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1/9TESTFORCHAPTER1-4注：判断题红色标记句为错句，选择题加下划线选项为正确答案PARTITRUEORFALSE1)Accountingisaninformationandmeasurementsystemthatidentifies,records,andcommunicatesrelevant,reliable,andcomparableformationaboutanorganization'sbusinessactivities.2)Managerialaccountingistheareaofaccountingthatprovidesinternalreportstoassistthedecisionmakingneedsofinternalusers.3)Theprimaryobjectiveoffinancialaccountingistoprovidegeneralpurposefinancialstatementstohelpexternalusersanalyzeandinterpretanorganization'sactivities.4)Internalusersincludelenders,shareholders,brokersandmanagers.5)Inthepartnershipformofbusiness,theownersarecalledstockholders.6)Thebusinessentityprinciplemeansthatabusinesswillcontinueoperatingforanindefiniteperiodoftime.7)Asageneralrule,revenuesshouldnotberecognizedintheaccountingrecordsuntilitisreceivedincash.8)Accruedexpensesattheendofoneaccountingperiodareexpectedtoresultincashpaymentsinafutureperiod.9)Theideathatabusinesswillcontinuetooperateuntilitcansellitsassetstopayitscreditorsunderliesthegoing-concernassumption.10)Themonetaryunitassumptionmeansthatallinternationaltransactionsmustbeexpressedindollars.11)TheInternationalAccountingStandardsBoard(IASB)isthegovernmentgroupthatestablishesreportingrequirementsforcompaniesthatissuestocktothepublic.12)Expensesdecreaseequityandarethecostsofassetsorservicesusedtoearnrevenues.13)Acompanymightprovideaserviceorproductoncredit.Oncreditimpliesthatthecashpaymentwilloccuronalaterdate.14)Eachadjustingentryaffectsonlyoneormoreincomestatementaccountandnevercash.15)Thelegitimateclaimsofabusiness'screditorstakeprecedenceovertheclaimsofthebusinessowner.16)Underthecashbasisofaccounting,noadjustmentsaremadeforprepaid,unearned,andaccrueditems.17)Fromanaccountingperspective,aneventisahappeningthataffectsanentity'saccountingequation,butcannotbemeasured.18)Theincomestatementisafinancialstatementthatshowsrevenuesearnedandexpensesincurredduringaspecifiedperiodoftime.19)ChuckTaylorwithdrew$6,000incashfromFastForward.Thisamountshouldbeincludedasanexpenseontheincomestatement.20)Sourcedocumentsprovideevidenceofbusinesstransactionsandarethebasisforaccountingentries.21)Itemssuchassalestickets,bankstatements,checks,andpurchaseordersaresourcedocuments.22)Itisnotnecessarytokeepseparateaccountsforallitemsofimportanceforbusinessdecisions.23)Closingentriesarenecessarysothatowner'scapitalwillbegineachperiodwithazerobalance.24)Cashwithdrawnbytheownerofaproprietorshipshouldbetreatedasanexpenseofthebusiness.25)Whenacompanyprovidesservicesforwhichcashwillnotbereceiveduntilsomefuturedate,thecompanyshouldrecordtheamountreceivedasunearnedrevenuefortheamountchargedtothecustomer.26)Doubleentryaccountingrequiresthateachtransactionaffect,andberecordedin,atleasttwoaccounts.27)Assetaccountsnormallyhavecreditbalancesandrevenueaccountsnormallyhavedebitbalances.28)Atransactionthatdecreasesanassetaccountandincreasesaliabilityaccountmustalsoaffectoneormoreotheraccounts.29)Adjustingentriesareusedtobringassetorliabilityaccountstotheirproperamountandupdatetherelatedexpenseorrevenueaccount.30)Whenacompanybillsacustomerfor$600forservicesrendered,thejournalentrytorecordthistransactionwillincludea$600debittoServicesRevenue.31)Thejournalisknownasthebookoffinalentrybecausefinancialstatementsarepreparedfromit.32)Theclosingprocesstakesplaceafterfinancialstatementshavebeenprepared.2/933)Atrialbalancethatbalancesisnotproofofcompleteaccuracyinrecordingtransactions.34)Closingentriesaredesignedtotransfertheend-of-periodbalancesintherevenueaccounts,theexpenseaccounts,andthewithdrawalsaccounttoowner'scapital.35)Ifcashwasincorrectlydebitedfor$100insteadofcorrectlycreditedfor$100,thecashaccountisoutofbalanceby$100.36)Adjustingentriesresultinabettermatchingofrevenuesandexpensesfortheperiod.37)Thematchingprinciplerequiresthatexpensesgetrecordedinthesameaccountingperiodastherevenuesthatareearnedasaresultoftheexpenses,notwhencashispaid.38)OnOctober15,acompanyreceived$15,000cashasadownpaymentonaconsultingcontract.TheamountwascreditedtoUnearnedConsultingRevenue.ByOctober31,10%oftheservicesrequiredbythecontractwerecompleted.Thecompanywillrecordconsultingrevenueof$1,500fromthiscontractforOctober.39)Closingrevenueandexpenseaccountsattheendoftheaccountingperiodservestomaketherevenueandexpenseaccountsreadyforuseinthenextperiod.40)Accruedexpensesreflecttransactionswherecashispaidbeforearelatedexpenseisrecognized.41)Beforeanadjustingentryismadetorecognizethecostofexpiredinsurancefortheperiod,PrepaidInsuranceandInsuranceExpensearebothoverstated.42)Acompanypurchased$6,000worthofsuppliesinAugustandrecordedthepurchaseintheSuppliesaccount.OnAugust31,thefiscalyear-end,thesuppliescountequaled$3,200.Theadjustingentrywouldincludea$2,800debittoSupplies.43)Inpreparingstatementsfromtheadjustedtrialbalance,thebalancesheetmustbepreparedfirst.44)Acompanyperforms20daysworkona30-daycontractbeforetheendoftheyear.Thetotalcontractisvaluedat$6,000andpaymentisnotdueuntilthecontractisfullycompleted.Theadjustingentryincludesa$4,000credittounearnedrevenue.45)Anunadjustedtrialbala