Accounting I - Chapter 3 - Journalizing

The source document for all cash payments is a check.

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• FALSE

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

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• FALSE

The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.

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• FALSE

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

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• FALSE

A general journal page is complete when there is insufficient space to record any more entries.

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• FALSE

To correct an error in a journal, one can simply erase the incorrect item and write the correct item.

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• FALSE

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

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• FALSE

Transactions are recorded in a journal in chronological order.

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• FALSE

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

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• FALSE

When an entry in an amount column is an even dollar amount, either “00” or “--” can be entered in the cents column.

• TRUE
• FALSE