TEST BANK FOR INTERMEDIATE ACCOUNTING 11TH EDITION BY DAVID SPICELAND MARK NELSON WAYNE THOMAS JENNIFER (1).pdf
- 1. Version 1 1 Test Bank For Intermediate Accounting, 11th Edition by Spiceland, Mark Thomas, Jennifer Complete Verified Chapters
- 2. Version 1 2 AnswerlKey Testlname:lchapterl1l1) TERM PHRASE Termlnumberl t hatlmatcheslthe lphrase. 1. Predictivelvalue Informationlislusefullin 1 projectinglcashlflows. 2. Relevance Pertinentltoltheldecisionlat 2 hand. 3. Distributionltolown ers 4. Confirmatorylv alue Informationlislavailablelprior 5 toltheldecision. Decreaselinlequitylduelto 3 transfersltolowners. 5. Timeliness Informationlconfirms 4 expectations. 2) TERM PHRASE Termlnumberl t hatlmatcheslthe lphrase. 1. Gain Alonglwithlrelevance,la 5 fundamentalldecision-specificl quality. 2. Materiality Resultsliflanlassetlislsoldlfor 1 morelthanlbooklvalue. 3. Completeness Containslalllinformation 3 necessarylforlfaithfullrepresentation. 4. Comprehensiveli ncome Thelchangelinlequitylfrom 4 nonownerltransactions.
- 3. Version 1 3 5. Faithfullrepres entation 3) Concernsltheldecision-making 2 impactloflbothlthelamountlandl naturelofl anlitem. TERM PHRASE Termlnumberl t hatlmatcheslthe lphrase. 1. Neutrality Importantlinlanalysislbetween 2 firms. 2. Comparability Accountinglinformationlshould 1 belunbiased. 3. Consistency Theldecisionltolincludelan 5 amountlinlthelfinanciall statements. 4. Cost-effectiveness Applyinglthelsamelaccounting 3 practicesloverltime. 5. Recognition Considerslthelvalueloflusing 4 informationlrelativeltolcostloflprovidinglit. 4) TERM PHRASE Termlnumberl t hatlmatcheslthe lphrase. 1. Monetarylunitlas sumption Implieslconsensuslamong 2 differentlobservers. 2. Verifiability Assumeslallltransactionslcanlbe 3 identifiedlwithlalparticularlentity. 3. Economiclentitylass umption 4. Goinglconcernla ssumption 5. Periodicitylass umption 5) Assumeslanlentitylwilllcontinue 4 toloperatelindefinitely. Requireslreportinglthe 5 financialllifeloflanlentitylinl discreteltimelframes. Ignoreslthelpossibilitylof 1 inflation. TERM PHRASE Termlnumber thatlmatches thelphrase. 1.lHistorical cost Basisloflmeasurementlforlfixed 1
- 4. Version 1 4 assets. 2. Materiality Discountslfuturelcashlflows. 5 3. Revenuelr ecognition Occurslwhenlgoodslorlservices 3 areltransferredltolthel custome r. 4. Fullldisclosure Reportingloflalllinformation 4 thatlcouldlaffectldecisions. 5. Presentlvalue ApplicationloflGAAPlsometimes 2 avoidedlunderlthislconstraint. 6) TERM PHRASE Termlnumberl t hatlmatcheslthe lphrase. 1. Financiall Accountingl StandardslBoard 2. Accountingl Princ ipleslBoard Undermineslrepresentational 3 faithfulnesslbylbeingl inconsistentlwithlne utrality. ItlestablishedlGAAPlbeforelthe 2 FASB. 3. Conservatism ItslEITFlIssueslarelGAAPlwhen 1 enteredlinlthelAccountingl StandardslCodificati on. 4. Americanl Institute loflCPAsl(AICPA) 5. Securitieslandl Excha ngelCommission 7) ItlhaslthelauthorityltolsetlU.S. 5 accountinglstandards. Itlislthelnationallorganization 4 forlCPAslinlthelUnitedlStates. TERM PHRASE 1. Expenses Net assets. 2. Equity Outflows of resources generate revenues. Termlnumberl t hatlmatcheslthe lphrase2 . to 1 3. Distributions to Cash dividends. 3 owners 4. Investmentslbylo wners Claimsloflcreditorslagainst 5 thelassetsloflalbusiness. 5. Liabilities Transfersloflresourceslin 4 exchangelforlcommonlandl preferredlstock.
