[Question] 62. For what reason do most sellers require customers to have their receipts in order to exchange or return purchased items? A. The receipt contains coded information that the seller needs to prepare and analyze the trial balance. B. Sellers wish to ensure that the sale in question was rung up on the register in the first place. C. This is a legal requirement mandated by a federal law. D. The receipt is serving as a promissory note. E. To create an environment in which customers do not want to return items. Answer: B Blooms Taxonomy: Apply AACSB: Analytic AACSB: Communication AICPA BB: Critical Thinking AICPA BB: Industry AICPA FN: Measurement AICPA FN: Reporting Difficulty: 3 Hard Learning Objective: 02-C1 Topic: Source Documents [Question] 63. A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n): A. Journal B. Posting C. balance D. Account E. Chart of accounts Answer: D Blooms Taxonomy: Remember AACSB: Analytic AACSB: Communication AICPA BB: Critical Thinking AICPA BB: Industry AICPA FN: Measurement AICPA FN: Reporting Difficulty: 1 Easy Learning Objective: 02-C2 Topic: Account
[Question] 85. Double-entry accounting is an accounting system: A. That records each transaction twice. B. That records the effects of transactions and other events in at least two accounts with equal debits and credits. C. In which the impact of each transaction is checked twice to ensure there are no errors. D. That may only be used if T-accounts are used. E. That records the effects of transactions on at least two financial statements. Answer: B Blooms Taxonomy: Apply AACSB: Analytic AACSB: Communication AICPA BB: Critical Thinking AICPA BB: Industry AICPA FN: Measurement AICPA FN: Reporting Difficulty: 3 Hard Learning Objective: 02-C4 Topic: Double Entry Accounting System Topic: Debit Topic: Credit Topic: Common Stock Topic: Retained Earnings Topic: T Account Topic: Financial Statements Topic: Transaction Analysis
4. Posting reference column A simple form used as a helpful tool in understanding the effect of transactions and events on specific accounts. 9 5. Posting Liabilities created when customers pay in advance for products or services; satisfied by delivering the products or services in the future. 1 6. Trial Balance A journal entry that affects at least three accounts. 7 7. Compound journal entry A column in journals where individual account numbers are entered when entries are posted to ledger accounts. 4 8. Account The process of transferring journal entry information to the ledger. 5 9. T-account A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense account. 8 10. General journal A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances. 6 Blooms Taxonomy: Remember AACSB: Analytic AACSB: Communication AICPA BB: Critical Thinking AICPA BB: Industry AICPA FN: Measurement AICPA FN: Reporting Difficulty: 1 Easy Learning Objective: 02-C1 Learning Objective: 02-C4 Learning Objective: 02-P Topic: Unearned Revenue Topic: Chart of Accounts Topic: Note Receivable Topic: Unearned Revenue Topic: Posting Topic: Trial Balance Topic: Compound Journal Entry Topic: Account Topic: T account Topic: Journal [Question]