Accounting Terms Definitions Quiz

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?

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

What is a journal?

A form for recording transactions in chronological order Signup and view all the answers

What does journalizing mean?

Recording transactions in a journal Signup and view all the answers

What is a memorandum?

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

What is a receipt?

A business form giving written acknowledgment for cash received Signup and view all the answers

What is a sales invoice?

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

What is a source document?

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

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.

Description

Test your knowledge of essential accounting terms with this quiz. From checks to invoices, understand what each term means and how it applies to financial practices. Perfect for accounting students or anyone looking to refresh their terminology skills.