Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 16. The accounting equation does not have to be in balance after the recording of each transaction. FALSE One of the underlying principles of an accounting transaction is that the accounting equation must be in balance after recording the transaction. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 17. Additional-paid in capital is reported on the balance trial as a component of shareholders' equity. TRUE Shareholders' equity includes common stock, additional paid-in capital, and retained earnings. Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 18. Common stock and additional-paid in capital are both reported on the balance sheet as a component of shareholders' equity. TRUE Shareholders' equity includes common additional paid-in capital, and retained earnings.
Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 16. The accounting equation does not have to be in balance after the recording of each transaction. FALSE One of the underlying principles of an accounting transaction is that the accounting equation must be in balance after recording the transaction. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 17. Additional-paid in capital is reported on the balance as a component of shareholders' equity. TRUE Shareholders' equity includes common stock, additional paid-in capital, and retained earnings. Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-03 Apply transaction analysis to simple business transactions in terms of the accounting model: Assets = Liabilities + Stockholders' Equity. Topic Area: How Do Transactions Affect Accounts 18. Common stock and additional-paid in capital are both reported on the balance sheet as a component of shareholders' equity. TRUE Shareholders' equity includes common additional paid-in capital, and retained earnings. trial
Test-Bank-for-Financial-Accounting-8th-Edition-by-Lib-by.docx