accounting chapter 3
sales invoice
an invoice used as a source document for recording a sale on account.
true
1. Double lines are ruled across a journal's amount columns to indicate that the totals have been verified as correct.
journal
A form for recording transactions in chronological order.
memorandum
A form on which a brief message is written to describe a transaction.
B
A journal entry includes (A) the debit part of a transaction recorded under one date and credit part recorded under a later date. (B) the debit and credit parts of a transaction recorded in one place. (C) more debits than credits. (D) none of these.
true
A receipt is the source document for cash received from transactions other than sales.
false
Every business uses the same journal to record transactions.
invoice
A form describing the goods or services sold, the quantity, the price, and the terms of sale
false
3. The journal columns used to record receiving cash from the owner as an investment are Cash Debit and Sales Credit.
true
4. The journal columns used to record paying cash for supplies are General Debit and Cash Credit.
false
5. To correct an error in a journal, one can simply erase the incorrect item and write the correct item in the same place
true
6. Transactions are recorded in a journal in chronological order.
true
7. The source document for cash payment transactions is a check.
true
8. A complete journal entry consists of the date, the debit amount, the credit amount, and a source document.
false
9. The day of the month is written only once on a journal page.
receipt
A business form giving written acknowledgement for cash received.
check
A business form ordering a bank to pay cash from a bank account.
source document
A business paper from which information is obtained for a journal entry.
true
Cash is always proved at the end of a month.
proving cash
Determining that the amount of cash agrees with the accounting records.
D
If an error is recorded in a journal entry, (A) cancel the error by drawing a neat line through the error. (B) correct the entry by writing the correct item above the canceled error. (C) do not erase the incorrect item. (D) all of these
true
In double-entry accounting, each transaction affects at least two accounts.
entry
Information for each transaction recorded in a journal.
false
When an entry in an amount column is an even dollar amount, either "00" or "--" can be entered in the cents column
A
On each journal page, the date is written (A) for each entry. (B) on the first line of each column. (C) only for the first entry. (D) none of these.
C
On each journal page, the month is written (A) for each entry. (B) on the first line of each column. (C) only for the first entry. (D) none of these.
B
Preparing source documents for each transaction is an example of the accounting concept (A) Business Entity. (B) Objective Evidence. (C) Unit of Measurement. (D) Going Concern.
journalizing
Recording transactions in a journal.
true
The Objective Evidence accounting concept requires that there be proof that a transaction did occur.
B
The entry to record payment of cash to the owner as a withdrawal of equity is (A) debit Cash, credit Drawing. (B) debit Drawing, credit Cash. (C) debit Cash, credit Accounts Payable. (D) none of these.
double- entry accounting
The recording of debit and credit parts of a transaction.
A
When cash is paid for rent, the amount is recorded in the (A) Cash Credit column and General Debit column. (B) Sales Credit column and General Debit column. (C) General Credit column and Cash Debit column. (D) General Credit column and Sales Credit column.
A
When cash is paid for supplies, (A) Supplies is increased. (B) Supplies is credited. (C) the balance of Supplies is decreased. (D) none of these.
C
When cash is paid on account, the amount is recorded in the (A) Accounts Receivable Debit column and Cash Credit column. (B) Sales Credit column and Cash Debit column. (C) General Debit column and Cash Credit column. (D) Cash Debit column and General Credit column.
C
When services are sold on account, the amount is recorded in the (A) General Debit column and Cash Credit column. (B) General Credit column and Cash Debit column. (C) General Debit column and Sales Credit column. (D) General Debit column and Accounts Payable Debit column.
