Home > Flashcards > Accounting > Chapter 4 Recording Trans/GJ

Details Title: Chapter 4 Recording Trans/GJ Description: Review Total Flash Cards: 48 Created: 09/07/2006 07:10:14	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Journal Definition form for recording transactions in chronological order Term journalizing Definition recording transactions in a journal Term entry Definition information for each transaction recorded in a journal Term General Journal Definition a journal with 2 amount columns in which all kinds of entries can be recorded Term double-entry accounting Definition the recording of debit and credit parts of a transaction Term source document Definition a business paper from which information is obtained for a journal entry Term Name 5 source documents. Definition check, sales invoice, receipt, memo, tape Term sales invoice Definition an invoice used as a source document for recording a sale on account Term Concept: Objective Evidence Definition a document is prepared for each transaction (used for proof) Term check Definition business form ordering a bank to pay cash from a bank account Term Define invoice Definition form describing good or services sold, the quantity, and the price Term Define receipt Definition business form giving written acknowledgement for cash received Term Define source document Definition business paper from which information is obtained for a journal entry Term T/F Transactions are recorded in a journal in one place and in order by date. Definition True Term T/F For each transaction in a journal, both debit and credit parts are recorded. Definition True Term T/F Examples of source documents include checks, sales invoices, memos, and letters. Definition False Term T/F The source document for cash payments is a sales invoice. Definition False Term T/F The objective evidence accounting concept requires that there be proof that a transaction did occur. Definition True Term T/F A calculator tape is the source document for daily sales. Definition True Term T/F A check is an example of a source document when items are paid in cash. Definition True Term T/F The year is written only once on a journal page. Definition True Term T/F The month is written once for each transaction on a journal page. Definition False Term T/F Journal entries have 3 parts: date, debit part, and credit part. Definition False Term T/F The source document used when supplies are bought on account is a memorandum. Definition True Term T/F The source document used when supplies bought on account are paid for is a check. Definition True Term T/F The abbreviation for the source document calculator tape is CT. Definition False Term T/F The abbreviation for the source document sales invoice is SI. Definition False Term T/F The source document used when cash is received from slaes is a calculator tape. Definition True Term T/F Decreases in the owner's capital account are recorded as credits. Definition False Term T/F A general journal page is complete when there is insufficient space to record any more entries. Definition True Term T/F Each journal entry requires at least two lines. Definition True Term 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. Definition True Term Preparing a source document for each transaction is an application of the accounting concept.... Definition Objective Evidence Term A general journal entry includes ...... Definition the date, debit, credit, and source document. Term The entry to record receipt of cash from the owner as an investment is ..... Definition debit Cash, credit Capital. Term The account debited when cash is paid for supplies is....... Definition Supplies. Term When cash is paid for insurance, what happens to prepaid insurance? Definition the balance of the prepaid insurance account is increased Term When supplies are bought on account, the account debited is... Definition Supplies. Term The source document for a payment of cash for the electric bill is ..... Definition a check. Term If there is only one blank line remaining on a journal page, what will you do? Definition start a new page Term If an error is discovered in a general journal entry, how will it be handled? Definition draw a line through it, correct the entry above the mistake, do not erase, add initials. Term T/F The source document number is a cross reference from the journal to the source document. Definition True Term T/F The kind of journal a business uses depends on the type of industry the business is in. Definition False Term T/F A transaction recorded in a journal is a permanent record. Definition True Term T/F The title of the account debited in a general journal entry is indented. Definition False Term T/F Each general journal entry requires at least 2 lines. Definition True Term T/F Businesses usually wait until the end of the week to journalize the week's transactions. Definition False Term T/F Errors in general journal entries should be erased and corrected as soon as they are discovered. Definition False