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Journalizing Transactions

Total questions: 21

Worksheet time: 12mins

Name
Class
Date
1.

Transactions are recorded in a journal in chronological order

a)

True

b)

False

2.

The source document used when supplies are bought on account is a memorandum.

a)

True

b)

False

3.

To correct an error in a journal, one can simply erase the incorrect item and write the correct item

a)

True

b)

False

4.

A receipt is the source document for cash received from transactions other than sales.

a)

True

b)

False

5.

The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.

a)

True

b)

False

6.

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

a)

True

b)

False

7.

A general journal page is complete when there is insufficient space to record any more entries

a)

True

b)

False

8.

When an entry in an amount column is an even dollar amount, either “00” or “--” can be entered in the cents column.

a)

True

b)

False

9.

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.

10.

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.

11.

The source document for all cash payments is a check.

a)

true

b)

false

12.

The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.

a)

true

b)

false

13.

A general journal page is complete when there is insufficient space to record any more

entries.

a)

True

b)

False

14.

The source document used when supplies are bought on account is a memorandum.

a)

true

b)

false

15.

In double-entry accounting, each transaction affects at least two accounts.

a)

true

b)

false

16.

The Business Entity concept requires proof that a transaction did occur.

a)

True

b)

False

17.

Every business uses the same journal to record transactions.

a)

True

b)

False

18.

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

a)

T Account

b)

Journal

c)

Equity

d)

Special Amount Column

19.

Recording transactions in a journal is called

a)

Boring

b)

Journalizing

c)

Normalizing

d)

Accounting

20.

This is an example of:

a)

Calculator tape

b)

Memorandum

c)

Check

d)

Sales Invoice

21.

Match the correct source document picture to its name

a)

1.

Check

b)

2.

Sales Invoice

c)

3.

Memorandum

d)

4.

Calculator Tape

e)

5.

Receipt