Chapter 4 Quiz

Question 1

A chart of accounts does NOT include

Answer 1

names of customers

Question 2

The transaction to record payment for equipment that was purchased on account in the previous month would include

Answer 2

debiting accounts payable and crediting cash

Question 3

An account in the chart of accounts is assigned a number at random. T/F

Answer 3

false

Question 4

The flow of financial data through the accounting information system does NOT include

Answer 4

paying an account payable

Question 5

Source documents begin the process of entering transactions in the accounting system. T/F

Answer 5

true

Question 6

If the owner of a company invested cash in a business enterprise, the transaction would include

Answer 6

debiting cash and crediting capital

Question 7

Entering transactions in a journal is called recording. T/F

Answer 7

false

Question 8

When delivery equipment is purchase on account, the transaction to be entered by the purchaser includes

Answer 8

debiting delivery equipment and crediting accounts payable

Question 9

It is permissible to enter information about a transaction in the ledger accounts first, before entering the information in the journal. T/F

Answer 9

false

Question 10

The purpose of a journal is to provide a chronological record of all transactions completed by the business. T/F

Answer 10

true