Ch. 3 True/False

The source document used when supplies are bought on account is a memorandum

true

The source document used when supplies bought on account are paid for is a check

true

To prove a journal page, the total debit amounts are compared with the total credit amounts to be sure they are equal

true

Dollars and cents signs and decimal points should be used when writing amounts on ruled accounting pages

false, if the page is ruled, dollar signs and decimal points are not needed

The source document sales invoice is abbreviated as SI in a journal entry

false, it is abbreviated by S

To correct an error in a journal, simply erase the incorrect item and write the correct item in the same place

false, journals are permanent records, so cross out the error with a single neat line

Examples of source documents include checks, sales invoices, memorandums, and letters

false, letters aren't a source documents

The source document for all cash payments is a sales invoice

false, the source document used for cash payments is a check

A calculator tape is the source document for daily sales

true

A check is the source document used when items are paid in cash

true

A receipt is the source document for cash received from transactions other than sales

true

Double lines across column totals mean that the totals have been verified as correct

true

Information in a journal includes the debit and credit parts of each transaction recorded in one place

true

The Objective Evidence concept requires that there be proof that a transaction did occur

true

The journal columns used to record receiving cash from sales are cash debit and sales credit

true