Test Review Chapter 3

A form for recording transactions in chronological order is called a(n):

• journal
• account
• statement
• source document

Transactions are recorded in a journal in order by date. This is also called:

• alphabetical record
• chronological record
• order of importance
• amounts least to greatest

Information for each transaction recorded in a journal is called an entry.

• True
• False

A business paper from which information is obtained for a journal entry is called a(n):

• invoice
• receipt
• source document
• check

A form describing the goods or services sold, the quantity, and the price is called a(n):

• receipt
• memorandum
• invoice
• proof of purchase.

Which of the following is not part of an entry?

• debit
• source document
• signature
• date

Account balances increase on the normal balance side of an account.

• True
• False

A business form giving written acknowledgment for cash received is called a sales invoice.

• True
• False

A business form ordering a bank to pay cash from a bank account is called a(n):

• affidavit
• lien
• order
• check

An owner drawing account has a normal debit balance.

• True
• False