Accounting Ch. 3 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

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

• true

• false

The journal columns used to record receiving cash from the owner as an investment are Cash Debit and Sales Credit.

• true

• false

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

• true

• false

A transaction recorded in a journal is not considered a permanent record.

• true

• false

Transactions are recorded in a journal in chronological order.

• true

• false

A complete journal entry consists of the date, the debit amount, the credit amount, and a source document.

• true

• false

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

• true

• false