Deck 3: Journalizing Transactions

Question 1

The source document for all cash payments is a check.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.

Answer 3

False

Question 4

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

Question 5

The journal columns used to record receiving cash from the owner as an investment are Cash Debit and Sales Credit.

Question 6

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

Question 7

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

Question 8

A complete journal entry consists of the date, the debit amount, the credit amount, and a source document.

Question 9

When an entry in an amount column is an even dollar amount, either "00" or "--" can be entered in the cents column.

Question 10

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

Question 11

Cash is always proved at the end of a month.

Question 12

Every business uses the same journal to record transactions.

Question 13

In double-entry accounting, each transaction affects at least two accounts.

Question 14

On each journal page, the date is written

A) for each entry.
B) only for the first entry.
C) on the first line of each column.
D) none of these.

Question 15

The entry to record payment of cash to the owner as a withdrawal of equity is

A) debit Cash, credit Drawing.
B) debit Drawing, credit Cash.
C) debit Cash, credit Accounts Payable.
D) none of these.

Question 16

When cash is paid for supplies,

A) Supplies is increased.
B) Supplies is credited.
C) the balance of Supplies is decreased.
D) none of these.

Question 17

A single line ruled across the journal's amount columns indicates

A) the date is the last day of the month.
B) the totals have been verified as correct.
C) that columns are to be totaled.
D) none of these.

Question 18

If an error is recorded in a journal entry,

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 these.

Question 19

When cash is received on account, the amount is recorded in the

A) Sales Credit column and Cash Debit column.
B) General Debit column and Cash Credit column.
C) Accounts Receivable Credit column and Cash Debit column.
D) General Debit column and Accounts Payable Debit column.

Question 20

When cash is received from sales, the amount is recorded in the

A) Sales Credit column and Cash Debit column.
B) Sales Debit column and Cash Credit column.
C) General Credit column and Cash Debit column.
D) General Debit column and Cash Credit column.

Question 21

When services are sold on account, the amount is recorded in the

A) Accounts Receivable Debit column and Cash Credit column.
B) General Credit column and Cash Debit column.
C) Accounts Receivable Debit column and Sales Credit column.
D) General Debit column and Accounts Payable Debit column.

Question 22

When cash is paid for rent, the amount is recorded in the

A) Cash Credit column and General Debit column.
B) Sales Credit column and General Debit column.
C) General Credit column and Cash Debit column.
D) General Credit column and Sales Credit column.

Question 23

When cash is paid on account, the amount is recorded in the

A) Accounts Payable Debit column and Cash Credit column.
B) Sales Credit column and Cash Debit column.
C) General Debit column and Cash Credit column.
D) Cash Debit column and General Credit column.

Question 24

Select the one term that best fits each definition.

-Information for each transaction recorded in a journal.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 25

Select the one term that best fits each definition.

-Recording transactions in a journal.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 26

Select the one term that best fits each definition.

-A form on which a brief message is written to describe a transaction.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 27

Select the one term that best fits each definition.

-A business form ordering a bank to pay cash from a bank account.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 28

Select the one term that best fits each definition.

-A business paper from which information is obtained for a journal entry.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 29

Select the one term that best fits each definition.

-A form for recording transactions in chronological order.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 30

Select the one term that best fits each definition.

-An invoice used as a source document for recording a sale on account.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 31

Select the one term that best fits each definition.

-A business form giving written acknowledgement for cash received.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 32

Select the one term that best fits each definition.

-The recording of debit and credit parts of a transaction.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 33

Select the one term that best fits each definition.

-Determining that the amount of cash agrees with the accounting records.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document

Question 34

Select the one term that best fits each definition.

-A form describing the goods or services sold the quantity, the price, and the terms of sale.

A) check
B) double-entry accounting
C) entry
D) invoice
E) journal
F) journalizing
G) memorandum
H) proving cash
I) receipt
J) sales invoice
K) source document