QUIZ CH 01 CH 02
Wenzhou-Kean University Fall 2013 ACCT 2200
30 MINUTE QUIZ-CH.1/CH.2
True/False
Circle the correct answer
T
1.
Accounting is the information system that identifies, records, and communicates the economic events of an organization to interested users.
True
T
2.
Bookkeeping deals with the record-keeping process and is only one aspect of accounting.
True
T
3.
4.
5.
6.
7.
8.
False
Collection of an accounts receivable will increase both cash and accounts receivable.
True
F
False
The economic entity assumption requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities.
True
F
False
Net income is the excess of revenues over expenses for the accounting period.
True
T
False
The Financial Accounting Standards Board is the primary accounting standard-setting body in the United States.
True
T
False
Internal users are those who manage the business.
True
T
False
False
An expense paid with cash would result in an equal decrease in liabilities and owner’s equity. True
False
1
Wenzhou-Kean University Fall 2013 ACCT 2200
F
9.
Liabilities represent the ownership claim on total assets.
True
F
10.
Certified Public Accountants are only permitted to prepare audit reports and tax returns.
True
F
11.
12.
13.
14.
15.
16.
False
The basic steps in the recording process are (1) to analyze each transaction, (2) to enter the transaction in a journal, and (3) to transfer the journal entry to the appropriate ledger accounts. True
T
False
The ledger is the entire group of accounts maintained by a company.
True
T
False
An account will have a credit balance if the total debit amounts exceed the total credit amounts. True
T
False
The owner’s capital account is increased by credits.
True
F
False
Assets are increased by debits and liabilities are decreased by credits.
True
T
False
False
Transferring journal entries to the ledger accounts is called posting and
30 MINUTE QUIZ-CH.1/CH.2
True/False
Circle the correct answer
T
1.
Accounting is the information system that identifies, records, and communicates the economic events of an organization to interested users.
True
T
2.
Bookkeeping deals with the record-keeping process and is only one aspect of accounting.
True
T
3.
4.
5.
6.
7.
8.
False
Collection of an accounts receivable will increase both cash and accounts receivable.
True
F
False
The economic entity assumption requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities.
True
F
False
Net income is the excess of revenues over expenses for the accounting period.
True
T
False
The Financial Accounting Standards Board is the primary accounting standard-setting body in the United States.
True
T
False
Internal users are those who manage the business.
True
T
False
False
An expense paid with cash would result in an equal decrease in liabilities and owner’s equity. True
False
1
Wenzhou-Kean University Fall 2013 ACCT 2200
F
9.
Liabilities represent the ownership claim on total assets.
True
F
10.
Certified Public Accountants are only permitted to prepare audit reports and tax returns.
True
F
11.
12.
13.
14.
15.
16.
False
The basic steps in the recording process are (1) to analyze each transaction, (2) to enter the transaction in a journal, and (3) to transfer the journal entry to the appropriate ledger accounts. True
T
False
The ledger is the entire group of accounts maintained by a company.
True
T
False
An account will have a credit balance if the total debit amounts exceed the total credit amounts. True
T
False
The owner’s capital account is increased by credits.
True
F
False
Assets are increased by debits and liabilities are decreased by credits.
True
T
False
False
Transferring journal entries to the ledger accounts is called posting and