ACCOUNTING TEST CHAPTER 6
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, it is recorded as April 15
A form listing specific info about a business transaction that involves the buying and selling of goods is what?
Invoice
Which of the following is a calendar year accounting period?
Jan. 1-Dec. 31
Which source document is used within the business?
Memorandum
The analysis of a business transaction into its debits and credits is required for both manual and computerized accounting system.
True
The different kinds of source documents a business uses depends on the nature of the transaction.
True
Journal
a chronological record of business transactions
Example of source documents are invoices, receipts, memorandums, and __________.
check stubs
A source document is _________ that a transaction has occurred.
evidence
A _______ year may or may not be the same as a calendar year.
fiscal
A(n) ________ is an accounting period of 12 months ending on the last day of any month except December.
fiscal
The ________ journal is an all-purpose journal used to record all the transactions of a business.
general
The ________ is an all-purpose journal used for recording business transactions.
general journal
A(n) _______ is often called a book of original entry.
journal
Another term used for "recording" a business transaction is ___________.
journalizing
Step #9 of The Accounting Cycle
prepare a post-closing trial balance
Step #5 of The Accounting Cycle
prepare a trial balance
Step #6 of The Accounting Cycle
prepare a work sheet to summarize the financial information for the accounting period
Step #7 of The Accounting Cycle
prepare the financial statements
Step #8 of The Accounting Cycle
record and post the closing entries
Step #3 of The Accounting Cycle
record the debit and credit parts of each business transaction in a journal
A(n) _______ is any type of a business paper that verifies that a transaction occurred.
source document
The first step in the accounting cycle is to collect and verify ______________.
source document
Receipt
the business document prepared when cash is received
Journalizing
the process of recording business transactions in a journal
Check Stub
the source document for recording a cash payment transaction
Invoice
the source document that shows the date of a business transaction, item purchased, quantity of each item, and the cost of each item
Each transaction affect at least _____ accounts.
two
A journal is sometimes called a "book" of original entry because it is where transactions are first entered in an accounting system.
True
If an error is discovered before posting occurs, simply draw a line through the incorrect item and write the correct item above it.
True
A(n) ___________ accounting period begins on Jan. 1 and ends on Dec. 31.
calendar year
Step #4 of The Accounting Cycle
post each journal entry to the ledger accounts
A fiscal year is an accounting period that always begins on January 1 and ends on December 31.
False, a calendar year is Jan. 1 to Dec. 31
The debit part of a business transaction should be indented one-half inch from the left edge of the paper.
False, the credit part not the debit
A source document is a business paper that proves a transition has occurred.
True
The accounting cycle is a series of activities a business completes over a period of time.
True
Most businesses use an accounting period of how long?
Twelve months
Step #2 of The Accounting Cycle
analyze business transactions into their debit and credit part
Business transactions are recorded in ___________ order.
chronological
Step #1 of The Accounting Cycle
collect source documents and verify the financial information
The process of recording business transactions is called ___________.
journalizing
General Journal
an all-purpose journal in which all the transactions of a business may be recorded
When recording a business transaction, the amount is always entered first because it is the most important part of the journal entry.
False, it is entered last
Memorandum
a brief written message that describes a transaction that takes place within a business
Activities completed during an accounting period are called the _________.
accounting cycle
The various activities a business completes to organize its accounting records in an orderly fashion is called _________.
accounting cycle
Which of the following is entered with each transaction?
The date, debit account name and amount, credit account name and amount, and source document or explanation
Source Document
a business paper that verifies that a transaction actually occurred
Accounting Cycle
a sequence of business activities completed throughout a fiscal period to keep accounting records in an orderly fashion
Errors in a general journal entry are corrected by _________ incorrect info and entering correct data.
crossing out
