Question :
Multiple Choice Questions
32. Which of the following statements not correct?
A. The description : 1197824
Multiple Choice Questions
32. 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.
33. 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.
34. 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.
35. 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.
36. 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.
37. 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.
38. 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.
39. 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.
40. 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.
41. The journal entry to record the payment of salaries should include
A. a debit to Salaries Expense and a credit to Cash.
B. a debit to Capital and a credit to Cash.
C. a debit to Cash and a credit to Salaries Expense.
D. a debit to Salaries Expense and a credit to Accounts Payable.
