Journal Entries
Source Documents
HST (Payable/Recoverable)
Objectivity GAAP
Miscellaneous
100

What is a journal entry in accounting?

A record of a financial transaction in accounting where every transaction is documented.

100

What is a source document?

Proof of a transaction.

100

What does HST stand for?

Harmonized Sales Tax.

100

What does GAAP stand for?

Generally Accepted Accounting Principles.

100

What must every journal entry include besides accounts and amounts?

Date and description of the transaction.

200

Name two things every journal entry must include.

Date of transaction, accounts involved, amounts debited/credited, or description.

200

Name two types of source documents.

Any of the two: Cash Sales Slip, Sales Invoice, Purchase Invoice, Cheque Copy, Cash Receipt, POS Summary, Bank Debit Advice, Bank Credit Advice.

200

Who collects HST Payable?

Businesses, on behalf of the government.

200

What is the objectivity principle?

Accountants must not make up or estimate transaction values (except for some non-cash transactions).

200

Name a source document used for bank transactions.

Bank Debit Advice or Bank Credit Advice.

300

True or False: Every transaction affects at least two accounts.

True.

300

Which source document shows a sale made for cash?

Cash Sales Slip.

300

What is HST Recoverable?

Tax a business pays on its purchases, which can be reclaimed.

300

Why is objectivity important?

It ensures financial statements are reliable and trustworthy.

300

Which account tracks HST collected from customers?

HST Payable.

400

Give an example of a journal entry description.

For example: "Paid rent with cheque."

400

What is the role of source documents in accounting?

They support revenue and expenses by providing proof of transactions.

400

Is HST Recoverable an expense?

No, because it can be reclaimed.

400

Give an example of a transaction where objectivity may not fully apply.

Amortization (where calculation backup is required instead).

400

How do source documents relate to the objectivity principle?

They provide objective proof for accounting entries.

500

What is the main purpose of a journal entry?  

To keep a complete record of all financial transactions.

500

Why are source documents important for audits?

They serve as evidence to verify transactions.

500

How do HST Payable and HST Recoverable affect the final tax remittance?

HST Payable minus HST Recoverable = HST owed to the government.

500

Who relies on objective financial statements?

Investors, regulators, and other stakeholders.

500

What is the result of not following objectivity in accounting?

Financial statements may not be trusted or reliable.