Answer: TRUE
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
5) An account receivable represents the promise of the business to pay a debt.
Answer: FALSE
Diff: 2
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
1
Copyright © 2019 Pearson Education, Inc.
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Accounting 12th Edition Thomas
6) Prepaid rent is an expense because the payment provides a future benefit of the company.
Answer: FALSE
Diff: 2
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
7) Assets include cash, land, and accounts payable.
Answer: FALSE
Diff: 2
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
8) Cost of goods sold is an example of a revenue account.
Answer: FALSE
Diff: 2
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
9) An accrued liability is a liability for an expense that has not yet been paid.
Answer: TRUE
Diff: 2
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
10) A prepaid expense is an asset.
Answer: TRUE
Diff: 2
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
2
Copyright © 2019 Pearson Education, Inc.
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Accounting 12th Edition Thomas
11) Which of the following is NOT a business transaction?
A) A company buys goods on account.
B) A company sells land for cash.
C) A company fired 10 percent of the employees due to lackluster sales.
D) A company borrows money from the bank.
Answer: C
Diff: 2
LO: 2-1
AACSB: Analytical Thinking
AICPA Bus Persp: Strategic/Critical Thinking
AICPA Functional: Measurement
12) Which of the following is a business transaction?
A) A company signs a contract for services to be provided during the first quarter of the next
fiscal year.
B) A company pays its employees a year-end bonus.
C) A company hires a new marketing manager.
D) A company applies for a mortgage that will be used to purchase a new office building.
Answer: B
Diff: 2
LO: 2-1
AACSB: Analytical Thinking
AICPA Bus Persp: Strategic/Critical Thinking
AICPA Functional: Measurement
13) A record of all the changes in a particular asset during a period of time is found in a(n):
A) transaction.
B) trial balance.
C) prior period's balance sheet.
D) account.
Answer: D
Diff: 1
LO: 2-1
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3
Copyright © 2019 Pearson Education, Inc.
mynursytest.store
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Americannursingaassociation. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $27.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now