Funeral Service Management 165 Chapter 4
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
