Accounting I Review - Chapters 1 through 6

The amount of the supplies used during a fiscal period is an expense.

• True
• False

An amount recorded on the right side of a T account is a Debit.

• True
• False

Each asset account has a normal credit balance.

• True
• False

Each liability account has a normal debit balance.

• True
• False

The source document for all cash payments is a check.

• True
• False

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

• True
• False

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

• True
• False

If an amount is written in an incorrect column of a work sheet, the error should be erased and the amount should be written in the correct column.

• True
• False

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

• True
• False

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

• True
• False