Account Titles
What are the account titles used for cash received from sales?
Cash and Sales
Is cash received from a customer a debit or a credit?
Debit
What is the main purpose of a journal in accounting?
To record business transactions
A form recording transactions in chronological order
Journal
What is source document used to record a sale?
Sales Invoice
Name an account that is increased by a credit.
Sales
Capital
Accounts Payable
When recording an expense, should you debit or credit the expense account?
Debit
How often should transactions be recorded in the journal?
Daily, as they occur
The recording of debit and credit parts of a transaction
Double-entry accounting
Describe the purpose of a receipt as a source document.
It is proof that the transaction occurred
What account is used to record amounts owed to suppliers?
Accounts Payble
What is the effect of a credit on a liability account?
It increases the liability account
When do you write the month of the transaction?
On the first line only.
Determining the amount of cash agrees with the accounting records
Proving Cash
What source document is used for all cash payments?
Check
Identify the account that represents the owner's equity in a business.
Capital
When paying off a loan, what type of entry is made for the cash account?
Credit
What is a compound journal entry?
A journal entry that affects more than two accounts.
An invoice used as a source document for recording a sale on account
Memorandum
Who fills out a cash receipt?
The owner receiving the cash
What is the account title when you receive cash from sales?
Check Mark
If you sell an asset for cash, how do you record the transaction in terms of debits and credits?
Debit Cash, Credit the Asset account
How many columns are in a multicolumn journal?
5
A form on which a brief message is written to describe a transaction
Source Document
What information is typically found on an invoice?
Date, amount, description of goods or services, payment terms, and the total due.