Funeral Service Management 165 Chapter 4

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the last step to describe the flow of data from source documents to the trial balance would be

preparing a trial balance

purchase of goods or services

purchase invoices received from suppliers

purchase invoices received from suppliers

purchase of goods or services

cross-refference

the information in the posting reference columns of the journal and ledger that provides a link between the journal and ledger

CHART OF ACCOUNTS: 1, 2, 3, 4, 5

1- assets 2- liabilities 3- owners equity 4- revenues 5- expenses

describe the flow of data from the source documents to the trial balance

1. analyze transactions using source documents and chart of accounts 2. processing - enter business transactions in the general journal "journalizing" 3. processing- post the entries in the general ledger "posting" 4. processing from the general ledger prepare a trial balance

a revenue account will begin with the number _____ in the chart of accounts

4

the journal entry to match an investment of $7000 in cash and $3000 in equipment would be

CASH $7000 EQUIPMENT 3000 J Bailey Capital, 10000

a check stub serves as a source document for what kind of transaction

CASH PAYMENT

true or false After posting journal information to the ledger accounts, a check mark should be entered in the Posting Reference column of the journal to indicate that the transaction item has been posted.

FALSE

true or false The posting reference, amount, and description are the three items of information about each transaction that should be entered in the ledger accounts.

FALSE - never enter anything in the LEDGER description other than adjusting, correcting, closing, or reversing

TRUE or FALSe the chart of accounts lists capital accounts first, followed by liabilities, assets, expenses and revenue.

FALSE ALOERE

true or false Entering transactions in a journal is called recording.

FALSE entering transaction in the journal is called JOURNALIZING

true or false The process of copying the debits and credits from the journal to the ledger accounts is known as journalizing.

FALSE it is known as posting

true or false Purchase invoices received from suppliers provide information about cash payments.

FALSE purchase invoices received from supplies inform about PURCHASE OF GOODS OR SERVICES

expense accounts would most likely be listed ________ on the chart of accounts

LAST

true or false No entries are made in the Posting Reference column in a two-column journal when journalizing

TRUE

true or false no entries are made in the posting references at the time of journalizing

TRUE

true or false source documents serve as historical evidence of business transactions

TRUE

true or false when an incorrect entry has been journalized AND posted to the wrong account a correcting entry should be made

TRUE

true or false when entering the credit item in the general journal it should be listed after all debits and indented

TRUE

a journal is the first formal accounting records for a transaction and as such it is referred to as

a book of original entry

general ledger

a complete set of all the accounts used by a business. the general ledger accumulates a complete record of the debits and credits made to each account as a result of entries made in the journal

if an incorrect entry has been journalized AND posted to the wrong account, _______________

a correcting entry must be made

journal

a day by day listing of the transactions of a business

compound entry

a general journal entry that affects more than two accounts

what is not a source document?

a journal entry

two-column general journal

a journal with only two amount columns - one for debit and one for credit amounts

chart of accounts

a list of all accounts used by a business

trial balance

a list used to prove that the totals of the debit and credit balances in the ledger accounts are equal

ruling method

a method of correcting an entry in which a line is drawn through the error and the correct information is placed above it

what includes, the date of the transaction , the title of each account debited and credited, as well as the amounts and a brief description?

a proper journal entry

to purchase an asset such as office equipment on account you would CREDIT

accounts payable

when fees are earner and the customer promises to pay later which account is debited ?

accounts receivable

in the general ledger the description is left blank except for the following 4 words

adjusting correcting closing reversing

general ledger account

an account with columns for the debit or credit transaction and columns for the debit or credit running balance

correcting entry

an entry to correct an incorrect entry that has been journalized and posted to the wrong account

slide error

an error that occurs when a debit or credit amounts "slide" a digit or two the left or right

transposition error

an error that occurs when two digits are reversed

when correcting errors in a trial balance, the ruling method should be used when??

an incorrect entry has been made but NOT posted AND when a proper entry has been made but posted to the wrong account or for the wrong account

source document

any document that provides information about a business transaction "objective verifiable evidence that a transaction has occured"

check stubs or copies of checks

cash payments

receipt stubs, copies of receipts cash register tapes or memos of cash register totals

cash receipts

a list of all accounts used by a business is called

chart of accounts

the purpose of _____________ is to list and classify all the accounts used by a business

chart of accounts

cash payments

checkstubs or copies of checks

sales of goods or services

copies of sales tickets or invoices issued to customers or clients

posting

copying the debits and credits from the journal to the ledger accounts

a slide error or transportation error has been made if the difference in the totals debits and total debits on the trial balance is

divisible by 9

Once you are complete posting to the general ledger from the general journal THEN you may

enter the account number to each transaction is posted in the posting reference column

which step is NOT required to journalize a business transaction in a general journal?

entering a closing balance

journalizing

entering the transaction in the journal. the second step in the flow of data from source documents to the trial balance

the primary advantage of a ___________ account is that it maintains a running balance

general ledger

in what order are the accounts customarily placed in the ledger?

in the same order as the chart of accounts

the book of original entry is another name for the_________

journal

where is the first FORMAL accounting record of a business transaction usually made?

journal

as an amount is posted to the proper account in the ledger, the appropriate account number is entered is the _____________ column of the journal

posting reference

cash recepits

receipt stubs copies of receipts cash register totals

the _________________________ of correcting an error is to draw a line through the incorrect title or amount and write the correct information directly above the line. The correction is then initialed so the source and reason for the correction can be traced.

ruling method

copies of sales invoices issues to customers or clients are evidence of?

sales of goods and services

copies of sales tickers or sales invoices issued to the customers or clients

sales of goods or services

a debit or 250 was entered as 25, this is a ___________

slide error

sales tickets check stubs and purchase invoices are all examples of

source documents

if an item was posted to the wrong account, the ledger will ___________

still be balance

posting reference on the general journal account number for account debited / credited to indicate_______

the debit/ credit has been posted

a month entry on the general journal is needed for ??

the first transaction on the page

the trial balance is prepared buy using information from

the general ledger

which of the following accumulates a complete record of debits and credits made to each account as a result of the posting process

the general ledger

book of original entry

the journal or the first formal accounting record of a transaction

when a credit of 720 is entered as 270 it is a

transposition error

when the correct numbers are used but in the wrong order the error is called a ?

transposition error


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