Accounting Chapter 3 Question Preview (ID: 48263)
Review For Chapter 3.
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In double-entry accounting, each transaction affects at least two accounts.
a) True
b) False
c)
d)
Cash is always proved at the end of a month.
a) True
b) False
c)
d)
Every business uses the same journal to record transactions.
a) True
b) False
c)
d)
Double lines are ruled across a journal's amount columns to indicate that the totals have been verified as correct.
a) True
b) False
c)
d)
When an entry in an amount column is an even dollar amount, either 00 or -- can be entered in the cents column.
a) True
b) False
c)
d)
A complete journal entry consists of the date, the credit amount, the credit amount, and a source document.
a) True
b) False
c)
d)
Transactions are recorded in a journal in chronological order.
a) True
b) False
c)
d)
A transaction recorded in a journal is not considered a permanent record.
a) True
b) False
c)
d)
To correct an error in a journal, one can simply erase the incorrect item and write the correct item.
a) True
b) False
c)
d)
The journal columns used to record receiving cash from the owner as an investment are Cash Debit and Sales Credit
a) True
b) False
c)
d)
The source document used when supplies are bought on account is a memorandum.
a) True
b) False
c)
d)
The accounting concept of Unit of Measurement is being applied when a source document is prepared for each transaction.
a) True
b) False
c)
d)
The source document for all cash payments is a check.
a) True
b) False
c)
d)
A receipt is the source document for cash received from transactions other than sales.
a) True
b) False
c)
d)
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
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
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
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) the columns are to be totaled
d) non of these
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 cancelled error
c) do not erase the incorrect item
d) all of these
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
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