book of original entry
the journal or the first formal accounting record of a transaction
chart of accounts
a list of all accounts used by a business
compound entry
a general journal entry that affects more than two accounts
general ledger
a complete set of all the accounts used by a business; this accumulates a complete record of the debits and credits made to each account as a result of entries made in the journal
general ledger account
an account with columns for the debit or credit transaction and columns for the debit or credit running balance
journal
a day-by-day listing of the transactions of a business
journalizing
entering the transactions in a journal
posting
copying the debits and credits from the journal to the ledger accounts
source document
any document that provides information about a business transaction
trial balance
a list used to prove that the totals of the debit and credit balances in the ledger accounts are equal
two-column general journal
a journal with only two amount columns, one for debit amounts and one for credit amounts
True
T/F: Source documents serve as historical evidence of business transactions.
False: A, L, OE, R, E
T/F: The chart of accounts lists capital accounts first, followed by liabilities, assets, expenses, and revenue.
True
T/F: No entries are made in the Posting Reference column at the time of journalizing.
True
T/F: When entering the credit item in a general journal, it should be listed after all debits and indented.
True
T/F: When an incorrect entry has been journalized and posted to the wrong account, a correcting entry should be made.
C) Journal entry
Which of the following is not a source document?
A) Check stub
B) Cash register tape
C) Journal entry
D) Purchase invoice
D) 4
A revenue account will begin with the number ______ inthe chart of accounts.
A) 1
B) 2
C) 3
D) 4
C) Accounts Payable
To purchase an asset such as office equipment on accounts, you would credit which account?
A) Cash
B) Accounts Receivable
C) Accounts Payable
D) Capital
B) Accounts Receivable
When fees are earned and the customer promises to pay later, which account is debited?
A) Cash
B) Accounts Receivable
C) Accounts Payable
D) Capital
A) Transposition
When the correct numbers are used but are in the wrong order, the error is called a _____.
A) Transposition
B) Slide
C) Ruling
D) Correcting Entry