Recording Transactions
In what order are transactions recorded in a journal?
Chronological
A business paper from which information is obtained for a journal entry is called a
Source Document
When cash is paid for supplies the cash account is ___.
Credited
Recording transactions in a journal is called...
Journalizing
A business form ordering a bank to pay cash from
a bank account is called a
Check
When cash is paid for insurance, which account is listed on the first line of the entry?
Prepaid Insurance
List the four parts of a journal entry.
Date
Debit
Credit
Source document
An invoice used as a source
document for recording a sale on account is called a
Sales Invoice
When cash is received from sales, which account is listed on the second line of the entry?
Sales
A form for recording transactions in
chronological order is called a
Journal
When cash is paid for any reason, what abbreviation is used for the source document?
C (Check)
When supplies are bought on account, which account is listed on the second line of the entry?
Accounts Payable
The recording of debit and credit parts of
a transaction is called
Double Entry Accounting
A form on which a brief message is written to describe a transaction is called a
Memorandum
When cash is paid on account, which account is listed on the second line of the entry?
Cash