Accounting Chapter 3

Information for each transaction recorded in a journal.

A form describing the goods or services sold, the quantitiy, the price, and the terms of sale.

Transactions are recorded in a journal in chronological order.

In double-entry accounting, each transaction affects at least two accounts.

The Objective Evidence concept requires proof that a transaction did occur.

A business paper from which information is obtained for a journal entry.

The recording of debit and credit parts of a transaction.

A form on which a brief message is written to describe a transaction.

To correct an error in a journal, one can simply erase the incorrect item and write the correct item.

When an entry in an amount column is an even dollar amount, either "00" or "--" can be entered in the cents column.

The source document for all cash payments is a check.

A business form giving written acknowledgement for cash received.

The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.

An invoice used as a source document for recording a sale on account.

A business form ordering a bank to pay cash from a bank account.

A receipt is the source document for cash received from transactions other than sales.

A complete journal entry consists of the date, the debit amount, the credit amount, and a source document.

A calculator tape is the source document for daily cash sales.

A general journal page is complete when there is insufficient space to record any more entries.

A transaction recorded in a journal is not considered a permanent record.

Recording transactions in a journal.

Every business uses the same journal to record transactions.

A form for recording transactions in chronological order.

The source document used when supplies are bought on account is a memorandum.