Professional Documents
Culture Documents
Test Bank
Visit to download the full and correct content document:
https://testbankdeal.com/download/financial-accounting-2nd-edition-kemp-test-bank/
Financial Accounting 2nd Edition Kemp Test Bank
2.1 Questions
1) Account titles such as Marketing Expense and Depreciation Expense would be numbered
starting with a 3.
Answer: FALSE
Diff: 1
LO: 2-1
EOC Ref: S2-4
AACSB: Analytic Skills
AICPA Business: Strategic/Critical Thinking
AICPA Functional: Reporting
4) The stockholders' equity section would include the accounts such as retained earnings and
revenues.
Answer: TRUE
Diff: 1
LO: 2-1
EOC Ref: S2-2
AACSB: Analytic Skills
AICPA Business: Strategic/Critical Thinking
AICPA Functional: Reporting
1
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
6) Obligations that are owed to others due to past transactions are categorized as:
A) stockholders' equity.
B) expenses.
C) assets.
D) liabilities.
Answer: D
Diff: 1
LO: 2-1
EOC Ref: Vocabulary
AICPA Business: Strategic/Critical Thinking
AICPA Functional: Decision Modeling
7) Monies owed to a company on a written promise to pay a fixed amount of money by a certain
date would be called a(n):
A) note payable.
B) note receivable.
C) account payable.
D) account receivable.
Answer: A
Diff: 1
LO: 2-1
EOC Ref: S2-2
AICPA Business: Strategic/Critical Thinking
AICPA Functional: Decision Modeling
8) Items such as salaries and interest that have been incurred, but not yet paid, are called:
A) accrued assets.
B) accrued liabilities.
C) accrued revenues.
D) accrued notes.
Answer: B
Diff: 1
LO: 2-1
EOC Ref: S2-2
AACSB: Reflective Thinking
AICPA Business: Strategic/Critical Thinking
AICPA Functional: Decision Modeling
2
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
9) The order in which accounts appear in the chart of accounts is:
A) liabilities, assets, revenues, stockholders' equity, expenses.
B) stockholders' equity, expenses, revenue, liabilities, assets.
C) assets, stockholders' equity, revenues, expenses, liabilities.
D) assets, liabilities, stockholders' equity, revenues, expenses.
Answer: D
Diff: 1
LO: 2-1
EOC Ref: S2-2
AACSB: Analytic Skills
AICPA Business: Strategic/Critical Thinking
AICPA Functional: Measurement and Reporting
3
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Another random document with
no related content on Scribd:
alternate format must include the full Project Gutenberg™ License
as specified in paragraph 1.E.1.
• You pay a royalty fee of 20% of the gross profits you derive from
the use of Project Gutenberg™ works calculated using the method
you already use to calculate your applicable taxes. The fee is owed
to the owner of the Project Gutenberg™ trademark, but he has
agreed to donate royalties under this paragraph to the Project
Gutenberg Literary Archive Foundation. Royalty payments must be
paid within 60 days following each date on which you prepare (or
are legally required to prepare) your periodic tax returns. Royalty
payments should be clearly marked as such and sent to the Project
Gutenberg Literary Archive Foundation at the address specified in
Section 4, “Information about donations to the Project Gutenberg
Literary Archive Foundation.”
• You provide a full refund of any money paid by a user who notifies
you in writing (or by e-mail) within 30 days of receipt that s/he does
not agree to the terms of the full Project Gutenberg™ License. You
must require such a user to return or destroy all copies of the works
possessed in a physical medium and discontinue all use of and all
access to other copies of Project Gutenberg™ works.
• You comply with all other terms of this agreement for free
distribution of Project Gutenberg™ works.
1.F.
1.F.4. Except for the limited right of replacement or refund set forth
in paragraph 1.F.3, this work is provided to you ‘AS-IS’, WITH NO
OTHER WARRANTIES OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.
Please check the Project Gutenberg web pages for current donation
methods and addresses. Donations are accepted in a number of
other ways including checks, online payments and credit card
donations. To donate, please visit: www.gutenberg.org/donate.
Most people start at our website which has the main PG search
facility: www.gutenberg.org.