ACCOUNTING

Chapter 3, 4

check

A business form ordering a bank to pay cash from a bank account.


double-entry accounting

The recording of debit and credit parts of a transaction.


entry

Information for each transaction recorded in a journal.


invoice

A form describing the goods or services sold, the quantity, and the price.


general journal

A journal with two amount columns in which all kinds of entries can be recorded.


journal

A form for recording transactions in chronological order.


journalizing

Recording transactions in a journal.


memorandum

A form on which a brief message is written describing a transaction.


receipt

A business form giving written acknowledgment for cash received.


sales invoice

An invoice used as a source document for recording a sale on account.


source document

A business paper from which information is obtained for a journal entry.


A group of accounts

ledger


A ledger that contains all accounts needed to prepare financial statements

general ledger


the number assigned to an account

account number


the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current

file maintenance


writing an account title and number on the heading of an account

opening an account


transferring information from a journal entry to a ledger account

posting


a journal entry made to correct an error in a previous journal entry

correcting entry


True or False:
Because an account form has columns for the debit and credit balance of an account, it is often referred to as the balance-ruled account form

True


True or False:
The asset division accounts for TechKnow Consulting are numbered in the 100s

true


True or False:
The cash account is the first assset account and is numbered 100

false


True or False:
The second division of TeckKnow Consulting’s chart of accounts is the owner’s equity division

false


True or False:
The first digit of account numbers for accounts in the owner’s equity ledger division is 3.

true


True or False:
The last two digits in a 3-digit account number indicate the general ledger division of the account

false


True or False:
when adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515

true


True or False:
TeckKnow Consulting arranges expense accounts in chronological order in its general ledger

false


True or False:
The twosteps for opening an account are writing the account title and recording the balance

false


True or False:
Seperate amounts in special amount columns are posted individually

false


True or False:
Seperate amounts in general amount columns are posted indivudually

false


True or False:
The only reason for the Post. Ref. columns of the journal and general ledger is to indicate which entries in the journal still need tobe posted fi posting is interrupted

false


True or false:
A check mark in parentheses below a general debit column total indicates that the total is not posted

true


True or False:
The totals of special amount columns in a journal are not posted

false


True or False:
With the exception fo the toals lines , the Post. Ref. column is completely filled in with either an account number or a check mark

true