Accounting 1 Review

What source document is used for a daily cash sale?

• Memorandum
• Calculator Tape
• Receipt
• Sales Invoice

"Purchased something on account" is the definition of what source document?

• Memorandum
• Checks
• Sales Invoice
• Receipts

James received cash from the owner as an investment. What two accounts are effected?

• Cash/Sales
• Cash/Capital
• Capital/Sales
• Accounts Payable/Cash

Stephany paid cash for supplies. What is the normal balance for supplies?

• Debit
• Credit

Dennis bought supplies on account to Target Co. What is the normal balance for Target Co. after it has been journalized?

• Credit
• Debit

The transaction, "Sold services on account", will affect both sales and...

• Capital
• Sales
• Accounts Receivable
• Accounts Payable

True or False - if you paid cash to the owner for personal use, Cash and Drawing are your accounts affected.

• False
• True

True or False - Accounts payable is an amount a company owes because it bought services on account.

• True
• False

Which account will always be written first down in the general journal?

• the account debited
• the account credited
• does not matter
• no right answer

When journalizing a transaction, what will you always write first?

• The Date
• Doc.No
• The account titles
• the account debited