Accounting Cycle and Source Documents Flashcards
Who, inside the business, will be interested in the businesses accounting information?
The owner/s
The bookkeepers or accountants
The managers
The employees
What are the first 3 steps in the accounting cycle?
Transaction takes place
Record the information in a source document
Record in the subsidiary journals (CPJ, CRJ)
What are the four parties involved in a cheque
Drawer
Payee
Drawee
Payer
What is a payee?
The person or business to whom the cheque is being paid, ie. to whom the cheque is issued
What is a drawer?
The person/business from whose account the money is being withdrawn.
What is a cheque counterfoil?
The part of the cheque that stays in the cheque book. It serves as the source document to record payement into the books of the business. It is also referred to as the cheque stub.
What is a drawee?
The bank of the cheque holder, ie. the drawer’s bank
For how long is a cheque valid?
3 months
What is a payer?
The bank of the person/business whom the cheque is being paid, ie. the payee’s bank.
Who’s signature is signed at the bottom of a cheque?
The Drawer’s
