Accounting I Review

An amount recorded on the right side:

• Debit.
• Credit.
• An increase.
• A decrease.

When a business buys an asset on one date and agrees to pay on a later date, the transaction is:

• delayed.
• on account.
• increased.
• none of these.

The source document for cash payments is a:

• check.
• memorandum.
• receipt.
• sales invoice.

A ______ is used as a source document for recording a sale on account.

• invoice
• check
• receipt
• memorandum

A business form giving written acknowledgement for cash received is called a:

• receipt.
• check.
• invoice.
• memorandum.

A _________ is used as a source document when there is no other source document for a transaction.

• memorandum
• receipt
• check
• calculator tape

When journalizing transactions in the Cash Receipts Journal you need ____________ as your source document.

• memorandum
• check
• sales invoice
• receipt

If a customer buys $300.00 worth of merchandise and the sales tax is 8%, the total bill the customer must pay is:

• $300.00
• $304.00
• $324.00
• $342.00

In the United States, recording business transactions in dollars is an application of the accounting concept :

• Unit of Measurement.
• Business Entity.
• Going Concern.
• Separation of Records.

What does 3/15, n/30 mean?

• 3% discount if paid by the 15th otherwise due by the 30th
• 3% discount if paid in 15 days otherwise due in 30 days
• 15% discount when paid in 30 days
• 3% due in 15 days rest due in 30 days