Chapter 6 Vocab

Question 1

Accounting Cycle

Answer 1

activities performed in an accounting period that help the business keep its records in an orderly fashion

Question 2

Source Document

Answer 2

a paper prepared as the evidence that a transaction occurred

Question 3

Invoice

Answer 3

a source document that lists the quantity, description, unit price, and total cost of the items sold and shipped to a buyer

Question 4

Receipt

Answer 4

a source document that serves as a record of cash received

Question 5

Memorandum

Answer 5

a brief written message that describes a transaction that takes place within a business

Question 6

Check Stub

Answer 6

a source document that lists the same information that appears on a check and shows the balance in the checking account before and after each check is written

Question 7

Journal

Answer 7

a chronological record of the transactions of a business

Question 8

Journalizing

Answer 8

the process of recording business transactions

Question 9

Fiscal Year

Answer 9

an accounting period period of twelve months

Question 10

Calendar Year

Answer 10

an accounting period that begins on January 1 and ends on December 31

Question 11

General Journal

Answer 11

Permanent records to record business transactions

Question 12

What are the six steps for recording a business transaction in the general journal

Answer 12

1. Date
2. Name of account to be debited
3. Amount to be debited
4. Name of account to be credited
5. Amount to be credited
6. Source Document Reference