Chapter 4 Recording Transactions in a General Journal
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