Accounting Ch. 3-Journalizing

When cash is paid for insurance, which account is listed on the first line of the entry?

• Accounts Receivable
• Cash
• Pre-paid Insurance
• Asset 

When supplies are bought on account, which account is listed on the first line of the entry?

• Accounts Receivable
• Cash
• Account Payable 
• Supplies

True or False:  Transactions are recorded in a journal by date.

• True
• False 

True or False:  Source documents are one way to verify accuracy of a specific journal entry.

• True
• False

What type of source document would you utilize for the following transaction:  Received cash from owner as an investment 

• Check
• Sales invoice
  Receipt
  Memorandum
• Receipt
• Sales invoice

4 parts of a journal entry:

• date, document type, account, normal balance
• date, debit, credit, source document
• source document, date, asset, equities 
• date, account, classification, source document 

What type of source document would you utilize for the following transaction:  Paid cash for supplies

• Check
• Receipt
• Sales invoice
• Calculator Tape 

True or False:  Double-entry accounting assures that debits equals credits.

• True
• False

What type of source document would you utilize for the following transaction (if you are looking to recognize the transaction immediately):  Bought supplies on account

• Invoice
• Sales invoice
• Memorandum
• Check

True or false:  A transaction should be journalized only if it actually occurs.  

• True
• False