- 5. Version 1 5 8) TERM PHRASE Termlnumberl t hatlmatcheslthe lphrase. 1. Losses Netloutflowslfromlperipheral 1 transactions. 2. Assets Increaseslinlequitylfromlthe 3 saleloflgoodsland/orlservices. 3. Revenues Resultsliflanlassetlislsoldlfor 5 morelthanlbooklvalue. 4. Comprehensiveli ncome Alllchangeslinlequitylexcept 4 ownerltransactions. 5. Gains Probablelfutureleconomic 2 benefitslcontrolledlbylanlentity. 9) TERM PHRASE Termlnumberl t hatlmatcheslthe lphrase. 1. SEC Establisheslauditinglstandardslin 6 thelU.S.lforlpubliclcompanies. 2. FASB Primarylnationallorganizationlof 7 accountantslworkinglinlindustry. 3. IASB Setslaccountinglstandardslinlthe 2 UnitedlStates. 4. AICPA Providesltimelylresponseslto 5 financiallreportinglissues. 5. EITF ThelFASB'slparentlorganization. 10 6. PCAOB AdviseslthelFASB. 8 7. IMA FASB'slpredecessor. 9 8. FASAC Regulateslthelfinanciallreporting 1 forlpubliclcompanies. 9. APB Nationallorganizationloflcertified 4 publiclaccountants. 10. FAF Setslgloballaccountinglstandards. 3
- 6. Version 1 6 10)lTheselamountslareldifferentlbecauselofltheldifferenceslbetweenlcashl andlaccruallaccounting.l Aslopposedltolcashlflowslfromloperations,lnetl incomelincludeslbothlrevenueslandlexpensesltheltimi ngloflwhichldiffersl fromltheltimingloflcertainlcashlreceiptslandlpayments.lExampleslwouldl belcredi tlsaleslinlwhichlthelrevenueslarelrecordedlbeforelthelcollectionl oflcashlandlcostloflgoodslsoldlinlwh ichlthelexpenseloftenlislrecordedl laterlthanlthelcashlpaymentltolthelsupplierlforlthelmerchandise. 11)1.Disagree.lThislislalviolationloflthelhistoricallcostl(originall transactionlvalue)lprinciple. 2.Disagree.lThislislalviolationlofltheleconomiclentitylassumption.l 3.Disagree.lThelsellerlhaslnotlsatisf iedlitslobligationltoldeliverlgoods.l 4.Disagree.lThislislalviolationloflmatching. 5.Agree.lThelcompanylislconformingltolthelfullldisclosurelprinciple.l 6.Disagree.lThislislalviolationlofl thelperiodicitylassumption. 12)Economiclentity:lAllleconomicleventslcanlbelidentifiedlwithlal particularleconomiclentity. Goinglconcern:lInlthelabsenceloflinformationltolthelcontrary,litlisl anticipatedlthatlalbusinesslentityl willlcontinueltoloperatelindefinitely.l 13)Balancelsheet,lIncomelstatement,lStatementloflcashlflows,lS tatementloflshareholders'lequity. 14)Inlorderltolprovidelconsistency,lalconceptuallframeworkl(almapl clearlyldefininglbeliefslorlstruc ture)lmustlbelprovided.lThislislthel foundationlforlalstrong,llogical,landlfairlsystem.lForlexample,linl debatinglaccountinglforlstock- basedlcompensation,lthelFASB'sl conceptuallframeworklexplainslthelrationalelforltreatinglstocklopti onslaslanlexpense.lBylrelatinglthelaccountinglforlsuchlcompensationltolthelpurposeloflfinanciallstat ementslandltheirlqualitativelcharacteristics,lthel FASBlcanldefendlitslpositionslwithoutlthelbiaslinheren tlinlsuchlcontroversiallissues.
