3EN POA Chapter 2: Accounting Information Systems

Question 1

Identify the source document to record this transaction: The credit customer returned goods to the business.

Accepted Answer

Credit Note

Question 2

The monetary theory states that only business transactions that can be measured in monetary terms are recorded.

Accepted Answer

True

Question 3

A credit transaction is when payment is made immediately at the point of sale or purchase.

Accepted Answer

False

Question 4

Identify the source document to record this transaction: The business informed credit customer she has been overcharged.

Accepted Answer

Credit Note

Question 5

Which accounting theory explains the need for source documents?

Accepted Answer

Objectivity Theory

Question 6

What is the purpose of source documents?

Accepted Answer

To provide proof that a transaction has occurred

Question 7

Identify the source document to record this transaction: The business informed credit customer she has been undercharged

Accepted Answer

Debit Note

Question 8

Transactions should be recorded at its original cost. What theory is this?

Accepted Answer

Historical cost theory

Question 9

Identify the source document to record this transaction: The business purchased a table on credit.

Accepted Answer

Invoice

Question 10

Identify the source document to record this transaction: The business received a cheque payment from customer.

Accepted Answer

Bank Statement

Question 11

The main difference between cash and credit transactions is the

Accepted Answer

Timing of payment

Questions 11