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Questions and Answers
What is a Check?
What is a Check?
What is double-entry accounting?
What is double-entry accounting?
The recording of debit and credit parts of a transaction.
What is an entry in accounting?
What is an entry in accounting?
Information for each transaction recorded in a journal.
What is a general amount column?
What is a general amount column?
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What is an invoice?
What is an invoice?
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What is a journal?
What is a journal?
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What does journalizing mean?
What does journalizing mean?
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What is a memorandum?
What is a memorandum?
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What does proving cash mean?
What does proving cash mean?
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What is a receipt?
What is a receipt?
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What is a sales invoice?
What is a sales invoice?
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What is a source document?
What is a source document?
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What is a special amount column?
What is a special amount column?
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Information in a journal includes the debit and credit parts of each transaction recorded in one place.
Information in a journal includes the debit and credit parts of each transaction recorded in one place.
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The objective evidence accounting concept requires that there be proof that a transaction did occur.
The objective evidence accounting concept requires that there be proof that a transaction did occur.
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Examples of source documents include checks, sales invoices, memorandum, and letters.
Examples of source documents include checks, sales invoices, memorandum, and letters.
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A check is the source document used when items are paid in cash.
A check is the source document used when items are paid in cash.
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The source document for all cash payments is a sales invoice.
The source document for all cash payments is a sales invoice.
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A receipt is the source document for cash received from transactions other than sales.
A receipt is the source document for cash received from transactions other than sales.
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A calculator tape is the source document for daily sales.
A calculator tape is the source document for daily sales.
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The source document used when supplies are bought on account is a memorandum.
The source document used when supplies are bought on account is a memorandum.
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The source document used when supplies bought on account are paid for is a check.
The source document used when supplies bought on account are paid for is a check.
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The journal columns used to record receiving cash from sales are cash debit and sales credit.
The journal columns used to record receiving cash from sales are cash debit and sales credit.
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The source document sales invoice is abbreviated as SI in a journal entry.
The source document sales invoice is abbreviated as SI in a journal entry.
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The journal columns used to record paying cash for rent are general debit and cash credit.
The journal columns used to record paying cash for rent are general debit and cash credit.
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The journal columns used to record paying cash to the owner for personal use are general debit and cash credit.
The journal columns used to record paying cash to the owner for personal use are general debit and cash credit.
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To prove a journal page, the total debit amounts are compared with the total credit amounts to be sure they are equal.
To prove a journal page, the total debit amounts are compared with the total credit amounts to be sure they are equal.
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Double lines across column totals mean that the totals have been verified as correct.
Double lines across column totals mean that the totals have been verified as correct.
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To correct an error in a journal, simply erase the incorrect item and write the correct item in the same place.
To correct an error in a journal, simply erase the incorrect item and write the correct item in the same place.
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Dollars and cents signs and decimal points should be used when writing amounts on ruled accounting pages.
Dollars and cents signs and decimal points should be used when writing amounts on ruled accounting pages.
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Study Notes
Essential Accounting Terms
- Check: A document that instructs a bank to pay cash from a specific account.
- Double-entry accounting: An accounting approach where each transaction includes both debit and credit recorded parts.
- Entry: Detailed information of a transaction that's systematically logged in a journal.
- General amount column: A column in a journal not designated with an account title.
Transaction Documentation
- Invoice: A form that details the sold goods or services, including their quantities and prices.
- Journal: A chronological record of transactions.
- Journalizing: The process of documenting transactions in a journal.
- Memorandum: A brief written document that outlines a transaction.
Cash Management
- Proving cash: The process of verifying that actual cash matches the recorded figures in accounting documents.
- Receipt: A business document that acknowledges cash received for a transaction.
Source Documents
- Sales invoice: A document that serves as a source for recording sales made on credit.
- Source document: Any original business paper used to gather information for a journal entry.
Journal Structure
- Special amount column: A journal column that has a specific account title.
Accounting Concepts
- Objective evidence concept: Mandates the existence of verifiable proof of transactions.
- Verification of journal pages: Involves comparing total debits and credits to ensure they match; indicated by double lines across totals.
Corrections and Notations
- Error correction in journal: The action of erasing an incorrect entry and replacing it with the correct information is not the accepted practice.
- Use of symbols in accounting: Standard practice requires avoiding dollar signs and decimal points when writing amounts on ruled accounting pages.
Source Document Examples
- Cash payment documentation: A check serves as a source document for cash payments.
- Payments for supplies: A memorandum is used when supplies are bought on account; a check is used for payment of such purchases.
- Daily sales tracking: A calculator tape functions as a source document for recording daily sales activity.
Journal Entry Truths
- Correct comparison of debits and credits: Validates that total debit entries equal total credit entries.
- Sales invoice abbreviation: The common abbreviation for sales invoice in journal entries is not "SI".
Transaction Types
- Cash sales: Recorded in the journal as cash debits and sales credits.
- Rent payment entries: Logged as general debits and cash credits in the accounting journal.
- Owner withdrawals: Documented in the journal with general debits and cash credits reflecting personal withdrawals.
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Description
Study essential terms and concepts from Chapter 3 of Accounting. This quiz covers important definitions such as 'check', 'double-entry accounting', and 'journal entries'. Perfect for reinforcing your knowledge before exams.
