Chapter 4 Recording Transactions in a General Journal

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true

A journal entry should not be split and recorded on two different pages.

objective evidence

Accounting concept applied when a source document is prepared for each transaction.

true

Before a transaction is recorded in a journal, the transaction is analyzed into its debit and credit parts.

true

Dollar signs should not be used when writing amounts on ruled accounting paper.

false

If an incorrect amount is recorded in a journal entry, erase the incorrect amount and write the correct amount on the same line.

T

Source Document code for calculator tape

C

Source Document code for checks

M

Source Document code for memorandums

R

Source Document code for receipts

S

Source Document code for sales invoice

true

The entry to record cash received from sales is recorded as a debit to Cash and a credit to Sales.

Unit of Measurement

The recording of accounting transactions in consistent dollary values. Foreign currency must be converted to US dollars prior to journalizing the transaction.

true

The source document Check No. 4 is abbreviated as C4 in a journal entry.

false

The year and month are written for every journal entry on the same journal page.

false

When cash is paid on account, the cash account is listed on the first line of the entry.

false

When cash is received on account, the amount is recorded as a debit to the accounts receivable account and a credit to Cash.

true

When recording transactions in a general journal, the account title that is credited is usually indented.

true

When supplies are bought on account, an asset account is increased by a debit and a liability account is increased by a credit.

chronological

When transactions are recorded in a journal by date in the order in which they occur, they are recorded in ________________ order.

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

Invoice

a form describing the goods or services sold, the quantity, and the price

Journal

a form for recording transactions in chronological order

Memorandum

a form on which a brief message is written describing a transaction

General Journal

a journal with two amount columns in which all kinds of entries can be recorded

Sales invoice

an invoice used as a source document for recording a sale on account

Entry

information for each transaction recorded in a journal

Journalizing

recording transactions in a journal

Double-entry accounting

the recording of debit and credit parts of a transaction


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