Unit 6 Test

A what year may or may not be the same as a calendar year?

Fiscal

The what journal is an all-purpose journal used to record all the transactions of a business?

General

An all-purpose journal in which all transactions of a business may be recorded is the what?

General Journal

A form listing specific information about a business transaction that involves the buying and selling of foods is a what?

Invoice

What 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?

Invoice

What is a calendar year accounting period?

Jan.1-Dec.31

A chronological record of business transactions is a what?

Journal

The process of recording business transactions in a journal is called what?

Journalizing

The process of recording business transactions is called what?

Journalizing

A brief message written to describe a transaction that takes place within a business is a what?

Memorandum

Which source document is used within the business?

Memorandum

The business document prepared when cash is received is a what?

Receipt

A business paper that verifies that a transaction actually occurred is a what?

Source Document

The first step in the accounting cycle is to collect and verify what?

Source Documents

True or False? A journal is sometimes called a "book" of original entry because it is where transactions are first entered in the accounting system.

True

True or False? A source document is a business paper that proves a transaction occurred.

True

True or False? If an error is discovered before posting occurs, simply draw a line through the incorrect item and write the correct item above it.

True

True or False? The accounting cycle is a series of activities a business completes over a period of time.

True

True or False? The analysis of a business transaction into its debit and credit parts is required for both manual and computerized accounting systems.

True

True or False? The different kinds of source documents a business uses depends on the nature of the transaction.

True

Most businesses use an accounting period of what?

Twelve months

Each transaction affects at least how many accounts?

Two

What is the accounting cycle in order?

1. Collect source documents and verify the financial information. 2. Analyze business transactions into their debit and credit parts. 3. Record the debit and 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 worksheet to summarize the financial information for the accounting period. 7. Prepare the financial statements. 8. Record and post the closing entries. 9. Prepare a post-closing trial balance.

A sequence of business activities completed throughout a fiscal period to keep accounting record in an orderly fashion is the what?

Accounting Cycle

Activities completed during an accounting period are called the what?

Accounting Cycle

The source document for recording a cash payment transaction is a what?

Check Stub

Example of source documents are invoices, receipts, memorandums, and what?

Check Stubs

Business transactions are recorded in what order?

Chronological

What is entered with every transaction?

Date, Debit account name and amount, Credit account name and amount, and Source document or explanation

Errors in a general journal entry are corrected by doing what to incorrect information and entering correct data?

Drawing a line through

A source document is what that a transaction has occurred?

Evidence

True or False? A check was written on April 15. It is being recorded today, April 17. The date used for recording the transaction is April 17.

False

True or False? A fiscal year is an accounting period that always begins on the January 1 and ends on December 31.

False

True or False? The debit part of a business transaction should be indented one-half inch from the left edge of the paper.

False

True or False? When recording a business transaction, the amount is always entered first because it is the most important part of the journal entry.

False