- 7. Version 1 7 15)ThelSecuritieslandlExchangelCommissionlislalfederallagencylthatl haslthelauthorityltolsetla ccountinglstandards.lHowever,lthelSEClhasl alwayslreliedlonlalprivate- sectorlbody,lsuchlaslthelcurrentlFASB,ltol accomplishlthatltask. 16)ThelEmerginglIssueslTasklForcel(EITF)lactslaslalfilterlforlthelFASB.l Itlincludesl15lindividualslfroml publiclaccountinglandlprivatelindustryl alonglwithlalrepresentativelfromlthelFASBlandlanlSEClobserv er.lThel tasklforcelfocuseslonlemerginglissueslandlattemptsltolreachlalconsensus,l speedingluplthelsta ndard-settinglprocess. 17)ChangeslinlGAAPlcanlhavelsignificantldifferentialleffectslonl companies,linvestors,lcreditors,la ndlotherlinterestlgroups.lThelFASBl mustlgaugeltheleconomiclconsequencesloflalchangelinlaccountin glstandards.lThelprocesslbylwhichlfinanciallaccountinglstandardslarel createdlincludeslpubliclcomm entlandlsometimeslhearings.lUltimately,lal votelmustlbeltakenltolpasslalproposedlchangelinlGAAP.l Accountinglforl stock- basedlcompensationsl(options)landlpostretirementlhealthlcarel benefitslarelexampleslwherelaccou ntinglpracticeslhavelbeenlaffectedlbyl politicallinfluenceslonlGAAP. 18)ThelActlrequireslthelregulationloflauditorslandltheltypesloflservicesl theylfurnishltolclients,lincrea seslaccountabilityloflcorporatelexecutives,l addresseslconflictsloflinterestlforlauditorslandlsecuritiesla nalysts,landl requireslthatlcompaniesldocumentlandlreportlonltheladequacylofltheirl internallcontrols. lItlalsolrequireslauditorsltolexpresslanlopinionlonl management'slassessmentloflinternallcontrols,landl thelauditorslmustlalsol expressltheirlownlopinionlonlcompanylinternallcontrols. 19)Outsidelauditorsladdlcredibilityltolfinanciallstatements,lincreasingl thelconfidenceloflcapit allmarketlparticipantslwholrelylonlfinanciall statementslinlmakinglinvestmentlandlcreditldecision slandlrecommendations.
- 8. Version 1 8 20)Startinglinl2019,lauditlreportslincludeldescriptionsloflCriticallauditl mattersl(CAMs),lincluding ldiscussionloflhowlthelCAMlwasladdressedl inlthelaudit. 21)Materiality— Informationlislmaterialliflitlcanlhavelanleffectlonlal decisionlmadelbylaluser.lThus,lmaterialitylislanla spectloflrelevance.lIflanlitemlislnotlmaterial,lGAAPlneedlnotlbelfollowed.lForlexample,liflallargelc orporationlpurchasedlalwaterlcoolerlforloneloflitslcommonlareasl forl$120,lthelamountlcouldlbelex pensedlratherlthanlrecordedlaslanlassetl evenlthoughlthelcoolerlwilllbelusefullforlseverallyears.lMat erialitylislaljudgmentlcall.lMaterialitylislconcernedlwithlbothltheldollarlamountloflanlitemland/orlth elnatureloflanlitem.lItlwouldlprobablylbelmateriallifl Microsoftlreceivedl$1,000,000linlbribeslfroml alChineselcompanylforlitsltechnology.lAl$1,000,000lwrite- offlofloldlequipmentlwouldlprobablylbelimmateriallforlMicrosoft. 22)RelevancelandlFaithfullRepresentation.lRelevancelrequireslthatl informationlhavelpredictivelan dlconfirmatorylvalue,landlthatlitlbel material.lFaithfullrepresentationlrequireslthatltherelislagreeme ntlbetweenl almeasurelandlalreal- worldlphenomenonlthatlthelmeasurelislsupposedltol represent.lItlrequireslthatlthelinformationlbelco mplete,lneutral,landlfreel fromlerror. 23)Iflalcountrylexperienceslseverelinflation,lthislwouldlviolatelthel assumptionlthatldollarlamoun tslarelconstantlylvalued.lThislwouldllimitl thelusefulnesslofladdinglnumberslinlfinanciallstatements,l becausel(forl instance)lcostslatldifferentltimeslarelnotlcomparablelwithoutladjustingl forlchangesli nlpurchasinglpower. 24)Periodicity— Thellifeloflalcompanylcanlbeldividedlintolartificiall periodsltolprovideltimelylinformationltole xternallusers. Monetarylunit— InlthelUnitedlStates,lfinanciallstatementlelementsl shouldlbelmeasuredlinltermsloflthelU.S.ldollar.lItla ssumeslthatlthelvaluel oflaldollarlislstableloverltime.
