Accounting - Chapter 3

When cash is paid for supplies

The accounting concept Unit of Measurement is being applied when a source document is prepared

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

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

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

When cash is paid for rent, the amount is recorded in the

The recording of debit and credit parts of a transaction

A single line ruled across the journal's amount columns indicates

Transactions are recorded in a journal in chronological order

The columns used to record receiving cash from the owner as investment are Cash D - Sales C

The entry to record payment of cash to the owner as a withdrawal of equity is

Information for each transaction recorded in a journal

On each journal page, the date is written

Recording transactions in a journal

To correct an error in a journal, one can simply erase the incorrect item & write it corrected

If an error is recorded in a journal entry,

A form for recording transactions in chronological order

The source document for all cash payments is a check

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

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

An invoice used as a source document for recording a sale on account

When cash is received on account, the amount is recorded in the

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

A business form giving written acknowledgement for cash received.

When cash is received from sales, the amount is recorded in the

When services are sold on account, the amount is recorded in the

A business form ordering a bank to pay cash from a bank account

Cash is always proved at the end of a month

When an entry in an amount column is an even dollar amount, either "00" or "--" can be entered

Determining that the amount of cash agrees with the accounting records

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

When cash is paid on account, the amount is recorded in the

Double lines are ruled across a journals amount columns to indicate that the totals are correct

A complete journal entry consists of the date, debit amount, credit amount, & source document

Every business uses the same journal to record transactions