Source Document
This document is used as a source for recording a sale on account.
Sales Invoice
This is the term for recording transactions in chronological order.
When you buy supplies with cash, which account is credited?
Cash
Where do you find the year and month written on a journal page?
In the Date column on the first line
You use this business form when you receive cash from a customer.
Reciept
True or False: You should always record the credit part of a transaction first.
False (Debits are always recorded first)
If you "Buy on Account," which liability account is increased?
Accounts Payable
If you make a mistake in a journal, what is the standard way to fix it?
Draw a single line through it and write the correction above.
This is the document used when you order a bank to pay cash from your account.
Check
This is the column where you write the abbreviation for the source document (ex. C1 or R1).
Doc. No. column
When the owner takes money out for personal use, which account is debited?
(Owner's Name), Drawing
What do you do when you run out of room on a journal page?
Total the columns and carry them forward to a new page
When no other document fits a transaction, you use this brief written message.
Memorandum(Memo)
This type of accounting records both the debit and credit parts of a transaction.
Double-entry Accounting
To record "Received cash from sales," which two accounts are used?
Cash (Debit) and Sales (Credit)
What is the source document for daily cash sales recorded from a machine?
Calculator Tape
Name the four steps, in order, to journalize a transaction.
1. Date, 2. Debit, 3. Credit, 4. Source Document