Accounting CH.6 quiz review

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Accounting CH.6 quiz review
2012-01-31 18:16:43
Accounting quiz review

Accounting CH.6 review sfwe
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  1. Accounting cycle
    when the accounting period of a business is separated into activities
  2. Source document
    When a business transaction occurs, a paper is prepared as evidence of that transaction.
  3. Invoice
    • lists specific information about a business transaction
    • involving the buying or selling of an item on account. Contains the date of the transaction, the quantity, description, and cost of each item, and the payment terms.
  4. Receipt
    a record of cash received by a business, It indicates the date the payment was received the name of the person or business from whom the payment was received, and the amount of payment.
  5. Memorandum
    is a brief written message that describes a transaction that takes place within a business. Often used if no other source exists for the business transaction
  6. Check stub
    lists the same information that appears on check, the date written, the person or business to whom the check was written and the amount of the check. also shows the balance in the checking account before and after each check is written.
  7. Journal
    • the record of the transactions of a business, it is put into
    • chronological order.
  8. Journalizing
    the process of recording business transactions.
  9. Calendar year
    • accounting period that begins in January 1 and ends on
    • December 31
  10. Fiscal year
    an accounting period of 12 months
  11. General journal
    an all-purpose journal in which all of the transactions of a business may be recorded
  12. Step 1
    collect and verify source documents
  13. Step 2
    analyze transactions
  14. Step 3
    Journalize transactions