Accounting Ch 3-4

The recording of debit and credit parts of a transaction is called

• accounting

• double entry accounting

• T charts

• extra work

Which of the following is the standard source document for cash paid out by the company?

• Invoice

• Check

• Memorandum

• Receipt

In what order are transactions recorded in a journal?

• By date

• Alphabetically

• In the same order as they appear in financial statements

• According to cash impact

When journalizing the transaction cash received from owner as an investment, which 2 accounts are impacted and in which order are they recorded?

• Owner Drawing, Cash

• Owner Capital, Cash

• Cash, Owner Drawing

• Cash, Owner Capital

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

• Receipt

• Calculator tape

• Invoice

• Memorandum

When journalizing a transaction in which cash is paid for insurance, which account appears second?

• Accounts Payable

• Cash

• Accounts Receivable

• Prepaid insurance

When do you start a new journal page?

• New year

• New month

• When there are no lines left

• When there is insufficient space to record any more entries

When a journal entry is incorrect and is discovered before the next entry is journalized, what do you do?

• Erase it

• Strike a neat line through the incorrect parts

• Strike a neat line through entire entry

• Report it

The procedure for arranging accounts in a general ledger, assigning account numbers and keeping records current is called

• journalizing

• accounting

• file maintenance

• balancing

What is the correct order of accounts in a general ledger?

• Assets, Liabilities, Owner Equity, Revenue, Expense

• Assets, Liabilities, Expense, Owner Equity, Revenue

• Owner Equity, Assets, Revenue, Liabilities, Expenses

• Alphabetically