【正文】 FALSE30.An owner39。Accounts are normally decreased by debits.Double entry accounting requires that each transaction affect, and be recorded in, at least two accounts.Debits increase asset and expense accounts.TRUE19.TRUE16.FALSe13.FALSE9.An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.Source documents provide evidence of business transactions and are the basis for accounting entries.TRUEChapter 002 Analyzing and Recording TransactionsTrue / False Questions3.TRUE5.TRUE7.As prepaid expenses are used, the expired costs of the assets bee expenses.Cash withdrawn by the owner of a proprietorship should be treated as an expense of the business.An account balance is the difference between the debits and credits for an account including any beginning balance.Increases in liability accounts are recorded as debits.TRUE21. TRUE24.FALSE26.s capital account normally has a debit balance.A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.TRUEIf a pany provides services to a customer on credit the selling pany should credit Accounts Receivable.The debt ratio helps to assess the risk a pany has of failing to pay its debts and is helpful to both its owners and creditors.TRUEA pany that finances a relatively large portion of its assets with liabilities is said to have a high degree of financial leverage.Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is %.FALSE44.TRUE46.TRUE48.49.50.51.52.AACSB: AnalyticAICPA FN: Decision MakingDifficulty: MediumLearning Objective: P2AACSB: AnalyticAICPA FN: Decision MakingDifficulty: MediumLearning Objective: P2AICPA FN: Decision MakingDifficulty: MediumLearning Objective: P2AACSB: AnalyticAICPA FN: Decision MakingDifficulty: MediumLearning Objective: P2AICPA FN: Decision MakingDifficulty: MediumLearning Objective: P3s address)An ine statement reports the revenues earned less expenses incurred by a business over a period of time.The balance sheet reports the financial position of a pany at a point in time.Multiple Choice QuestionsAnalysis of business transactions and source documents.B.Preparation of the trial balance.A.Gives rise to an entry in the accounting process.E.A.Are based on accounting entries.E.Various types of documents and other papers that panies use when they conduct their business:Are the source of information for recording accounting entries.D.65.Posting.C.AICPA FN: Decision MakingDifficulty: EasyLearning Objective: C3A revenue account.B.s capital account.D.69.Revenues that have been earned but not yet collected in cash.C. capital.A.Assets that represent prepayments of future expenses.E.A written promise to pay a definite sum of money on a specified future date is a(n):Credit account.D.72.Book of original entry.C.AICPA FN: Decision MakingDifficulty: MediumLearning Objective: C3A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.B.A record containing all accounts and their balances used by a pany.A.Chart of accounts.E.The numbering system used in a pany39。Is determined by generally accepted accounting principles.C.AICPA FN: Decision MakingDifficulty: MediumLearning Objective: C4An increase in an account.B.An increase to a liability account.A.Decrease.E.A credit is used to record:An increase in an unearned revenue account.D.80.Capital account.C.AICPA FN: Decision MakingDifficulty: EasyLearning Objective: C5A.Owner, Withdrawals.E.A debit is used to record:An increase in a revenue account.D.s withdrawals account.A.Decreases asset and expense accounts, and increases liability, owner39。AACSB: AnalyticAICPA FN: Decision MakingDifficulty: MediumLearning Objective: C5That records each transaction twice.B.That insures that errors never occur.88.Debit to Unearned Management Fees for $60,000.B.Debit to Management Fees Earned for $60,000.A.Credit to Accounts Payable.E.An asset created by prepayment of an expense is:Recorded as a credit to an unearned revenue account.D.91.C.AACSB: AnalyticAICPA FN: Decision MakingDifficulty: MediumLearning Objective: A193.A $4,300 debit balance.C.AACSB: AnalyticAICPA FN: Decision MakingDifficulty: HardLearning Objective: A1$ 5,000.B.$32,000.$18,000 + Credit Sales $52,000 = $13,000Credit Sales = $47,000A.$0.E. The following transactions occurred during July: 1. Received $900 cash for services provided to a customer during July. 2. Received $2,200 cash investment from Barbara Hanson, the owner of the business. 3. Received $750 from a customer in partial payment of his account receivable which arose from sales in June. 4. Provided services to a customer on credit, $375. 5. Borrowed $6,000 from the bank by signing a promissory note. 6. Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July? $ 2,525. D.97.Debit Tim Jones, Salary and credit Cash.C.AACSB: AnalyticAICPA FN: Decision MakingDifficulty: HardLearning Objective: A1A. $43,430. E.At the beginning of January of the current year, Thomas Law Center39。$49,700.C.AACSB: AnalyticAICPA FN: Decision MakingDifficulty: HardLearning Objective: A1$83,900.B.$4,900.Beginning balance of $77,300 + $43,500 of purchases on account $36,900 of payments on account = $83,900.s Lawn Care Service reported owner39。A decrease of $9,500.B.Impossible to determine from the information provid