Final Exam Revision Ch3,4 Acc.

The following transactions were recorded in Sunny Skies Landscaping's Accounts Receivable T-account:

1. Debit: $2,000 (Service provided on credit)

2. Credit: $1,200 (Payment received from a customer)

3. Debit: $1,500 (Another service provided on credit)

4. Credit: $800 (Another customer paid off their balance)

What is the final balance in the Accounts Receivable T-account, and what type of balance is it?

• • A) $1,500 (Debit Balance)

• • B) $1,700 (Credit Balance)

• • C) $2,500 (Credit Balance)

• • D) $1,700 (Debit Balance)

What type of account increases with a credit? (an account that has a credit normal balance)

• • A) Expenses

• • B) Assets

• • C) Revenues

• • D) Owner’s Drawings

The business receives $1,000 from a customer for a service previously performed on credit. What is the correct accounting treatment for this transaction?

• • A) Cash is debited, Accounts Receivable is credited

• • B) Accounts Receivable is debited, Cash is credited

• • C) Service Revenue is debited, Cash is credited

• • D) Cash is credited, Service Revenue is debited

Which document is used to prove that a transaction has occurred?

• • A) Trial Balance

• • B) Source Document

• • C) General Ledger

• • D) Journal Entry

What does the Posting Reference column in the general ledger contain?

• • A) The date of the transaction

• • B) A description of the transaction

• • C) The general journal page number

• • D) The account balance

What is the purpose of the ledger in accounting?

• • A) To document source transactions

• • B) To calculate total revenue for the business

• • C) To maintain a separate form for each account

• • D) To record transactions in chronological order

Which document is issued to request payment for goods or services provided on credit?

• • A) Receipt

• • B) Invoice

• • C) Credit Memo

• • D) Check Stub

14. Which document represents an order placed by a business to purchase goods on credit?

• • A) Sales Slip

• • B) Purchase Order

• • C) Credit Memo

• • D) Invoice

What does a trial balance help ensure?

• • A) That total debits equal total credits in the ledger

• • B) That accounts are organized in alphabetical order

• • C) That all source documents are accounted for

• • D) That the financial statements are complete

Which source document is issued when a customer returns goods and receives a credit?

• • A) Receipt

• • B) Credit Memo

• • C) Purchase Order

• • D) Invoice