accounting test true false chapt 3

a business form ordering a bank to pay cash from a bank account

check

the recording of debit and credit parts of a transaction

double-entry accounting

information for each transaction recorded in a journal

entry

A complete entry consists of the date, the debit amount, and the credit amount.

false

A transaction recorded in a journal is not considered a permanent record.

false

The day of the month is written on each journal page only for the first entry.

false

The source document for all cash payments is a sales invoice.

false

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

false

the journal amount column that is not headed with an account title

general amount column

a form for recording transactions in chronological order

journal

recorded transactions in a journal

journalizing

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

memorandum

determining that the amount of cash agrees with the accounting records

proving cash

a business form giving written acknowledgement for cash recieved

reciept

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

sales invoice

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

source document

a journal amount column that is not headed with an account title

special amount column

A calculator tape is the source document for daily sales.

true

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

true

Cash is always proved at the end of a month.

true

Double lines are ruled across a journal's amount columns to indicate that the totals have been verified as correct.

true

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

true

The journal columns used to record paying cash for rent are General Debit and Cash Credit.

true

The journal columns used to record receiving cash from sales are Cash Debit and Sales

true

The source document for cash payment transactions is a check.

true

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

true

The year and the month are written only once on a journal page.

true

Transactions are recorded in a journal in chronological order.

true