Search This Blog(textbook name or author as the keywords)You can cantact me by the Contact Form

1/26/13

Intermediate Accounting 7th Spiceland SOLUTIONS MANUAl and test bank

Intermediate Accounting, 7/e SOLUTIONS MANUAl and test bank  David Spiceland, University of Memphis

James F. Sepe, Santa Clara University
Mark W. Nelson, Cornell University

ISBN: 007802532x
Copyright year: 2013
Intermediate Accounting Seventh Edition Large Cover


Intermediate Accounting with Annual Report 7e David Spiceland James Sepe Mark Nelson  SM






http://www.mediafire.com/view/n7hesmqv76ihudh/ch3_final(2).doc




test bank ch2 Key
 
1.
Owners' equity can be expressed as assets minus liabilities. 
 
TRUE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Analyze routine economic events-transactions-and record their effects on a companys financial position using the accounting equation format.
Spiceland - Chapter 02 #1
Topic: Analyze Routine Economic Events Using the Accounting Equation
 

2.
Debits increase asset accounts and decrease liability accounts. 
 
TRUE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Record transactions using the general journal format.
Spiceland - Chapter 02 #2
Topic: Record Transactions Using the General Journal
 

3.
Balance sheet accounts are referred to as temporary accounts because their balances are always changing. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Record transactions using the general journal format.
Spiceland - Chapter 02 #3
Topic: Record Transactions Using the General Journal
 

4.
After an unadjusted trial balance is prepared, the next step in the accounting processing cycle is the preparation of financial statements. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Post the effects of journal entries to general ledger accounts and prepare an unadjusted trial balance.
Spiceland - Chapter 02 #4
Topic: Post and Prepare an Unadjusted Trial Balance
 

5.
Adjusting journal entries are required to comply with the realization and matching principles. 
 
TRUE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Identify and describe the different types of adjusting journal entries.
Spiceland - Chapter 02 #5
Topic: Identify and Describe Adjusting Entries
 

6.
Accruals occur when the cash flow precedes either revenue or expense recognition. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Identify and describe the different types of adjusting journal entries.
Spiceland - Chapter 02 #6
Topic: Identify and Describe Adjusting Entries
 

7.
The adjusted trial balance contains only permanent accounts. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Record adjusting journal entries in general journal format; post entries; and prepare an adjusted trial balance.
Spiceland - Chapter 02 #7
Topic: Record, Post, and Prepare an Adjusted Trial Balance
 

8.
The income statement summarizes the operating activity of a firm at a particular point in time. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-06 Describe the four basic financial statements.
Spiceland - Chapter 02 #8
Topic: Describe the Four Basic Financial Statements
 

9.
The balance sheet can be considered a change or flow statement. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-06 Describe the four basic financial statements.
Spiceland - Chapter 02 #9
Topic: Describe the Four Basic Financial Statements
 

10.
The statement of cash flows summarizes transactions that caused cash to change during a reporting period. 
 
TRUE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-06 Describe the four basic financial statements.
Spiceland - Chapter 02 #10
Topic: Describe the Four Basic Financial Statements
 

11.
The statement of shareholders' equity discloses the changes in the temporary shareholders' equity accounts. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-06 Describe the four basic financial statements.
Spiceland - Chapter 02 #11
Topic: Describe the Four Basic Financial Statements
 

12.
The post-closing trial balance contains only permanent accounts. 
 
TRUE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-07 Explain the closing process.
Spiceland - Chapter 02 #12
Topic: Explain the Closing Process
 

13.
The closing process brings all temporary accounts to a zero balance and updates the balance in the retained earnings account. 
 
TRUE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-07 Explain the closing process.
Spiceland - Chapter 02 #13
Topic: Explain the Closing Process
 

14.
A reversing entry at the beginning of a period for salaries would include a debit to salaries expense. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-Appendix 2B Reversing Entries.
Spiceland - Chapter 02 #14
Topic: Reversing Entries
 

15.
The sale of merchandise on account would be recorded in a sales journal. 
 
TRUE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-Appendix 2C Subsidiary Ledgers and Special Journals.
Spiceland - Chapter 02 #15
Topic: Subsidiary Ledgers and Special Journals
 

16.
The payment of cash to a supplier would be recorded in a purchases journal. 
 
FALSE

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-Appendix 2C Subsidiary Ledgers and Special Journals.
Spiceland - Chapter 02 #16
Topic: Subsidiary Ledgers and Special Journals
 

17.
The accounting equation can be stated as: 
 

A. 
A + L - OE = 0.

B. 
A - L + OE = 0.

C. 
-A + L - OE = 0.

D. 
A - L - OE = 0.

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Analyze routine economic events-transactions-and record their effects on a companys financial position using the accounting equation format.
Spiceland - Chapter 02 #17
Topic: Analyze Routine Economic Events Using the Accounting Equation
 

