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Chapter 3 Test A
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Part 1 - Defining Accounting Terms
Directions: Select the one term in Column I that best fits each definition for the questions listed below. There is a pull-down menu where you will select the letter identifying your answer choice.
Column I
A. Check
B. Double-Entry Accounting
C. Entry
D. General Journal
E. Invoice
F Journal
G. Journalizing
H. Memorandum
I. Receipt
J. Sales Invoice
K. Source Document
1. A form on which a brief message is written describing a transaction.
*
1 point
Choose
F.
G.
H.
J.
D.
C.
A.
K.
B.
E.
I.
2. Recording transactions in a journal.
*
1 point
Choose
D.
K.
I.
G.
B.
H.
A.
C.
F.
J.
E.
3. The money paid for employee services.
*
1 point
Choose
C.
A.
J.
E.
F.
I.
G.
H.
B.
D.
K.
4. A business form used to record details affecting payments made to an employee.
*
1 point
Choose
A.
D.
C.
B.
G.
H.
K.
J.
F.
E.
I.
5. A federal tax paid for hospital insurance.
*
1 point
Choose
B.
C.
G.
H.
F.
K.
D.
I.
A.
J.
E.
6. The maximum amount of earnings on which a tax is calculated.
*
1 point
Choose
A.
I.
E.
J.
C.
K.
F.
G.
H.
D.
B.
7. A business form used to record payroll information.
*
1 point
Choose
I.
G.
B.
J.
E.
H.
A.
D.
C.
F.
K.
8. The period covered by a salary payment.
*
1 point
Choose
F.
I.
J.
K.
C.
A.
G.
E.
D.
B.
H.
9. The total earnings paid to an employee after payroll taxes and other deductions.
*
1 point
Choose
D.
G.
B.
K.
C.
H.
A.
J.
E.
F.
I.
10. A deduction from total earnings for each person legally supported by a taxpayer, incluidng the employee.
*
1 point
Choose
B.
I.
K.
C.
J.
G.
F.
H.
A.
D.
E.
11. A federal tax paid for old-age, survivors, and disability insurance.
*
1 point
Choose
I.
J.
C.
F.
E.
G.
D.
B.
K.
H.
A.
Part 2 - Analyzing Accounting Concepts and Practices
Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements are true or false.
1. The source document for all cash payments is a sales invoice.
*
1 point
False
True
2. A receipt is the source document for cash received from transactions other than sales.
*
1 point
True
False
3. A calculator tape is the source document for daily sales.
*
1 point
False
True
4. The source document used when supplies are bought on account is a memorandum.
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1 point
True
False
5. Receiving cash from sales increases one account and decreases another.
*
1 point
False
True
6. To correct an error in a journal, erase the incorrect item and replace with the correct item.
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1 point
True
False
7. A transaction recorded in a journal is not considered a permanent record.
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1 point
True
False
8. Transactions are recorded in a journal in chronological order.
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1 point
False
True
9. A complete entry consists of the date, the debit amount, and the credit amount.
*
1 point
True
False
10. The day of the month is written on each journal page only for the first entry.
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1 point
False
True
11. A general journal page is complete when there is insufficient space to record any more entries.
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1 point
False
True
12. Each general journal entry requires at least two lines.
*
1 point
True
False
13. The Objective Evidence accounting concept requires proof that a transaction did occur.
*
1 point
False
True
14. Businesses usually wait until the end of a week to journalize the week's transactions.
*
1 point
True
False
15. Errors in general journal entries should be erased and corrected as soon as they are discovered.
*
1 point
False
True
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