Chapter 3 Accounting Review

The Objective Evidence accounting concept requires that there be proof that a transaction did occur.

• True

• False

The source document for cash received from transactions other than sales is:

• receipt

• memorandum

• sales invoice

The title of the debit account in a journal is indented.

• True

• False

Each journal entry requires at least 2 lines.

• True

• False

To correct an error in the journal, you can erase the incorrect item and write the correct item in the same place.

• True

• False

Transactions in a journal are recorded in this order:

• chronological

• alphabetical

• descending order by amount

The source document for a cash payment is:

• check

• invoice

• memorandum

The 4 steps to journalizing transactions are date, debit, credit, and source document.

• True

• False

The day of the month is written only once on a journal page.

• True

• False

When an entry in an amount column is an even dollar amount, either "00" or "--" can be entered into the cents column.

• True

• False