4.2 Journalizing Business Transactions

Question 1

Recording business transactions in a journal

Answer 1

Journalizing

Question 2

A chronological record of business transactions/ / Book of primary entry

Answer 2

Journal

Question 3

General-purpose journal for recording all types of entries

Answer 3

General journal

Question 4

Journals used for similar and repetitive transactions

Answer 4

Special Journal

Question 5

For credit sales

Answer 5

Sales Journal

Question 6

For good returned by customers

Answer 6

Sales returns journal

Question 7

For credit purchases

Answer 7

Purchases Journal

Question 8

For goods returned to supplies

Answer 8

Purchases Returns Journal

Question 9

For Cash receipts

Answer 9

Cash receipts journal

Question 10

For cash payments

Answer 10

Cash payments journal

Question 11

For small cash payments

Answer 11

Petty Cash journal

Question 12

A journal entry that contains more than one debit or credit

Answer 12

Simple Entry

Question 13

A journal entry that contains more than one debit or credit

Answer 13

Compound Entry

Question 14

A chain of references that makes it possible to trace information, locate errors, and prevent fraud

Answer 14

Audit trail

Question 15

Occurs when digits are switched

Answer 15

Transposition Error

Question 16

Occurs when a decimal point is misplaced

Answer 16

Transplacement error/ Sliding error