Accounting - Study Guide 4
receipt
a business form giving written acknowledgement for cash received; cash received for transactions other than sales
check
a business form ordering a bank to pay cash from a bank account; cash payment transactions
source document
a business paper from which information is obtained for a journal entry
true
a calculator tape is the source document for daily sales
true
a check is the source document used when items are paid in cash
invoice
a form describing the goods or services sold, the quantity, and the price
journal
a form for recording transactions in chronological order
memorandum
a form on which a brief message is written describing a transaction
special amount column
a journal amount column headed with an account title
general amount column
a journal amount column that is not headed with an account title
debit, credit, date, source document, account title
a journal entry includes (5 things)
true
a receipt is the source document for cash received from transactions other than sales
sales invoice
an invoice used as a source document for recording a sale on account
proving cash
determining that the amount of cash agrees with the accounting records
false
dollars and cents signs and decimals points should be used when writing amounts on ruled accounting pages
true
double lines across column totals mean that the totals have been verified as correct
false (because there are only 5 source documents, and letters is not one of them)
examples of source documents include checks, sales invoices, memorandums, and letters
memorandum (M#)
form that includes a brief message describing a transaction
entry
information for each transaction recorded in a journal
journalizing
recording transactions in a journal
sales invoice (S#)
sale on account transaction
calculator tape (T#, where # is the date)
source document for sales; cash and credit card sales source document
true
the journal columns used to record paying cash for rent are general debit and cash credit
true
the journal columns used to record paying cash to the owner for personal use are general debit and cash credit
true (the check mark transaction)
the journal columns used to record receiving cash from sales are cash debit and sales credit
true
the objective evidence accounting concept requires that there be proof that a transaction did occur
double-entry accounting
the recording of debit and credit parts of a transaction
false
the source document for all cash payments is sales invoice
false
the source document sales invoice is abbreviated as SI in a journal entry
true
the source document used when supplies are bought on account is a memorandum
true (round-about way of saying "bought with cash")
the source document used when supplies bought on account are paid back for is a check
true
to prove a journal page, the total debit amounts are compared with the total credit amounts to be sure they are equal
true
transactions are recorded in a journal in order by date and in one place