Information in a journal includes the debit and credit parts of each transaction recorded in one place.
True
The Objective Evidence accounting concept requires that there be proof that a transaction did occur.
True
Examples of source documents include checks, sales invoices, receipts, and memorandums.
True
A memorandum is the source document used when items are paid in cash.
False
A receipt is the source document for cash received from transactions other than sales.
True
A calculator tape is the source document for daily sales.
True
The source document sales invoice is abbreviated as S in a journal entry.
True
To correct an error in a journal, simply erase the incorrect item and write the correct item in the same place.
False
The accounts affected when cash is received from the owner as an investment are Cash and Sales.
False
When cash is paid for supplies, the Cash account is debited.
False
When cash is used to pay for insurance. The asset account Prepaid Insurance increases.
True
The source document used when supplies are ordered by telephone on account is a memorandum.
True
The source document used when supplies bought on account are paid for is a receipt.
False
When cash is received from sales, both the Cash account and the Sales account are increased.
True
When services are sold on account, an asset account and a liability account are affected.
False
The accounts affected when paying cash for equipment rental are Equipment Rental Expense and Cash.
True
When cash is received on account, one asset account increases and another asset account decreases.
True
The accounts affected when paying cash to the owner for a withdrawal of equity are the capital account and Cash.
False
If there is only one blank line remaining on a journal page, it is standard practice to split the entry and record the second line of the entry on the next page.
False
If an error is detected in a journal entry after several additional journal entries have been made, the entry should be corrected by drawing a line through the incorrect parts and writing the correct parts on the same line above the error.
True