Accounting Chapter 3 Review: Century 21 Accounting

Question 1

Dwight Schrute took out $50 from his beet farm account. What two accounts are impacted.

Accepted Answer

drawing (owner's equity) debited, cash credited

Question 2

Transactions are recorded in a journal in chronological order.

Accepted Answer

true

Question 3

How would you write sales invoice #2?

Accepted Answer

S2

Question 4

A source document for daily sales

Accepted Answer

calculator tape

Question 5

A business form giving written acknowledgement for cash received

Accepted Answer

receipt

Question 6

When an owner takes money out of his business, it negativity impacts his own checking account.

Accepted Answer

False

Question 7

Information for each transaction recorded in a journal is called a(n)

Accepted Answer

entry

Question 8

A service is sold on account, the seller prepares a form showing information about the sale

Accepted Answer

invoice

Question 9

When we write a memorandum, it's typically because we purchased on account.

Accepted Answer

True

Question 10

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

Accepted Answer

true

Question 11

What account is impacted by writing a business check?

Accepted Answer

cash

Question 12

Every business uses the same journal to record transactions.

Accepted Answer

false

Question 13

To make a correction on a transactions entered incorrectly on paper journals, you...

Accepted Answer

cross off the incorrect account title and rewrite above it

Question 14

A complete journal entry: date, the debit amount, the credit amount, and a source document.

Accepted Answer

false

Question 15

All are examples of source documents except

Accepted Answer

all are correct

Question 16

Cash is always proved at the end of a month.

Accepted Answer

true

Question 17

A FORM for recording transactions in chronological order is called

Accepted Answer

journal

Question 18

A business check comes out of the owner's personal checking account.

Accepted Answer

False

Question 19

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

Accepted Answer

false

Question 20

Dwight Schrute invested $3,000 into his beet farm. What two accounts are impacted.

Accepted Answer

cash debited, capital (owner's equity) credited

Question 21

cash, prepaid insurance, accounts receivable, and supplies all increase on what side...

Accepted Answer

debit

Question 22

Received cash from owner as an investment. what gets debited?

Accepted Answer

cash

Question 23

Expenses impact what two accounts?

Accepted Answer

cash, expense

Question 24

When we run out of room on a journal, what should your last transaction be

Accepted Answer

carried forward

Question 25

When you are giving someone a sales invoice, what most likely occurred?

Accepted Answer

sale of service paid to accounts receivable

Question 26

A form describing the goods or services sold, the quantity, the price, and terms of sale

Accepted Answer

sales invoice

Question 27

What is the common transaction abbreviation for cash register tape?

Accepted Answer

T

Question 28

a business paper from which information is obtained for a journal entry is called

Accepted Answer

source document

Question 29

When you are recording a transaction on two lines (supplies on account), which is written first

Accepted Answer

supplies

Question 30

revenue, expenses, investments and withdrawals all impact

Accepted Answer

owner's equity

Question 31

which is a liability?

Accepted Answer

accounts payable

Question 32

A business form ordering a bank to pay cash from a bank account is called a(n)

Accepted Answer

check

Question 33

cash, prepaid insurance, accounts receivable, and supplies impact

Accepted Answer

assets

Question 34

Recording a transaction in a journal is called

Accepted Answer

journalizing

Question 35

the recording of debit and credit parts of a transaction is called

Accepted Answer

double-entry accounting

Question 36

Determining that the amount of cash agrees with the accounting records is called

Accepted Answer

proving cash

Question 37

if you received cash from a sale, how would you record the account title?

Accepted Answer

check mark

Question 38

Double lines are ruled across a journal’s amount columns to indicate that totals are correct.

Accepted Answer

false

Question 39

In double-entry accounting, each transaction affects at least two accounts.

Accepted Answer

true

Question 40

revenue, expenses, investments and withdrawals all increase on what side

Accepted Answer

credit

Question 41

How do you show an increase on owner's equity for a sale (revenue)?

Accepted Answer

credit

Question 42

When you are looking at register tape, what transaction can you assume happened?

Accepted Answer

cash sales

Question 43

A form on which a brief message is written to describe a transaction

Accepted Answer

memorandum

Question 44

When you are unsure of what title "telephone bill" is under, check the COA

Accepted Answer

true

Question 45

When you are at the last transaction of the month, what should you do?

Accepted Answer

rule journal page and prove cash

Question 46

A transaction recorded in a journal is not considered a permanent record.

Accepted Answer

false

Accounting Chapter 3 Review: Century 21 Accounting

Questions 46

Accounting Chapter 3 Review: Century 21 Accounting

Questions 46