Accounting Terms Definitions Quiz

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Questions and Answers

What is a check?

  • A record of goods received
  • A summary of monthly transactions
  • A business form ordering a bank to pay cash from a bank account (correct)
  • A form for recording inventory

What is double-entry accounting?

The recording of debit and credit parts of a transaction

What does 'entry' refer to in accounting?

Information for each transaction recorded in a journal

What is an invoice?

<p>A form describing the goods or services sold, the quantity, the price, and the terms of sale</p> Signup and view all the answers

What is a journal?

<p>A form for recording transactions in chronological order</p> Signup and view all the answers

What does journalizing mean?

<p>Recording transactions in a journal</p> Signup and view all the answers

What is a memorandum?

<p>A form on which a brief message is written to describe a transaction</p> Signup and view all the answers

What is a receipt?

<p>A business form giving written acknowledgment for cash received</p> Signup and view all the answers

What is a sales invoice?

<p>An invoice used as a source document for recording a sale on account</p> Signup and view all the answers

What is a source document?

<p>A business paper from which information is obtained for a journal entry</p> Signup and view all the answers

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Study Notes

Accounting Terms Definitions

  • Check: A document issued by a business instructing a bank to release cash from its account.
  • Double-Entry Accounting: A systematic method of recording transactions where each entry involves both a debit and a credit, ensuring the accounting equation remains balanced.
  • Entry: Refers to the specific details of a transaction that are documented in a journal.
  • Invoice: A detailed document that outlines the goods or services provided, including their quantities, prices, and conditions of sale.
  • Journal: A record-keeping tool used to log transactions in the order they occur, facilitating organized financial tracking.
  • Journalizing: The process of entering transactions into a journal, maintaining accurate records of financial activities.
  • Memorandum: A brief written message used to describe the details of a transaction for record-keeping purposes.
  • Receipt: A formal acknowledgment issued by a business confirming the receipt of cash from a transaction.
  • Sales Invoice: A type of invoice that serves as a source document for entering a sale into the accounting system, particularly when sales are made on credit.
  • Source Document: Any business paper that provides essential information for recording a transaction in a journal, serving as evidence for accounting entries.

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