Chapter 4: The General Journal and the General Ledger, Quiz

The journal entry to record the receipt of cash from clients on account would include a

debit to Cash and a credit to Accounts Receivable

The journal entry to record a payment made in January for rent for the months of February and March would include a

debit to Prepaid Rent and a credit to Cash

The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include a

debit to Sue Snow, Drawing and a credit to Cash

The journal entry to record the payment of a monthly utility bill would include a

debit to Utilities Expense and a credit to Cash

An amount debited to Cash in a journal entry should be posted as a credit to the Cash account in the ledger

false

The Accounts Payable account has a $5,000 credit balance. An entry for the payment of $2,000 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is

a $3,000 credit balance.

If a journal entry that contains an error has already been posted,

a correcting entry should be journalized and posted

A firm purchased telephone equipment for cash. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. The error was discovered after the data posted. The correcting entry should contain

a debit to Office Equipment and a credit to Utilities Expense

A firm purchased telephone equipment for cash. By mistake, the person who recorded the transaction debited Utilities Expense instead of Office Equipment. The error was discovered after the data was posted. The correcting entry should contain

a debit to Office Equipment and a credit to Utilities Expense

The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include

a debit to Sue Snow, Drawing and a credit to Cash

When an entry is made in the general journal,

accounts to be debited should be listed first.

The account numbers are recorded in the Posting Reference column of the general journal

after each amount is posted

The journal entry to record the sale of services on credit should include a

debit to Accounts Receivable and a credit to Fees Income

Compound entries affect

more than one debit and/or more than one credit

The process of transferring data from the journal to the ledger is known as

posting.

The Posting Reference column of a journal is used to

record the number of the ledger account to which the information is posted

The debit portion of a general journal entry is always

recorded first.

Business papers, such as checks, invoices, receipts, letters, and memos, that furnish proof that a transaction has taken place are called

source documents

A ledger account contains a complete record of

the individual transaction activity in each account

If a transaction is properly analyzed and recorded,

the total amount debited will equal the total amount credited