Century 21 Accounting - Chapter 3
Receipt
A business form giving written acknowledgement for cash received. A source document for cash received from transactions other that sales.
Check
A business form ordering a bank to pay cash from a bank account. A source document that provides proof of a cash payment.
Source document
A business paper from which information is obtained for a journal entry.
Invoice
A form describing the goods or services sold, the quantity, and the price. A bill
Journal
A form for recording transactions in chronological order.
Memorandum
A form on which a brief message is written describing a transaction.
Sales invoice
An invoice used as a source document for recording a sale on account.
A transaction recorded in a journal is not considered a permanent record.
False
Every business uses the same journal to record transactions.
False
The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.
False
The journal columns used to record receiving cash from the owner as an investment are Cash Debit and Sales Credit.
False
To correct an error in a journal one can simply erase the incorrect item and write the correct item.,
False
When an entry in an amount column is an even dollar amount either "00" or "--" can be entered in the cents column.,
False
Entry
Information for each transaction recorded in a journal.
Journalizing
Recording transactions in a journal.
Objective Evidence
The GAAP accounting concept that requires that a source document is prepared as proof that a transaction did occur.
Double-entry accounting
The recording of debit and credit parts of a transaction.
A complete journal entry consists of the date the debit amount, the credit amount, and a source document.,
True
A receipt is the source document for cash received from transactions other than sales.
True
Cash is always proved at the end of a month.
True
Double lines are ruled across a journal's amount columns to indicate that the totals have been verified as correct.
True
In double-entry accounting each transaction affects at least two accounts.
True
The source document for all cash payments is a check.
True
The source document used when supplies are bought on account is a memorandum.
True
Transactions are recorded in a journal in chronological order.
True