- 9. Version 1 9 25)Historicallcost— Almeasurementlattributelunderlwhichlassetlandl liabilitylmeasurementslarelbasedlonlthelamountlg ivenlorlreceivedlinlanlexchangeltransaction. 26)Fairlvaluelisldefinedlaslthelpricelthatlwouldlbelreceivedltolselllassetsl orlpaidltoltransferlalliab ilitylinlanlorderlyltransactionlbetweenlmarketl participantslatlthelmeasurementldate. 27)Historically,lfinanciallaccountinglreliedlonltransactionlamountsl (historicallcost)laslthelfundament allmeasurementlapproachlforlreportingl assetslandlliabilities.lAslmarketslhavelmatured,litlislmorelr elevantlandlfeasibleltolreportlsomelassetslandlliabilitieslatltheirlfairlvalues,lparticularlyliflsuchlite mslhavelalreadylmarketlthatlislactive. 28)a.Historicallcost:lthelamountlgivenlorlreceivedlinlanlexchangel transaction. b.Netlrealizablelvalue:lthelnetlamountloflcashlintolwhichlanlassetlisl expectedltolbelconverte dlinlthelordinarylcourseloflbusiness. c.Currentlcost:lthelcostlthatlwouldlbelincurredltolpurchaselorlreproducel anlasset. d.Presentlvalue:lthelsumloflfuturelcashlflowsldiscountedlforltheltimel valueloflmoney. e. Fairlvalue:lthelpricelthatlwouldlbelreceivedltolselllassetslorltransferl liabilitieslinlanlorde rlylmarketltransaction.
- 10. Version 1 1 29)a.Quotedlmarketlpriceslinlactivelmarketslforlidenticallassetslorl liabilities. b.Inputslotherlthanlquotedlpriceslthatlarelobservablelforlthelassetlorl liability.lTheselinputslincludelq uotedlpriceslforlsimilarlassetslorl liabilitieslinlactivelorlinactivelmarketslandlinputslthatlarelderivedl principallylfromlorlcorroboratedlbylobservablelrelatedlmarketldata.l c.Unobservablelinputslthatlre flectlthelentity'slownlassumptionslaboutlthel assumptionslmarketlparticipantslwouldluselinlpricinglthe lassetlorlliabilityldevelopedlbasedlonlthelbestlinformationlavailablelinlthelcircumstances. 30)Underlthelrevenue/expenselapproach,lwelemphasizelprincipleslforl recognizinglrevenuesl andlexpenses,lwithlsomelassetslandlliabilitiesl recognizedlaslnecessaryltolmakelthelbalancelshe etlreconcilelwithlthel incomelstatement.lMuchloflourlaccountinglforlrevenueslandlexpenseslfollo wslthislrevenue/expenselapproach. Underlthelasset/liabilitylapproach,lonlthelotherlhand,lwelfirstlrecognizel andlmeasurelthelassetslan dlliabilitieslthatlexistlatlalbalancelsheetldatel and,lsecondly,lrecognizelandlmeasurelthelrevenues,le xpenses,lgains,landl losseslneededltolaccountlforlthelchangeslinltheselassetslandlliabilitiesl fromlthel previouslmeasurementldate.lTherefore,lwelshouldltryltol recognizelandlmeasurelassetslandlliabilities lappropriately,landlaslalresultl willlalsolcaptureltheirlinflowslandloutflowslinlalmannerlthatlprovides l relevantlandlrepresentationallylfaithfullinformationlaboutlrevenueslandlexpenses.
