Accounting Chapter 3 Review

Which of the following is an asset account?

• Insurance Expense

• Accounts Payable

• Owner Drawing

• Accounts Receivable

Which of the following is not an acceptable form of source documentation?

• Receipt

• Handwritten IOU

• Invoice

• Calculator Tape

Which two accounts are impacted when a business purchases supplies on account?

• Supplies and Accounts Payable

• Accounts Receivable and Supplies

• Supplies and Cash

• Supplies and Owner Equity

When selling services on account, how is cash impacted?

• It increases

• It decreases

• It stays the same

What two accounts are affected when a business pays cash for a cell phone bill?

• Accounts Payable and cash

• Utilities Expense and Cash

• Utilities Expense and Accounts Payable

• Utilities Expense and Accounts Receivable

Which two accounts are impacted when the owner takes cash for personal use?

• Cash and Owner Capital

• Owner Drawing and Cash

• Cash and Accounts Payable

• Owner Drawing and Owner Capital

Are revenue accounts increased on the debit side or credit side?

• Debit

• Credit

In what order are transactions recorded in a journal?

• Date Order

• Credit then debit

• Assets first

• Liabilities first

Which is the standard source document for cash payments?

• Memo

• Invoice

• Receipt

• Check

A business form giving written acknowledgement for cash received is called a/an...?

• invoice

• receipt

• check

• memorandum