1. Chapter 6 – Recording Transactions in a General Journal
Accounting Review
Chapter 6 – Recording Transactions in a General Journal

2. Terms
What is a sequence of business activities completed throughout a fiscal period to keep accounting records in an orderly fashion called?
An accounting cycle

3. Terms What is a calendar year?
An accounting period beginning on January 1st and ending on December 31st

4. Terms What is a fiscal year?
An accounting period of twelve months ending on the last day of any month except December.

5. Terms
Give an example of a business that would operate on a fiscal year.
School districts, department stores

6. Terms
What is any type of business paper that verifies that a transaction occurred called?
Source document

7. Terms What are the four types of source documents?
Check stub, memo, invoice & receipt

8. Terms
What lists the same information that appears on a check? It is the source document for recording a cash payment transaction
Check stub

9. Terms
What is a brief written message that describes a transaction that takes place within a business?
Memo (memorandum)

10. Terms
What source document lists specific information about a business transaction involving the buying or selling of an item. It contains the date of the transaction along with quantity, description and cost.
Invoice

11. Terms
When is a Receipt used
Recording of cash received by a business.

12. Terms Another term used for “recording” a business transaction is __ .
Journalizing

13. Terms An all-purpose journal used for recording business transactions.
General journal

14. Terms
Called a book of original entry
Journal

15. Terms
In order to help an owner know the financial condition of a business, accounting records are kept and reported for a certain period of time called an __.
Accounting period

16. Question
True/False…A fiscal period can be one month, or three months, but usually it is one year.
True

17. Question
When writing in the general journal which account title is recorded first?
Debit

18. Question
When writing in the general journal, which account title is indented and why?
Credited, so it can be distinguished from the debit part of the transaction.

19. Question
Should you use dollar signs, commas and decimals when journalizing? No

20. Question What is chronological order?
Recording information according to the date on which they occurred.

21. Question
True or False - You should always erase a mistake and put in the correct data.
False; how should it be completed?
Draw a single ruled line through the incorrect data and the correct information should be written above it.

22. Question What items are always recorded in the general journal?
Date, both account titles, both amounts and source document or explanation.

23. Question Recording transactions is which step in the accounting cycle?
Third

24. If you know the answers to this review, you will do well on the test, if not – this review will be in Moodle