- 11. Version 1 10 31)ThelconceptuallframeworkslinlU.S.lGAAPlandlIFRSlarelverylsimilarl andlarelconverginglevenlmo relwithlongoingleffortslbylthelFASBlandl IASB.lHowever,linlU.S.lGAAP,lthelconceptuallframeworklpri marilylprovideslguidanceltolstandardlsettersltolhelplthemldeveloplhigh- qualityl standards.lInlIFRSlthelconceptuallframeworklguideslstandardlsetting,ll butlinladditionlitlislsu pposedltolprovidelalbasislforlpractitionersltolmakel accountingljudgmentslwhenlanotherlIFRSlstanda rdldoeslnotlapply.lAlso,l IFRSlemphasizesltheloverarchinglconceptloflthelfinanciallstatementsl provid inglal"truelandlfairlrepresentation"loflthelcompany.lU.S.lGAAPl doeslnotlincludelalsimilarlrequireme nt,lbutlU.S.lauditinglstandardslrequirelthislconsideration. 32) B 33) A 34) D 35) B 36) C 37) B Sharelpricelappreciationl=l$120,100l−l$101,000l=l$19,100 Rateloflreturnl=l($1,100ldividendsl+l$19,100lsharelpricelappreciation)l÷ $101,000linitiallinvestmentl=l20% 38) C Sharelpricelappreciationl=l$120,000l−l$100,000l=l$20,000 Rateloflreturnl=l($1,000ldividendsl+l$20,000lsharelpricelappreciation)l÷ $100,000linitiallinvestmentl=l21% 39) B 40) C 41) B 42) C 43) B 44) D
- 12. Version 1 11 45) B 46) A 47) C 48) D 49) D 50) C 51) B 52) C 53) A 54) C 55) D 56) D 57) D 58) B 59) A 60) D 61) D 62) A 63) A 64) B 65) A 66) A 67) C 68) B 69) A 70) B 71) C 72) B 73) B 74) D
- 13. Version 1 12 75) C 76) B 77) B 78) C 79) B 80) C 81) C 82) C 83) A 84) B 85) A 86) B 87) A 88) C 89) C 90) B 91) D 92) C 93) C 94) B 95) A 96) D 97) D 98) D 99) D 100) D 101) A 102) C 103) A 104) D
- 14. Version 1 13 105) D 106) C 107) C 108) C 109)lB 110)lC 111)lC 112)lA 113)lA 114)lD 115)lB 116)lD 117)lA 118)lD 119)lA 120)lB 121)lA 122)lC Revenues $l250,000 Expenses: Costloflgoodslsold $l90,000 Salaries 12,500 Interest 2,700 Insurance 3,650 108,850 Incomelbeforeltax 141,150 Incomeltaxlatl40% 56,460 Netlincome $l84,690 123)lB
- 15. Version 1 14 Cashlreceipts: Saleslrevenue Less:lAccountslreceivable $l305,000 20,000 $l285,000 Owners'linvestments 19,500 Notelpayable 19,500 Totallreceipts 324,000 Cashldisbursements: Purchases 96,500 Less:lAccountslpayable 28,100 $l68,400 Salarieslpaid 13,800 Interestlpaid 4,700 Insurancelpaid 8,700 Estimatedltaxeslpaid 74,260 Totallcashldisbursements 169,860 Endinglcashlbalance $l154,140 Estimatedltaxeslpaidl=lRevenueslofl$305,000llesslCostloflgoodslsoldlof $96,500llessl$13,800linlsalariesllessl$4,700linterestllessl$4,350lforl insurancel($8,700/2)lequal sl$185,650.lTaxeslatl40%larel$74,260. 124)lA Revenues Expenses: $l369,000 Costloflgoodslsold $l170,000 Salarieslexpense 27,200 Interestlexpense 1,890 Insurancelexpense 4,250 203,340
- 16. Version 1 15 Netlincome $l165,660 125)lC Cashlreceipts: Saleslrevenue $l375,000 Less:lAccountslreceivable 45,900 $l329,100 Owners'linvestments 41,000 Noteslpayable 30,000 Totallreceipts 400,100 Cashldisbursements: Purchases 195,000 Less:lAccountslpayable 39,400 155,600 Salarieslpaid 27,500 Interestlpaid 3,600 Insurancelpaid 9,600 Totallcashldisbursements 196,300 Endinglcashlbalance $l203,800 126) C BeginninglbalancelinlCashl+lNetlincreaselinlCashl=lEndinglbalancelinl Cash Therefore,lbeginninglbalancelinlCashl=lEndinglbalancelinlCashl−lNet increaselinlCash =l$1,122l−l$12l=l$1,110 127) D Totallassetsl=lTotallliabilitiesl+lTotallStockholders'lequity Therefore,lTotallliabilitiesl=lTotallassetsl−lTotallStockholders'lequity =l$4,552l−l$453l=l$4,099 128) A
- 17. Version 1 16 Grosslprofitl=lNetlsalesl−lCostloflgoodslsold Therefore,lCostloflgoodslsoldl=lNetlsalesl−lGrosslprofitlCostloflgoodslsoldl=l$1 0,835l−l$2,503l=l$8,332 129) A Netlincomel=lGrosslprofitl−lOperatinglexpensesl+lOtherlincome (expense),lnet =l$2,543l−l$2,065l+l$(29)l=l$449 130) TRUE 131) FALSE 132) FALSE 133) TRUE 134) FALSE 135) FALSE 136) TRUE 137) FALSE 138) TRUE 139) FALSE 140) TRUE 141) FALSE 142) TRUE 143) TRUE 144) FALSE 145) TRUE 146) FALSE 147) TRUE 148) TRUE 149) TRUE 150) FALSE 151) FALSE 152) TRUE
