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| 1 | |
Which of the following statements is not correct? |
| | A) | The description of a journal entry should include a reference to the source of the information contained in the entry. |
| | B) | If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction. |
| | C) | The credit portion of a general journal entry is always recorded first. |
| | D) | A firm should be able to trace amounts through the accounting records and back to their source documents. |
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| 2 | |
When an entry is made in the general journal, |
| | A) | the accounts to be credited should be indented. |
| | B) | the first account entered should be indented. |
| | C) | liability, capital, and revenue accounts should be indented. |
| | D) | asset accounts should be indented. |
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| 3 | |
When an entry is made in the general journal, |
| | A) | assets should be listed first. |
| | B) | accounts to be debited should be listed first. |
| | C) | accounts to be increased should be listed first. |
| | D) | accounts may be listed in any order. |
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| 4 | |
The journal entry to record the sale of services on credit should include |
| | A) | a debit to Accounts Receivable and a credit to Capital. |
| | B) | a debit to Cash and a credit to Accounts Receivable. |
| | C) | a debit to Fees Income and a credit to Accounts Receivable. |
| | D) | a debit to Accounts Receivable and a credit to Fees Income. |
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| 5 | |
If a transaction is properly analyzed and recorded, |
| | A) | only two accounts will be used to record the transaction. |
| | B) | one account balance will increase and another will decrease. |
| | C) | one asset account will be debited and one liability account will be credited. |
| | D) | the total amount debited will equal the total amount credited. |
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| 6 | |
The journal entry to record the payment of a monthly utility bill would include |
| | A) | a debit to Utilities Expense and a credit to Capital. |
| | B) | a debit to Capital and a credit to Cash. |
| | C) | a debit to Utilities Expense and a credit to Cash. |
| | D) | a debit to Utilities Expense and a credit to Accounts Payable. |
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| 7 | |
The journal entry to record the performance of services for cash would include |
| | A) | a debit to Cash and a credit to Fees Income. |
| | B) | a debit to Fees Income and a credit to Cash. |
| | C) | a debit to Cash and a credit to Accounts Receivable. |
| | D) | a debit to Accounts Receivable and a credit to Cash. |
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| 8 | |
The journal entry to record the receipt of cash from credit clients on account would include |
| | A) | a debit to Cash and a credit to Fees Income. |
| | B) | a debit to Fees Income and a credit to Cash. |
| | C) | a debit to Cash and a credit to Accounts Receivable. |
| | D) | a debit to Accounts Receivable and a credit to Cash. |
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| 9 | |
The journal entry to record the withdrawal of cash by Sue Snow, the owner, to pay a personal utility bill would include |
| | A) | a debit to Sue Snow, Capital, and a credit to Cash. |
| | B) | a debit to Utilities Expense and a credit to Cash. |
| | C) | a debit to Sue Snow, Drawing and a credit to Cash. |
| | D) | a debit to Sue Snow, Drawing and a credit to Utilities Expense. |
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| 10 | |
The journal entry to record a payment made in January for rent for the months of February and March would include |
| | A) | a debit to Sue Snow, Capital, and a credit to Cash. |
| | B) | a debit to Rent Expense and a credit to Cash. |
| | C) | a debit to Prepaid Rent and a credit to Cash. |
| | D) | a debit to Sue Snow, Drawing and a credit to Rent Expense. |
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