Accounting Chapter 3
When cash is paid for utilities, the amount is recorded in the ____.
A) Cash Credit column and General Debit column
A business form ordering a bank to pay cash from a bank account is a ____.
A) check
The account debited when cash is paid for supplies is ____.
A) supplies
When cash is paid on account, the amount is recorded in the ____.
B) General Debit column and Cash Credit column
At the end of a month, if the amount of cash is the same as the balance shown on the next check stub, ____.
B) cash is proved
The recording of debit and credit parts of a transaction is ____.
B) double-entry accounting
On each journal page, the year is written ____.
C) only for the first entry
When cash is paid for insurance, ____.
C) the balance of the Prepaid Insurance account is increased
If an error is recorded in a journal entry, ____.
D) 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 the above
When cash is received on account, the amount is recorded in the ____.
D) Cash Debit column and General Credit column
Determining that the amount of cash agrees with the accounting records is ____.
D) proving cash
A calculator or cash register tape is not used as the source document for cash sales transactions.
F
A complete entry consists of the date, the debit amount, and the credit amount.
F
A memorandum is a business form giving written acknowledgment for cash received.
F
The day of the month is written on each journal page only for the first entry.
F
The source document for all cash payments is a sales invoice.
F
The source document sales invoice is abbreviated as SI in a journal entry.
F
To correct an error in a journal, simply erase the incorrect item and write the correct item in the same place.
F
Transactions are recorded in a journal in alphabetical order.
F
A business form giving written acknowledgement for cash received is a receipt.
T
A check is a business form ordering a bank to pay cash from a bank account.
T
A journal amount column headed with an account title is a special amount column.
T
A journal amount column that is not headed with an account title is a general amount column.
T
A journal page is proved by verifying that the total debits equal the total credits.
T
Before a transaction is recorded in a journal, it is analyzed into its debit and credit parts.
T
Cash is always proved at the end of a month.
T
Double lines are ruled across a journal's amount columns to indicate that the totals have been verified as correct.
T
Information for each transaction recorded in a journal is an entry.
T
Recording transactions in a journal is called journalizing.
T
The journal columns used to record paying cash for rent are general debit and cash credit.
T
The journal columns used to record paying cash to the owner for personal use are general debit and cash credit.
T
The journal columns used to record receiving cash from sales are cash debit and sales credit
T
The source document used when supplies are bought on account is a memorandum
T
The year and the month are written only once on a journal page
T