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Accounting Chapter 3

Total questions: 25

Worksheet time: 10mins

Name
Class
Date
1.

When cash is paid on account, the amount is recorded how?

a)
b)
c)
d)
2.

When cash is received from sales, the amount is recorded in the

a)
b)
c)
d)
3.

When services are sold on account, the amount is recorded in the

a)
b)
c)
d)
4.

Recording transactions in a journal.

(a)  

5.

An invoice used as a source document for recording a sale on account.

a)

receipt

b)

sales invoice

c)

invoice

d)

memorandum

6.

A business form ordering a bank to pay cash from a bank account.

(a)  

7.

A business paper from which information is obtained for a journal entry.

a)

memorandum

b)

journal

c)

source document

d)

invoice

8.

Determining that the amount of cash agrees with the accounting records.

(a)  

9.

Which of these are source documents?

a)

Sales invoice

b)

Sticky notes

c)

Sales tape

d)

Excel worksheet

e)

Check stub

10.

Transactions are recorded in a journal in chronological order.

a)

True

b)

False

11.

Every business uses the same journal to record transactions.

a)

True

b)

False

12.

Double lines are ruled across a journal’s amount columns to indicate that the totals have been verified as correct.

a)

True

b)

False

13.

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

a)

True

b)

False

14.

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

a)

True

b)

False

15.

A single line ruled across the journal’s amount columns indicate

a)

the date is the last day of the month

b)

the totals have been verified as correct

c)

that columns are to be totaled

d)

none of these

16.

When cash is paid for rent, the amount is recorded in the

a)
b)
c)
d)
17.

If an error is recorded in a journal entry

a)

cancel the error by drawing a neat line through the error

b)

correct the entry by writing the correct item above the canceled error

c)

do not erase the incorrect item

d)

all of these.

18.

When cash is paid for supplies

a)

Supplies is increased

b)

Supplies is credited.

c)

the balance of Supplies is decreased

d)

none of these

19.

The entry to record payment of cash to the owner as a withdrawal of equity is

a)

debit Cash, credit Drawing.

b)

debit Drawing, credit Cash

c)

debit Cash, credit Accounts Payable.

d)

none of these

20.

The source document for all cash payments is a check

a)

True

b)

False

21.

Paid cash for insurance

a)

E

b)

F

c)

G

d)

H

e)

I

22.

Paid cash to owner as a withdrawal of equity.

a)

E

b)

F

c)

G

d)

H

e)

I

23.

Received cash from sales

a)

E

b)

F

c)

G

d)

H

e)

I

24.

Bought supplies on account

a)

E

b)

F

c)

G

d)

H

e)

I

25.

Sold services on account

a)

E

b)

F

c)

G

d)

H

e)

I