The General Journal, Source Documents, HST

The year is recorded on the first line of each page of a journal.

• true

• false

When 2 or more transactions occur on the same day, the day need only be recorded for the first transaction.

• true

• false

In a journal entry, accounts to be debited are indented from the left margin.

• true

• false

Some provinces charge PST, GST and HST simultaneously.

• true

• false

Which of the following statements about the journal is INCORRECT?

• It can be used as a reference to verify information in a ledger.

• It presents the financial position of the business.

• It provides a chronological record of a business transaction.

• It is the book of original entry.

The accounting entry for a sales invoice is:

• DR Accounts Receivable, CR Sales

• DR Accounts Payable, CR Sales

• DR Sales, CR Accounts Payable

• DR Sales, CR Accounts Receivable

The correct journal entry for a business remitting HST to the government is:

• DR Tax Expense, credit HST Payable

• DR Tax Expense, CR Bank

• DR HST Payable, CR Bank, CR HST Recoverable

• DR HST Payable, DR HST Recoverable, CR Bank

A debit to HST Recoverable would mean a business:

• purchased an item and paid HST

• remitted HST owing to the government

• sold and item and collect HST

• did none of the above

Select the source document that has been most likely RECEIVED by the accounting clerk as a result of the following journal entry: DR Supplies, CR A/P

• sales invoice

• cheque copy

• cash receipts list

• purchase invoice

All purchase invoices are also sales invoices.

• true

• false