Professional Documents
Culture Documents
2
Copyright © 2015 Pearson Education, Inc.
3) Assets include cash, land, and accounts payable.
Answer: FALSE
Diff: 2
LO: 2-2
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
5) A record of all the changes in a particular asset during a period of time is found in a(n):
A) transaction.
B) trial balance.
C) prior period's balance sheet.
D) account.
Answer: D
Diff: 1
LO: 2-2
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
3
Copyright © 2015 Pearson Education, Inc.
7) Which account includes bank account balances in multiple checking accounts?
A) Accounts Receivable
B) Notes Receivable
C) Cash
D) Prepaid Expenses
Answer: C
Diff: 1
LO: 2-2
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement
9) Notes payable, accounts payable, taxes payable and salaries payable are all examples of:
A) liabilities.
B) revenues.
C) expenses.
D) assets.
Answer: A
Diff: 1
LO: 2-2
AACSB: Reflective Thinking
AICPA Bus Persp: Legal/Regulatory
AICPA Functional: Measurement, Reporting
1) If a company declares and pays a dividend to its stockholders, both cash and expenses will
decrease.
Answer: FALSE
Diff: 2
LO: 2-3
AACSB: Analytical Thinking
AICPA Bus Persp: Strategic/Critical Thinking
AICPA Functional: Measurement