13) Which of the following sequences is the normal sequence of flow of accounting data? A) Ledger →Journal →Source document B) Journal →Source document →Ledger C) Source document →Journal →Ledger
D) Source document →Ledger →Journal Answer: C Diff: 1 LO: 2-3 AACSB: Concept AICPA Functional: Measurement 14) Which of the following is a source document that provides the evidence and data for accounting transactions? Diff: 1 LO: 2-3 AACSB: Concept AICPA Functional: Measurement 15) A business purchased $3,500 of office supplies for cash. Which of the following sets of ledger accounts reflect the posting of this transaction?
Diff: 2 LO: 2-3 AACSB: Application AICPA Functional: Measurement 16) A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later time. Which of the following would be true at the time the invoice is issued? Diff: 2 LO: 2-3 AACSB: Application AICPA Functional: Measurement 17) Sandra invests $40,000 in her new business by depositing the cash in the business's bank account. Which of the following accounts will be debited? A) Accounts Receivable B) Cash C) Sandra, Capital D) Accounts Payable Answer: B Diff: 2 LO: 2-3 AACSB: Application
AICPA Functional: Measurement 18) Sandra invests $40,000 in her new business by depositing the cash in the business's bank account. Which of the following accounts will be credited? Diff: 2 LO: 2-3 AACSB: Application AICPA Functional: Measurement 19) A business purchases equipment for $8,000 cash. Which of the following accounts will be debited? 1.John starts business with $100,000 cash. The John's capital account will be credited by 100,000. Hide answer 2.John purchases supplies for $500 cash. The supplies account will be debited. Hide answer
3.John purchases merchandise for $5,000 on account. The accounts payableaccount will be credited. Hide answer 4.Merchandise are sold to a customer on account. The sales account will be credited. Hide answer 5.$4,800 cash is paid to a creditor and a cash discount of $200 is received from him. The accounts payable will be debited by $5,000. Hide answer 6.$800 cash is paid to a worker as his monthly salary. The account to be debited is salary. Hide answer 7.Supplies costing $100 are used during the month. Supplies expenseaccount will be debited and supplies account will be credited. .A process that involves finding the names and nature of accounts in a transaction and applying the rules of debit and credit on those accounts is known as analysis of transaction.
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