accounting- ch. 6 – Flashcards
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a(n) __ is the source document that shows the date of a business transaction, the items purchased, the quantity of each item, and the cost of each item - involves the buying or selling of an item
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invoice (source document)
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a sequence of business activities completed throughout a fiscal period to keep accounting records in an orderly fashion is the __
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accounting cycle
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a chronological record of business transactions is a(n) __
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journal
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recording business information by hand is done in a(n) __
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manual accounting system
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the process of recording business transactions in a journal is called __
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journalizing
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a brief message written to describe a transaction that takes place within a business is a(n) __ -describe a transaction
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memorandum (source document)
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an all-purpose journal in which all transactions of a business may be recorded is the __
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general journal
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1. collect source documents & verify the financial information 2. analyze business transactions into their debt and credit parts 3. record the debit & credit parts of each business transaction in a journal 4. post each journal entry to the ledger accounts 5. prepare a trial balance 6. prepare a work sheet to summarize the financial information for the accounting period 7. prepare the financial statements 8. record & post the closing entries 9. prepare a post-closing trial balance
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the accounting cycle steps *be sure to know the first 3
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false
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a fiscal year is an accounting period that begins on January 1 and ends on December 31 (t/f)
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false
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when recording a business transaction, the amount always entered first because it is the most important part of the journal entry (t/f)
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true
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a source document is a business paper that proves a transaction occurred (t/f)
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true
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a journal is sometimes called a "book" of original entry because it is the only place in which the details of the transaction are recorded (t/f)
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false
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a check was written on April 15. It is being recorded today, April 17. The date used for recording the transaction is April 17. (t/f)
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true
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the analysis of a business transaction into its debit and credit parts is required for both manual and computerized accounting systems (t/f)
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true
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the different kinds of source documents a business uses depends on the nature of the transaction (t/f)
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true
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if an error is discovered before posting occurs, simply draw a line through the incorrect item and write the correct item above it (t/f)
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false
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the debit part of a business transaction should be indented one-half inch from the left edge of the paper (t/f)
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true
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the accounting cycle is a series of activities a business completes over a period of time (t/f)
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twelve months
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most business use an accounting period of...
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invoice
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a form listing specific information about a business transaction that involves the buying and selling of goods is a...
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Jan. 1 - Dec. 31
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a calendar year accounting period...
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memorandum
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a __ source document is used within businesses
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date, debit account title & amount, credit account title & amount, source document or explanation
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the following are entered with each transaction...
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