Vocabulary
An invoice used as a source document for recording a sale on account.
What is a sales invoice?
A business form giving written acknowledgement for cash received.
What is a receipt?
True or False: The objective evidence accounting concept requires that there be proof that a transaction did occur.
What is TRUE?
True or False: The source document for cash payment transactions is a check.
What is TRUE?
Reference the check number in the source document column.
Paid cash for one month's rent.
Debit : Rent Exp
Credit: Cash
A form for recording transactions in chronological order.
What is a journal?
The recording of debit and credit parts of a transaction.
What is double entry accounting?
What is TRUE?
True or False: The day of the month is written only once on a journal page.
What is FALSE?
The day of the month is written for each transaction.
What is:
Debit: Cash
Credit: Sales
A form on which a brief message is written to describe a transaction.
What is a memorandum?
A business paper from which information is obtained for a journal entry.
What is a source document?
True or False: The account debited in a journal is indented.
What is FALSE?
Debits always come first in an entry and the Credit is slightly indented below it.
True or False: Every business uses the same journal to record transactions.
What is FALSE?
Each business has their own chart of accounts they use to record transactions.
Sold service on account to Kay's Cafe.
What is:
Debit: A/R - Kay's
Credit: Sales
Recording transaction in a journal.
What is journalizing?
A business form ordering a bank to pay cash from a bank account.
What is a check?
True or False: To correct an error in a journal, one can simply erase the incorrect item and write the correct item in the same place.
What is FALSE?
Draw a straight line through the mistake and write the the correct amount above it.
What is FALSE?
A transaction recorded IS considered a permanent record.
Paid Cash on Account to Superior Pipe.
What is :
Debit: A/P - Superior
Credit: Cash
This form describes the goods or services sold, the quantity, the price, and the terms of sale.
What is an invoice?
Information for each transaction recorded in a journal.
What is an entry?
True or False: Transactions are recorded in a journal in chronological order.
What is TRUE?
Transactions are recorded in date order.
True or False: The source document used when supplies are bought on account is a memorandum.
What is True?
Because payment has not been made it is a memorandum if supplies were bought for cash the source document would be a check number.
Paid cash to owner for personal use.
What is:
Debit: Owner's Drawing
Credit: Cash