Chapter 3 test

Question 1

a form for recording transactions in chronological order

Answer 1

journal

Question 2

recording transactions in a journal

Answer 2

journalizing

Question 3

a journal amount column headed with an account titles

Answer 3

special amount column

Question 4

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

Answer 4

general amount column

Question 5

information for each transaction recorded in a journal

Answer 5

entry

Question 6

the record of debit and credit parts of a transaction

Answer 6

double-entry accounting

Question 7

a business paper form which information is obtained for a journal entry

Answer 7

source document

Question 8

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

Answer 8

check

Question 9

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

Answer 9

invoice

Question 10

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

Answer 10

sales invoice

Question 11

a business form giving written acknowledgement for cash received

Answer 11

receipt

Question 12

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

Answer 12

memorandum

Question 13

determining that the amount of cash agrees with the accounting records

Answer 13

proving cash

Question 14

information in a journal includes the debit and credit parts of each transaction recorded in one place

Answer 14

T

Question 15

the objective evidence accounting concept requires that there be proof that a transaction did occur

Answer 15

T

Question 16

examples of source documents include checks, sales invoice, memorandums and letters

Answer 16

F

Question 17

a check is the source document used when items are paid in cash

Answer 17

T

Question 18

the source document for all cash payments is a sales invoice

Answer 18

F

Question 19

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

Answer 19

T

Question 20

a calculator tape is the source document for daily sales

Answer 20

T

Question 21

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

Answer 21

T

Question 22

the source document used when supplies bought on account are paid for is a check

Answer 22

T

Question 23

the journal columns used to record receiving cash from sales are cash debit and sales credit

Answer 23

T

Question 24

the source document sales invoice is abbreviated as SI in a journal entry

Answer 24

F

Question 25

The journal columns used to record paying cash for rent are general debit and cash credit

Answer 25

T

Question 26

the journal columns used to record paying cash to the owner for personal use are general debit and cash credit

Answer 26

T

Question 27

to prove a journal page , the total debit amounts are compared with the total credit amounts to be sure they are equal

Answer 27

T

Question 28

double line across column totals mean that the totals have been viewed as correct

Answer 28

T

Question 29

to correct an error in a journal, simply erase the incorrect item and write the correct item in the sale

Answer 29

F

Question 30

dollars and cent signs and decimal points should be used when writing amounts on ruled accounting pages

Answer 30

F

Question 31

received cash from owner as an investment

Answer 31

cash debit, general credit

Question 32

paid cash for supplies

Answer 32

general debit, cash credit

Question 33

paid cash for insurance

Answer 33

general debit, cash credit

Question 34

bought supplies on account

Answer 34

general debit, general credit

Question 35

paid cash on account

Answer 35

general debit, cash credit

Question 36

received cash from sales

Answer 36

cash debit, sales credit

Question 37

sold services on account

Answer 37

general debit, sales credit

Question 38

paid cash for an expense

Answer 38

general debit, cash credit

Question 39

received cash on account

Answer 39

cash debit, general credit

Question 40

paid cash to owner for personal use

Answer 40

general debit, cash credit