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b.
False
Indicate whether the statement is true or false.
1. A general journal page is complete when there is insufficient space to record any more entries.
a.
True
b.
False
2. The accounting concept Unit of Measurement is being applied when a source document is prepared for each
transaction.
a.
True
b.
False
3. Transactions are recorded in a journal in chronological order.
a.
True
b.
False
4. The Objective Evidence concept requires proof that a transaction did occur.
a.
True
b.
False
5. Every business uses the same journal to record transactions.
a.
True
b.
False
6. A transaction recorded in a journal is not considered a permanent record.
a.
True
b.
False
7. The source document for all cash payments is a check.
a.
True
b.
False
8. 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
9. In double-entry accounting, each transaction affects at least two accounts.
a.
True
b.
False
10. A calculator tape is the source document for daily cash sales.
a.
True
b.
False
11. To correct an error in a journal, one can simply erase the incorrect item and write the correct item.
a.
True
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12. The source document used when supplies are bought on account is a memorandum.
a.
True
b.
False
13. A receipt is the source document for cash received from transactions other than sales.
a.
True
b.
False
14. A complete journal entry consists of the date, the debit amount, the credit amount, and a source document.
a.
True
b.
False
Directions: Select the one term that best fits each definition. Print the letter identifying your choice on the line to the left
of the statement.
a.
check
b.
double-entry accounting
c.
entry
d.
invoice
e.
journal
f.
journalizing
g.
memorandum
h.
receipt
i.
sales invoice
j.
source document
15. Information for each transaction recorded in a journal.
16. Recording transactions in a journal.
17. A form on which a brief message is written to describe a transaction.
18. A business form ordering a bank to pay cash from a bank account.
19. A business paper from which information is obtained for a journal entry.
20. A form for recording transactions in chronological order.
21. An invoice used as a source document for recording a sale on account.
22. A business form giving written acknowledgement for cash received.
23. The recording of debit and credit parts of a transaction.
24. A form describing the goods or services sold, the quantity, the price, and the terms of sale.
Name:
Class:
Date: