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Definition
| form for recording transactions in chronological order |
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| recording transactions in a journal |
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| information for each transaction recorded in a journal |
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| a journal with 2 amount columns in which all kinds of entries can be recorded |
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| the recording of debit and credit parts of a transaction |
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| a business paper from which information is obtained for a journal entry |
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| check, sales invoice, receipt, memo, tape |
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| an invoice used as a source document for recording a sale on account |
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| Concept: Objective Evidence |
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| a document is prepared for each transaction (used for proof) |
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| business form ordering a bank to pay cash from a bank account |
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| form describing good or services sold, the quantity, and the price |
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| business form giving written acknowledgement for cash received |
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| business paper from which information is obtained for a journal entry |
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Transactions are recorded in a journal in one place and in order by date. |
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T/F
For each transaction in a journal, both debit and credit parts are recorded. |
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T/F
Examples of source documents include checks, sales invoices, memos, and letters. |
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T/F
The source document for cash payments is a sales invoice. |
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T/F
The objective evidence accounting concept requires that there be proof that a transaction did occur. |
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T/F
A calculator tape is the source document for daily sales. |
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T/F
A check is an example of a source document when items are paid in cash. |
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T/F
The year is written only once on a journal page. |
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T/F
The month is written once for each transaction on a journal page. |
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T/F
Journal entries have 3 parts: date, debit part, and credit part. |
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T/F
The source document used when supplies are bought on account is a memorandum. |
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T/F
The source document used when supplies bought on account are paid for is a check. |
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The abbreviation for the source document calculator tape is CT. |
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T/F
The abbreviation for the source document sales invoice is SI. |
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T/F
The source document used when cash is received from slaes is a calculator tape. |
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T/F
Decreases in the owner's capital account are recorded as credits. |
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T/F
A general journal page is complete when there is insufficient space to record any more entries. |
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T/F
Each journal entry requires at least two lines. |
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T/F
In correcting an error in accounting work, simply draw a line throught the incorrect item and write the correct item above the canceled item. |
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| Preparing a source document for each transaction is an application of the accounting concept.... |
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| A general journal entry includes ...... |
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| the date, debit, credit, and source document. |
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| The entry to record receipt of cash from the owner as an investment is ..... |
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Definition
| debit Cash, credit Capital. |
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| The account debited when cash is paid for supplies is....... |
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| When cash is paid for insurance, what happens to prepaid insurance? |
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Definition
| the balance of the prepaid insurance account is increased |
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| When supplies are bought on account, the account debited is... |
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| The source document for a payment of cash for the electric bill is ..... |
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| If there is only one blank line remaining on a journal page, what will you do? |
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| If an error is discovered in a general journal entry, how will it be handled? |
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| draw a line through it, correct the entry above the mistake, do not erase, add initials. |
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T/F
The source document number is a cross reference from the journal to the source document. |
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T/F
The kind of journal a business uses depends on the type of industry the business is in. |
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T/F
A transaction recorded in a journal is a permanent record. |
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T/F
The title of the account debited in a general journal entry is indented. |
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T/F
Each general journal entry requires at least 2 lines. |
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T/F
Businesses usually wait until the end of the week to journalize the week's transactions. |
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T/F
Errors in general journal entries should be erased and corrected as soon as they are discovered. |
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