accounting information system Chapter 2

Question 1

what is cash transaction

Answer 1

cash transaction is payment made immediately during a cash sale or purchase.

Question 2

what is credit transaction

Answer 2

credit transaction is payment delayed or postponed during a credit sale or purchase.

Question 3

what is a source document

Answer 3

a source document provides proof that transactions have occurred.

Question 4

what is a receipt

Answer 4

a receipt acknowledges that received from customer immediately after the business has sold good or provided service.

Question 5

what is an invoice

Answer 5

invoice informs credit customer of the amount they owed after the business sold goods or provided service.

Question 6

what is credit note

Answer 6

a credit note reduces the amount owed by the credit customer.
- previously over charged
- after goods were returned

Question 7

what is debit note

Answer 7

debit note increases the amount owed to the credit customer who were previously undercharged.

Question 8

what is a bank statement

Answer 8

a bank statement checks and tallies against the business records of its cash at bank account.