Accounting Source Documents Quiz

What is the primary purpose of an invoice in accounting?

• To record a company's internal transactions

• To request payment from a customer

• To provide a receipt to a customer

• To record a payment received

Which document serves as proof of payment to the payer?

• Invoice

• Receipt

• Purchase order

• Sales order

When recording a transaction in a journal, which of the following information is NOT typically included?

• Date of the transaction

• Names of the accounts affected

• The physical location where the transaction took place

• Debit and credit amounts

In double-entry bookkeeping, if you debit the Cash account, what must happen to another account?

• It must also be debited.

• It must be credited.

• It must not change.

• It can either be debited or credited, depending on the transaction.

Which of the following is NOT a characteristic of a receipt?

• It is issued by the seller.

• It acknowledges payment received.

• It is used to request payment.

• It serves as proof of transaction for the buyer.

Which account is typically credited when a sale is made on credit?

• Cash

• Sales Revenue

• Accounts Receivable

• Inventory

What is the main difference between an invoice and a receipt?

• An invoice is issued before a payment is made, while a receipt is issued after.

• A receipt is issued before a payment is made, while an invoice is issued after.

• An invoice is used for internal transactions, while a receipt is for external transactions.

• There is no significant difference; they are interchangeable.

In the context of journal entries, what does the term "debit" signify?

• An increase in a liability or equity account

• A decrease in an asset account

• An increase in an asset account

• A decrease in a revenue account

Which of the following accounts would typically be debited when inventory is purchased on credit?

• Cash

• Accounts Payable

• Inventory

• Sales Revenue

What is the purpose of balancing accounts in the ledger?

• To ensure that all transactions have been recorded

• To determine the net effect of all transactions on each account

• To transfer balances to the trial balance

• To identify errors in the journal entries