Accounting 3.4

Preparing source documents for each transaction is an example of the accounting concept

(A) Business Entity.

(B) Objective Evidence.

(C) Unit of Measurement.

(D) Going Concern.

B

A journal entry includes

(A) the debit part of a transaction recorded under one date and credit part recorded under a later date.

(B) the debit and credit parts of a transaction recorded in one place.

(C) more debits than credits.

(D) none of these.

B

On each journal page, the date is written

(A) for each entry.

(B) on the first line of each column.

(C) only for the first entry.

(D) none of these.

A

On each journal page, the month is written

(A) for each entry.

(B) on the first line of each column.

(C) only for the first entry.

(D) none of these.

C

The entry to record payment of cash to the owner as a withdrawal of equity is

(A) debit Cash, credit Drawing.

(B) debit Drawing, credit Cash.

(C) debit Cash, credit Accounts Payable.

(D) none of these.

B

When cash is paid for supplies,

(A) Supplies is increased.

(B) Supplies is credited.

(C) the balance of Supplies is decreased.

(D) none of these.

A

If an error is recorded in a journal entry,

(A) cancel the error by drawing a neat line through the error.

(B) correct the entry by writing the correct item above the canceled error.

(C) do not erase the incorrect item.

(D) all of these

D

When services are sold on account, the amount is recorded in the

(A) General Debit column and Cash Credit column.

(B) General Credit column and Cash Debit column.

(C) General Debit column and Sales Credit column.

(D) General Debit column and Accounts Payable Debit column

C

When cash is paid for rent, the amount is recorded in the

(A) Cash Credit column and General Debit column.

(B) Sales Credit column and General Debit column.

(C) General Credit column and Cash Debit column.

(D) General Credit column and Sales Credit column.

A

When cash is paid on account, the amount is recorded in the

(A) Accounts Receivable Debit column and Cash Credit column.

(B) Sales Credit column and Cash Debit column.

(C) General Debit column and Cash Credit column.

(D) Cash Debit column and General Credit column.

C