Question : Multiple Choice Questions 28.Which of the following statements NOT correct? A.The description : 1220536

Multiple Choice Questions

28.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.

29.Transactions in a journal are initially recorded in  

A.account number order.

B.alphabetical order.

C.chronological order.

D.dollar amount order.

30.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.

31.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.

32.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.

33.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 dollar amount debited will equal the total dollar amount credited.

34.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.

35.When recording a business transaction into the journal, certain steps are followed. Identify the statement below that is CORRECT regarding the journalizing process.  

A.An explanation is indented and entered on the line underneath the last credit in the entry.

B.All transactions are recorded first in the general ledger and then they are journalized in the journal.

C.All credited accounts are listed first and then all debited accounts are indented and listed on the next lines.

D.No dates are used in the journal.

36.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.

37.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.