Chapter 3 True or False

Question 1

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

Answer 1

True

Question 2

The Objective Evidence accounting concept requires that there be proof that a transaction did occur.

Answer 2

True

Question 3

Examples of source documents include checks, sales invoices, memorandums, and letters.

Answer 3

False

Question 4

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

Answer 4

True

Question 5

The source document for all cash payments is a sales invoice.

Answer 5

False

Question 6

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

Answer 6

True

Question 7

A calculator tape is the source document for daily sales.

Answer 7

True

Question 8

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

Answer 8

True

Question 9

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

Answer 9

True

Question 10

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

Answer 10

True

Question 11

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

Answer 11

False

Question 12

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

Answer 12

True

Question 13

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

Answer 13

True

Question 14

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

Answer 14

True

Question 15

Double lines across column totals mean that the totals have been verified as correct.

Answer 15

True

Question 16

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

Answer 16

False

Question 17

Dollars and cents signs and decimal points should be used when writing amounts on ruled accounting pages.

Answer 17

False