- 18. Version 1 17 153) FALSE 154) FALSE 155) FALSE 156) TRUE 157) TRUE 158) FALSE 159) TRUE 160) FALSE AnswerlKeylIslatlthelEndloflEachlChapter Studentlname:_l 1) Listedlbelowlarelfiveltermslfollowedlbylallistloflphraseslthatldescribelorlcharacterizel eachloflthelterms.lMatchleachlphraselwithlthelcorrectlterm. TERM PHRASE 1. Prepayments Assetslorlliabilities createdlwhenlrecognitionl preced eslcashlflows. Numberlforltermlthat lmatcheslthelphrase. l blank 2. Post- closingltriallbalanc e 3. Accruals 4. Unadjustedltriallbala nce Assetslorlliabilitiesl createdlwhe nlcashlflowsl precedelrecognitio n. Allistloflalllgenerallledgerlacc ountslandltheirl balanceslpreparedlaf terlalll adjustinglentrieslhavelbeenlrec orded. Allistloflgenerallledgerlaccountslandlt heirlbalancesl atlalparticularldatelaft erl recordinglallltransactionsl duringlth elperiodlbutl beforelanyladjustingl ent ries. l blank l blank l blank 5. Adjustedltrial Allistloflalllpermanent l blank
- 19. Version 1 18 balance accountslandltheirlbalancesl aft erlclosinglentrieslhavelbeenlrecorded . QuestionlDetails AACSBl:lReflectivelThinkinglAccessi bilityl:lKeyboardlNavigationlAccessi bilityl:lScreenlReaderlCompatiblelA ICPAl:lBBlCriticallThinking Bloom'sl:lUnderstandlDi fficultyl:l1lEasy LearninglObjectivel:l02-01lUnderstandlroutineleconomiclevents-transactions- andldetermineltheirleffectl LearninglObjectivel:l02- 04lPostltheleffectslofljournallentriesltolgenerallledgerlaccountslandlpreparel Learningl Objectivel:l02-05lIdentifylandldescribeltheldifferentltypeslofladjustingljournallentries. LearninglObjectivel:l02- 06lRecordladjustingljournallentrieslinlgeneralljournallformat,lpostlentries,l LearninglObj ectivel:l02-08lExplainlthelclosinglprocess. Topicl:lAccountlrelationshipslandlrecords Topicl:lAnalyzelupdating- IdentifyltypelofladjustmentlTopicl:lTriallbalance-- Adjusted Topicl:lThelclosinglprocessllT opicl:lTriallbalance-- UnadjustedlTypel:lStatic Gradablel:lmanual 2) Listedlbelowlarelfiveltermslfollowedlbylallistloflphraseslthatldescribelorlcharacterizel eachloflthelterms.lMatchleachlphraselwithlthelcorrectlterm. TERM PHRASE 1. Balancelsheet Reportsloperating, investing,landlfinancinglactivities. Numberlforltermlthat lmatcheslthelphrase. l blank 2. Adjustingle ntries Recordslinternalltransaction
- 20. Version 1 19 slnotlpreviouslylr eported. 3. Expenses lblank Presentslfinanciallpositionl onlalpartic ularldatelshowinglresourceslequall cla imsltolresources. l blank
- 21. Version 1 20 4. Statementloflca shlflows 5. Post- closingltriallbalanc e Representsloutflowslofl resourc eslincurredltol generatelrevenu es. Allistloflalllpermanentl accountslandlth eirlbalancesl afterlclosinglentrieslhave lbeenlrecorded. l blank l blank QuestionlDetails AACSBl:lReflectivelThinkinglAccessi bilityl:lKeyboardlNavigationlAccessi bilityl:lScreenlReaderlCompatiblelA ICPAl:lBBlCriticallThinking Bloom'sl:lUnderstandlDiff icultyl:l1lEasy LearninglObjectivel:l02-01lUnderstandlroutineleconomiclevents-transactions- andldetermineltheirleffectlLearninglObjectivel:l02- 02lDescribelthelstepslinlthelaccountinglprocessinglcycle. LearninglObjectivel:l02- 05lIdentifylandldescribeltheldifferentltypeslofladjustingljournallentries.lLearninglObjec tivel:l02-07lDescribelthelfourlbasiclfinanciallstatements. LearninglObjectivel:l02- 08lExplainlthelclosinglprocess.l Topicl:lAccountlr elationshipslandlrecords Topicl:lAccountinglprocessinglcyclelsteps Topicl:lAnalyzelupdating- IdentifyltypelofladjustmentlTopicl:lFinanciallstat ement--Cashlflow Topicl:lFinanciallstatement-- Balancelsheetl Topicl:lThelclosinglpro cess Typel:lStaticlGra dablel:lmanual 3) Listedlbelowlarelfiveltermslfollowedlbylallistloflphraseslthatldescribelorlcharacterizel eachloflthelterms.lMatchleachlphraselwithlthelcorrectlterm.
