Chapter 3

true

T or F: a calculator tape is the source document for daily cash sales

true

T or F: a complete journal entry consists of the date, the debit amount, the credit amount, and a source document

true

T or F: a general journal page is complete when there is insufficient space to record any more entries

true

T or F: a receipt is the source document for cash received from transactions other than sales

false

T or F: every business uses the same journal to record transactions

true

T or F: in double entry accounting, each transaction affects at least two accounts

true

T or F: the source document for all cash payments is a check

false

T or F: to correct an error in a journal, one can simply erase the incorrect item and write the correct item

true

T or F: transactions are recorded in a journal in chronological order

false

T or F: when an entry in an amount column is an even dollar amount, either "00" or "--" can be entered in the cents column

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, the price, and the terms of sale

journal

a form for recording transactions in chronological order

memorandum

a form on which a brief message is written to describe a transaction

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