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Chapter 03—Journalizing Transactions 2025

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

The source document for all cash payments is a check.

a)

True

b)

False

2.

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

a)

True

b)

False

3.

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

a)

True

b)

False

4.

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

a)

True

b)

False

5.

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

a)

True

b)

False

6.

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

a)

True

b)

False

7.

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

a)

True

b)

False

8.

Transactions are recorded in a journal in chronological order.

a)

True

b)

False

9.

A complete journal entry consists of the date, the debit amount, the credit amount, and a source document.

a)

True

b)

False

10.

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

11.

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

a)

True

b)

False

12.

Cash is always proved at the end of a month.

a)

True

b)

False

13.

Every business uses the same journal to record transactions.

a)

True

b)

False

14.

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

a)

True

b)

False

15.

On each journal page, the date is written

a)

for each entry.

b)

only for the first entry.

c)

on the first line of each column.

d)

none of these.

16.

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.

17.

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.

18.

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

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.

19.

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.

20.

When cash is received on account, the amount is recorded in the

a)

Sales Credit column and Cash Debit column.

b)

General Debit column and Cash Credit column.

c)

Accounts Receivable Credit column and Cash Debit column.

d)

General Debit column and Accounts Payable Debit column.

21.

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

a)

Sales Credit column and Cash Debit column.

b)

Sales Debit column and Cash Credit column.

c)

General Credit column and Cash Debit column.

d)

General Debit column and Cash Credit column.

22.

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

a)

Accounts Receivable Debit column and Cash Credit column.

b)

General Credit column and Cash Debit column.

c)

Accounts Receivable Debit column and Sales Credit column.

d)

General Debit column and Accounts Payable Debit column.

23.

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

a)

Cash Credit column and General Debit column.

b)

Sales Credit column and General Debit column.

c)

General Credit column and Cash Debit column.

d)

General Credit column and Sales Credit column.

24.

When cash is paid on account, the amount is recorded in the

a)

Accounts Payable Debit column and Cash Credit column.

b)

Sales Credit column and Cash Debit column.

c)

General Debit column and Cash Credit column.

d)

Cash Debit column and General Credit column.