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46 Cards in this Set
- Front
- Back
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what do journals do |
keep all entries together |
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journals are usually |
recorded before ledgers |
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define journal |
a book where accounting entries for all transactions are first recorded before recording in ledger accounts |
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define compound entry |
affects more than two accounts |
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account titles |
capitalized |
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define journal entry |
made up of all accounting changes for one transaction written in general journal beforehand |
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complete journal entry has |
balanced credit/debit |
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define journalizing |
process of recording accounting entries in a journal |
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journal is known as |
book of original entry because each balanced entry is recorded first |
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what are the three steps in the accounting cycle |
transactions occur recorded in journal in order by date accounting entries transferred to ledger accounts |
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explanation contains source document reference number so |
it will make each entry unique |
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purpose of general journal is to provide a |
continuous record of the accounting entries in which they occur |
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accounting clerks works out the accounting entries from......... what does it result in |
source documents, and then records in journal can see everything balances and everything is in order therefore reduced errors |
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chronological order |
helps accounting clerk locate/verify details of transaction quickly when needed |
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define opening entry |
journal entry that starts the books off end with opening financial position of __________ |
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define source document |
- shows nature of a transaction and provides all information to account for it properly |
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source documents are used for |
basis for recording accounting entries required to be kept on file reference purposes, locating errors provide factual evidence to verify transactions of the business |
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cash sales slip |
business form of showing the details of a transaction that goods or services are sold for cash |
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cash sales slip are serially prenumbered |
for reference, no slip lost, no false ones are made out |
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sale invoice |
business form of showing the details of a transaction in which goods/services are sold on account |
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define vendor |
party that sells |
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define point of sale terminal |
computerized sales register that allows a business and its customers to exchange funds electronically |
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accounting clerk can use the POS terminal to |
print at least two source documents |
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the two source documents are |
host reconciliation/card summary report called transaction log |
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revel sales of |
3 cards: visa, mc, debit |
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the total shown on the POS summary will be |
compared to the bank statement |
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bank statements are |
prepared monthly by he business's financial institution |
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define transaction log |
document generated by point of sale terminal, contains detailed information about each transaction |
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transaction log includes |
customer name and card number used for reference useful when customer is in disput with a transaction |
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define purchase invoice |
business form of representing a purchase of goods/services on account |
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purchase invoice always |
credit a/p debit depends on whats purchased |
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define cheque copy |
document supporting the accounting entry for payment by cheque |
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cheques can be used for |
cash purchases wages owners withdrawal payment on acc |
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for a cash purchase, |
cheque copy is not enough proof |
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when a owner withdrawls from a business, |
copy of cashed cheque signed by owner is proper payment |
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cheque copy always |
debit - depends on nature of transaction credit - ALWAYS BANK |
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define cash receipt daily summary |
business paper that lists the money coming in from customers |
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cash receipt daily summary is source document for |
the accounting entries for cash receipt
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define remittances |
dollar amounts sent |
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to prepare cash receipt daily summary |
clerks uses information form the tear-off portion of cheques |
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cash receipt daily summary always |
debit bank
credit a/p |
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when are bank advices used |
times when bank intiates change in bank account of business |
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define bank debit adive |
document informing the business of a decrease made in their bank account |
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bank credit advice |
document informing the business of a increase made in their account |
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idk if its rigiht: cash receipt == |
debit bank
credit a/r = i received the money!!!!! |
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idk if its right: cheque copy means |
YOU the business pay |
