General Journal
This part of a journal entry explains why the transaction happened.
What is the explanation?
What needs to be included in the date column for the opening entry of a journal?
What is the month, day and year?
Debits always appear on this side of a T-account.
What is the left side?
Cash is what type of account?
What is an asset?
This equation forms the foundation of accounting.
What is Assets = Liabilities + Owner’s Equity?
This is the order in which the accounts are written in a journal entry.
What is debit first, credit second?
What needs to be included in the date column AFTER the first entry?
Just the day.
These types of accounts increase with a credit.
What are liabilities, owner’s equity, or revenue?
Accounts Payable belongs to this category.
What are liabilities?
This type of business organization is owned by one person.
What is a sole proprietorship?
The formal name for recording a business transaction in the journal.
What is journalizing/a journal entry?
This type of source document supports a cash received transaction.
What is a cash receipt?
Cash is increased with this type of entry.
What is a debit?
Owner withdrawals belong to this category.
What is owner’s equity (specifically drawings)?
This principle states that accountants must record information without personal bias.
What is objectivity?
This is a document that information from the general journal will come from.
What is a source document?
This source document is a business form showing the details of a transaction in which goods or services are sold on account.
Sales Invoice
Revenue increases equity. Because of this, revenue increases with this type of entry.
What is a credit?
This type of account tracks what a business earns from sales or services.
What is revenue?
The financial statement that reports a company’s revenues and expenses.
What is the income statement?
This is the main reason each journal entry must have equal debits and credits.
What is to keep the accounting equation in balance?
This source document shows all the debit and credit transactions that occurred during a day.
What is a POS summary?
Mr. Reid makes a 1000 payment on his home via cheque, with 900 of it returning the cost of the loan and 100 being the interest payment. Which accounts are debited and credited?
Debit Loan Payable 900 and Interest Expense 100, Credit Bank Balance 1000
This category includes items like supplies, equipment, and accounts receivable.
What are assets?
This principle states that expenses must be matched with the revenues they help generate.
What is the matching principle?