ACCOUNTING TEST CHAPTER 6

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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


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