Accounting Study Guide 3

question

check
answer

a business form ordering a bank to pay cash from a bank account
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double-entry accounting
answer

the recording of debit and credit parts of a transaction
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entry
answer

information for each transaction recorded in a journal
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general amount column
answer

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

a form describing the goods or services sold, the quantity, and the price
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journal
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a form for recording transactions in chronological order
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journalizing
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recording transactions in a journal
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memorandum
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a form on which a brief message is written describing a transaction
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proving cash
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determining that the amount of cash agrees with the accounting records
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receipt
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a business form giving written acknowledgment for cash received
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sales invoice
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an invoice used as a source document for recording a sale on account
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source document
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a business paper from which information is obtained for a journal entry
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special amount column
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a journal amount column headed with an account title
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true
answer

true or false: Information in a journal includes the debit and credit parts of each transaction recorded in one place
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true
answer

true or false: The Objective Evidence accounting concept requires that there be proof that a transaction did occur
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false
answer

true or false: Examples of source documents include checks, sales invoices, memorandums, and letters
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true
answer

true or false: A check is the source document used when items are paid in cash
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false
answer

true or false: The source document for all cash payments is a sales invoice
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true
answer

true or false: A receipt is the source document for cash received from transactions other than sales
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true
answer

true or false: A calculator tape is the source document for daily sales
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true
answer

true or false: The source document used when supplies are bought on account is a memorandum
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true
answer

true or false: The source document used when supplies bought on account are paid for is a check
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true
answer

true or false: The journal columns used to record receiving cash from sales are cash debit and sales credits
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false
answer

true or false: The source document sales invoice is abbreviated as SI in a journal entry
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true
answer

true or false: The journal columns used to record paying cash for rent are general debit and cash credit
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true
answer

true or false: The journal columns used to record paying cash to the owner for personal use are general debit and cash credit
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true
answer

true or false: To prove a journal page, the total debit amounts are compared with the total credit amounts to be sure they are equal
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true
answer

true or false: Double lines across column totals mean that the totals have been verified as correct
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false
answer

true or false: To correct an error in a journal, simply erase the incorrect item and write the correct item in the same place
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false
answer

true or false: Dollars and cents signs and decimal points should be used when writing amounts on ruled accounting pages

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