kieso15e_testbank_ch03

CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM IFRS questions are available at te en! o" tis #a$ter%

TRUE&FA'SE Ans(er F T F F F F F T T F T T F T F F T F F F

No% 1. 2. 3. 4. 5. '. . +. . 1. 11. 12. 13. 14. 15. 1'. 1. 71+. 71. 72.

)es#ri$tion Recording transactions. Nominal accounts. Real (permanent) accounts. Internal event example. ia!ilit" and stoc#$olders% e&uit" accounts. e!its and credits. *teps in accounting c"cle. ,urpose o- trial !alance. /eneral 0ournal. ,osting and trial !alance. d0usting entries -or prepa"ments. xample o- accrued expense. oo# value o- deprecia!le assets. Reporting ending retained earnings. ,ostclosing trial !alance. ,osting closing entries. 6losing entries and Income *ummar". ccrual !asis accounting. ,urpose o- reversing entries. d0usted trial !alance.

MU'TIP'E CHOICE*Con#e$tual Ans(er d d d d d d ! a c c a a a !

No% 21. 22. 23. 24. 25. 2'. 2. 2+. 2. 3. 31. 32. 33. 34.

)es#ri$tion ,urpose o- an accounting s"stem. e-inition o- posting. ,urpose o- an accounting s"stem. oo# o- original entr". ,urpose o- trial !alance. Identi-ication o- a real account. Identi-ication o- a temporar" account. Temporar" accounts. ou!leentr" accounting s"stem. ou!leentr" s"stem. --ect on stoc#$olders% e&uit". Transaction anal"sis. ccounting e&uation. ccounting process vs. accounting c"cle.

Test +an, "or Inter-e!iate A##ountin./ Fi"teent E!ition

301

d d d c d d a ! c d d d ! ! d c a ! d a a a a ! a a d c a d c d c d d d ! c ! ! c c d d c c c d d ! d

35. 3'. 3. 3+. 3. 4. 41. 42. 43. 44. 45. 4'. 4. 4+. 4. 5. 51. 52. 53. 54. 55. 5'. 5. 5+. 5. '. '1. '2. '3. '4. '5. ''. '. '+. '. . 1. 2. 3. 4. 5. '. . 7+. 7. 7+. 7+1. 7+2. 7+3. 7+4. 7+5.

ccounting c"cle steps. 6riteria -or recording events. Identi-ication o- a recorda!le event. Identi-ication o- internal events. xternal events. imitations o- trial !alance. /eneral 0ournal. 8ournal entr". 8ournal entr". 8ournal entr". Im!alance in a trial !alance. ,urpose o- unad0usted trial !alance. Format o- ad0usting entr". xample o- accrued expense. ccrual!asis o- accounting. ccrued expense ad0usting entr". --ect o- not recording accrued expense. escription o- a de-erral. --ect o- not recording accrued revenue. --ect o- not recording depreciation expense. Timing o- ad0ustments. ,repaid expense. xpiration o- prepaid expenses. --ect o- depreciation entr". 9nearned revenue relations$ips. 6omputation o- interest expense -or ad0usting entr". ,urpose o- ad0usting entries. :atc$ing principle. ,repaid items. ccrued items. e-inition o- unearned revenue. e-inition o- accrued expense. d0usting entr" -or accrued expense. Factors to consider in estimating depreciation. d0usting entries. --ect o- ad0usting entries. ,repaid expense and t$e matc$ing principle. ccrued revenue and t$e matc$ing principle. 9nearned revenue and t$e matc$ing principle. d0usted trial !alance. 6losing process. ,urpose o- closing entries. 6as$ collections vs. revenue recogni;ed. 6as$!asis revenue. 6onvert cas$ receipts to service revenue. 6onvert cas$ paid -or operating expenses. ,urpose o- reversing entries. Identi-ication o- reversing entries. Identi-ication o- reversing entries. d0usting entries reversed. Reporting inventor" on a