18.
Examples of external transactions include all of the following except: 
 

A. 
Paying employees salaries.

B. 
Purchasing equipment.

C. 
Depreciating equipment.

D. 
Collecting a receivable.

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-01 Analyze routine economic events-transactions-and record their effects on a companys financial position using the accounting equation format.
Spiceland - Chapter 02 #18
Topic: Analyze Routine Economic Events Using the Accounting Equation
 

19.
Examples of internal transactions include all of the following except: 
 

A. 
Writing off an uncollectible account.

B. 
Recording the expiration of prepaid insurance.

C. 
Recording unpaid wages.

D. 
Paying wages to company employees.

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-01 Analyze routine economic events-transactions-and record their effects on a companys financial position using the accounting equation format.
Spiceland - Chapter 02 #19
Topic: Analyze Routine Economic Events Using the Accounting Equation
 

20.
XYZ Corporation receives $100,000 from investors for issuing them shares of its stock. XYZ's journal entry to record this transaction would include a: 
 

A. 
Debit to investments.

B. 
Credit to retained earnings.

C. 
Credit to capital stock.

D. 
Credit to revenue.

AACSB: Analytic
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-01 Analyze routine economic events-transactions-and record their effects on a companys financial position using the accounting equation format.
Spiceland - Chapter 02 #20
Topic: Analyze Routine Economic Events Using the Accounting Equation
 

21.
Incurring an expense for advertising on account would be recorded by: 
 

A. 
Debiting liabilities.

B. 
Crediting assets.

C. 
Debiting an expense.

D. 
Debiting assets.

AACSB: Analytic
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-01 Analyze routine economic events-transactions-and record their effects on a companys financial position using the accounting equation format.
Spiceland - Chapter 02 #21
Topic: Analyze Routine Economic Events Using the Accounting Equation
 

22.
A sale on account would be recorded by: 
 

A. 
Debiting revenue.

B. 
Crediting assets.

C. 
Crediting liabilities.

D. 
Debiting assets.

AACSB: Analytic
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-02 Record transactions using the general journal format.
Spiceland - Chapter 02 #22
Topic: Record Transactions Using the General Journal
 

23.
Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.'s journal entry to record this transaction would include a: 
 

A. 
Debit to investments.

B. 
Credit to retained earnings.

C. 
Credit to capital stock.

D. 
Debit to expense.

AACSB: Analytic
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-02 Record transactions using the general journal format.
Spiceland - Chapter 02 #23
Topic: Record Transactions Using the General Journal
 

24.
Hughes Aircraft sold a four-passenger airplane for $380,000, receiving a $50,000 down payment and a 12% note for the balance. The journal entry to record this sale would include a: 
 

A. 
Credit to cash.

B. 
Debit to cash discount.

C. 
Debit to note receivable.

D. 
Credit to note receivable.

AACSB: Analytic
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-02 Record transactions using the general journal format.
Spiceland - Chapter 02 #24
Topic: Record Transactions Using the General Journal
 

25.
Somerset Leasing received $12,000 for 24 months rent in advance. How should Somerset record this transaction? 
 

A. 


B. 


C. 


D. 


AACSB: Analytic
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-02 Record transactions using the general journal format.
Spiceland - Chapter 02 #25
Topic: Record Transactions Using the General Journal
 

26.
Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise, costing $620 and sold for $960 on account? 
 

A. 


B. 


C. 


D. 


AACSB: Analytic
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 02-02 Record transactions using the general journal format.
Spiceland - Chapter 02 #26
Topic: Record Transactions Using the General Journal
 

27.
Ace Bonding Company purchased merchandise inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase? 
 

A. 


B. 


C. 


D. 


AACSB: Analytic
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-02 Record transactions using the general journal format.
Spiceland - Chapter 02 #27
Topic: Record Transactions Using the General Journal
 

28.
Which of the following accounts has a debit balance? 
 

A. 
Accounts payable.

B. 
Accrued taxes.

C. 
Accumulated depreciation.

D. 
Advertising expense.

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Post the effects of journal entries to general ledger accounts and prepare an unadjusted trial balance.
Spiceland - Chapter 02 #28
Topic: Post and Prepare an Unadjusted Trial Balance
 

29.
An example of a contra account is: 
 

A. 
Depreciation expense.

B. 
Accounts receivable.

C. 
Sales revenue.

D. 
Accumulated depreciation.

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Post the effects of journal entries to general ledger accounts and prepare an unadjusted trial balance.
Spiceland - Chapter 02 #29
Topic: Post and Prepare an Unadjusted Trial Balance
 

30.
Making insurance payments in advance is an example of: 
 

A. 
An accrued receivable transaction.

B. 
An accrued liability transaction.

C. 
An unearned revenue transaction.

D. 
A prepaid expense transaction.

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
Blooms: Create
Difficulty: 1 Easy
Learning Objective: 02-04 Identify and describe the different types of adjusting journal entries.
Spiceland - Chapter 02 #30
Topic: Identify and Describe Adjusting Entries
 














































No comments:

Post a Comment

Linkwithin

Related Posts Plugin for WordPress, Blogger...