- 22. Version 1 21 TERM PHRASE Numberlforltermlthat lmatcheslthelphrase. 1. Periodicls ystem Increaseslinlequitylfromlperipherallo rlincidentalltransactionsloflanlentity. l blank 2. Prepayments Decreaseslinlequitylarising fromlperipherallor l blank
- 23. Version 1 20 3. Perpetualls ystem 4. Losses 5. Gains incidentalltransactionslofl anlentity. Thelcostloflinventorylpurchasedlislre cordedlinlaltemporarylaccountlcalle dlpurchases. Whenlinventorylislsold,lthelinventory laccountlisl decreasedlbylthelcostloflthe litemlsold. Whenlcashlflowlprecedesl either lexpenselorlrevenuelrecognition. l blank l blank l blank QuestionlDetails AACSBl:lReflectivelThinkinglAccessi bilityl:lKeyboardlNavigationlAccessi bilityl:lScreenlReaderlCompatiblelA ICPAl:lBBlCriticallThinking Bloom'sl:lUnderstandlDiff icultyl:l2lMedium LearninglObjectivel:l02-01lUnderstandlroutineleconomiclevents-transactions- andldetermineltheirleffectlLearninglObjectivel:l02- 03lAnalyzelandlrecordltransactionslusingljournallentries. LearninglObjectivel:l02- 05lIdentifylandldescribeltheldifferentltypeslofladjustingljournallentries.lTopicl:lAnaly zelupdating-Identifyltypelofladjustment Topicl:lAccountinglequation Topicl:lAnalyzeltransaction- RecordljournallentrylTypel:lStatic Gradablel:lmanual 4) Listedlbelowlarelfiveltermslfollowedlbylallistloflphraseslthatldescribelorlcharacterizel eachloflthelterms.lMatchleachlphraselwithlthelcorrectlterm. TERM PHRASE Numberlforltermlthat lmatcheslthelphrase.
- 24. Version 1 20 1. Generall ledger Refersltolthelrightlsideloflanlaccount. l blank 2. Credit Assetlandlexpenselaccounts l blank
- 25. Version 1 21 3. Generall journal normallylhavelthisltypelofl balance. Usedltolrecordlanyltypelofl transactionl inlchronologicallorder. l blank 4. Debit Containslalllthelaccountsloflan blanklentity. 5. Closingl entries Transferlthelbalanceslofl temporarylacco untsltolthel retainedlearningslaccountland lreduceslthelbalanceslofltheltemporaryl accountsltolzero. l blank QuestionlDetails AACSBl:lReflectivelThinkinglAccessi bilityl:lKeyboardlNavigationlAccessi bilityl:lScreenlReaderlCompatiblelA ICPAl:lBBlCriticallThinking Bloom'sl:lUnderstandlDi fficultyl:l1lEasy LearninglObjectivel:l02-01lUnderstandlroutineleconomiclevents-transactions- andldetermineltheirleffectlLearninglObjectivel:l02- 02lDescribelthelstepslinlthelaccountinglprocessinglcycle. LearninglObjectivel:l02- 08lExplainlthelclosinglprocess.l Topicl:lAccountlrel ationshipslandlrecords Topicl:lAccountinglprocessinglcyclelst epslTopicl:lThelclosinglprocess Typel:lStaticlGra dablel:lmanual 5) Listedlbelowlarelfiveltermslfollowedlbylallistloflphraseslthatldescribelorlcharacterizel eachloflthelterms.lMatchleachlphraselwithlthelcorrectlterm. TERM PHRASE Numberlforltermlthat lmatcheslthelphrase. 1. Liabilities Transferlbalanceslfrom j
- 26. Version 1 22 ournalsltolledgers. l blank 2. Retainedl earnings Recordlchronologicallyltheleffectslof ltransactionslin l blank
