Financial and managerial accounting 6th edition wild test bank

does not contain the balances.
chart of accounts
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C3 Describe a ledger and a chart of accounts.
Topic: Ledger and Chart of Accounts

225.

A record containing all the separate accounts for a company as well as all of their balances is
called the ___________________.
ledger
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C3 Describe a ledger and a chart of accounts.
Topic: Ledger and Chart of Accounts

226.

_____________________________ requires that each transaction affect, and be recorded in, at least
two accounts. It also means that total amounts debited must equal total amounts credited for
each transaction.
Double-entry accounting
AACSB: Communication
AICPA: BB Industry

AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.
Topic: Debits and Credits

2-248
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McGraw-Hill Education.


227.

The _____________________ is found by determining the difference between total debits and total
credits for an account, including any beginning balance.
account balance
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Topic: The Account and Its Analysis

228.

To increase an asset account we would _______________ it and to increase a liability account, we
would ______________ it.
debit; credit
Answers need to appear in the order shown above

AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.
Topic: Debits and Credits

229.

Funky Music purchased $25,000 of equipment for cash. The Equipment asset account is
_______________ for $25,000 and the cash account is _______________ for $25,000.
debited; credited
Answers need to appear in the order as shown above

AACSB: Analytical Thinking
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Understand
Difficulty: 2 Medium

2-249
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McGraw-Hill Education.


Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.
Topic: Debits and Credits

230.

Jackson Brown Footwear had total liabilities of $130 million and total assets of $375 million. Its
debt ratio was _______________.
34.7%
Debt Ratio = Total Liabilities/Total Assets
Debt Ratio = $130 million/$375 million = 34.7%

AACSB: Analytical Thinking
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 02-A2 Compute the debt ratio and describe its use in analyzing financial condition.
Topic: Debt Ratio

231.

_______________ is the process of transferring journal entry information from the journal to the
ledger.
Posting
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-P1 Record transactions in a journal and post entries to a ledger.
Topic: Journalizing and Posting Transactions

232.

A ____________ gives a complete record of each transaction in one place, and shows debits and
credits for each transaction.
journal
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember

2-250
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McGraw-Hill Education.


Difficulty: 1 Easy
Learning Objective: 02-P1 Record transactions in a journal and post entries to a ledger.
Topic: Journalizing and Posting Transactions

233.

A more structured format that is similar to a T-account in that it has columns for debits and
credits, but that is different in that it has columns for transaction date, explanation, and the
account balance is the _____________________.
balance column account
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.

Topic: The Account and Its Analysis

234.

The posting process is the link between the _______________ and the _____________.
journal; ledger
Answers can be recorded in either order

AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-P1 Record transactions in a journal and post entries to a ledger.
Topic: Journalizing and Posting Transactions

235.

You increase the Service Revenue account on the ___________ side of its account.
right or credit
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.

2-251
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McGraw-Hill Education.

Topic: Debits and Credits

236.

You decrease the Accounts Payable account on the ___________ side of its account.
left or debit
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.
Topic: Debits and Credits

2-252
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.