会计学原理练习题.doc

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True / False Questions1. Accounting records are also referred to as the books. TRUE
and increases a liability account must also affect one or more other accounts. TRUE
31. A transaction that increases an asset and decreases a liability must also affect one or more other accounts. TRUE
34. If a pany purchases land paying cash, the journal entry to record this transaction will include a debit to Cash. FALSE
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If a pany provides services to a customer on credit the selling pany should credit Accounts Receivable. FALSE
 When a pany bills a customer for $600 for services rendered, the journal entry to record this transaction will include a $600 debit to Services Revenue. FALSE
 The debt ratio helps to assess the risk a pany has of failing to pay its debts and is helpful to both its owners and creditors. TRUE
38. The higher a pany's debt ratio is, the higher the risk of a pany not being able to meet its obligations. 
TRUE
 The debt ratio is calculated by dividing total assets by total liabilities. 
FALSE40. A pany that finances a relatively large portion of its assets with liabilities is said to have a high degree of financial leverage. TRUE
41. If a pany is highly leveraged, this means that it has relatively low risk of not being able to repay its debt. 
FALSE
42. Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is %. 
FALSE$105 million/$350 million = %
43. High financial leverage is always bad for a pany's owners. 
FALSE
44. A pound journal entry affects no more than two accounts. 
FALSE
45. Posting is the transfer of journal entry information to the ledger. 
TRUE
46. Transactions are first recorded in the ledger. 
FALSE
47. The journal is known as a book of original entry. 
TRUE
48. A journal gives a plete record of each transaction in one place, and shows the debits and credits for each transaction. 
TRUE
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