- 27. Version 1 23 debit/creditlform. 3. Journalize Refersltolclaimsltolthe assetsloflanlentitylbylitslcreditors. l blank 4. Post 5. Speciallj ournals Representslthelcumulativelamount loflnetlincome,llessl distributionsltol sh areholders. Usedltolrecordlrepetitivel typesloflt ransactions. l blank l blank QuestionlDetails AACSBl:lReflectivelThinkinglAccessi bilityl:lKeyboardlNavigationlAccessi bilityl:lScreenlReaderlCompatiblelA ICPAl:lBBlCriticallThinking Bloom'sl:lUnderstandl Difficultyl:l1lEasy LearninglObjectivel:l02-01lUnderstandlroutineleconomiclevents-transactions- andldetermineltheirleffectlLearninglObjectivel:l02- 02lDescribelthelstepslinlthelaccountinglprocessinglcycle. LearninglObjectivel:lAppendixl2ClSubsidiarylLedgerslandlSpeciallJo urnals.l Topicl:lAccountlrelationshipslandlrecords Topicl:lAccountinglprocessinglcyclelsteps lTopicl:lSubsidiarylledgerslandlSpeciallj ournalslTopicl:lAccountinglequation Typel:lStaticlGra dablel:lmanual 6) Listedlbelowlarelfiveltermslfollowedlbylallistloflphraseslthatldescribelorlcharacterizel eachloflthelterms.lMatchleachlphraselwithlthelcorrectlterm. TERM PHRASE 1. Sourcel documents Refersltolinflowsloflassetslfromlthelsal eloflgoodslandlservices. Numberlforltermlthat lmatcheslthelphrase. l blank
- 28. Version 1 24 2. Revenues Usedltolidentifylexternal transactions. l blank
- 29. Version 1 25 3. Transactionla nalysis 4. Deferredlr evenues 5. Speciallj ournals Usedltolrecordlrepetitivel typeslofltrans actions. Liabilitieslcreatedlbylal customer'slprep ayment. Determinesltheleffectsloflanleventlinlte rmsloflthel accountinglequation. l blank l blank l blank QuestionlDetails AACSBl:lReflectivelThinkinglAccessi bilityl:lKeyboardlNavigationlAccessi bilityl:lScreenlReaderlCompatiblelA ICPAl:lBBlCriticallThinking Bloom'sl:lUnderstandl Difficultyl:l1lEasy LearninglObjectivel:l02-01lUnderstandlroutineleconomiclevents-transactions- andldetermineltheirleffectlLearninglObjectivel:l02- 02lDescribelthelstepslinlthelaccountinglprocessinglcycle. LearninglObjectivel:l02- 03lAnalyzelandlrecordltransactionslusingljournallentries.l LearninglO bjectivel:lAppendixl2ClSubsidiarylLedgerslandlSpeciallJournals. Topicl:lAccountinglprocessinglcyclelsteps lTopicl:lSubsidiarylledgerslandlSpeciallj ournalslTopicl:lAccountinglequation Topicl:lAnalyzeltransaction- RecordljournallentrylTypel:lStatic Gradablel:lmanual 7) Listedlbelowlarel10ltermslfollowedlbylallistloflphraseslthatldescribelorlcharacterizelthel terms.lMatchleachlphraselwithlthelcorrectlterm. TERM PHRASE 1. Unadjustedltriallbala nce 2. Accruedlreceiv ables Numberlforltermlthat lmatcheslthelphrase. Refersltolinflowslofl assetslf romlthelsalelofl goodslandls ervices.
- 30. Version 1 26 Recordsltheleffectsloflint ernalltransactions. l blank l blank 3. Deferredlrevenues Cashlreceivedlfromla customerlinladvancelof l blank If u want this test bank or solution manual email me mboogey861@ gmail.com. To receive all chapters in pdf format If u want this test bank or solution manual email me mboogey861@ gmail.com. To receive all chapters in pdf format