| A | B |
|---|
| A(n) _______ is an accounting period of 12 months ending on the last day of any month except December. | Fiscal year |
| A(n) _______ is often called a book of original entry. | Journal or general journal |
| The _______ is an all-purpose journal used for recording business transaction. | Journal or General Journal |
| The various activities a business completes to organize its accounting records in an orderly fashion is called the _______. | Cycle |
| A(n) _______ is any type of business paper that verifies that a transaction occurred. | Source Document |
| Another term used “recording” a business transaction is _______. | Journalizing |
| A(n) _______ accounting period begins on January 1 and ends on December 31. | Calendar Year |
| A fiscal period may be one month, three months, six months, or even one year, but usually it is one year. | False |
| An accounting period that begins on July 1 and ends on June 30 is a calendar-year accounting period. | False |
| To record transactions in chronological order means to record them according to the date on which they occurred. | True |
| A journal is like a diary of a business because it is the only place where complete details of a transaction are recorded. | True |
| For every transaction recorded in the general journal, these items are always written: date, account names, amounts, and source document or brief description. | True |
| If an error is discovered immediately after journalizing, a single ruling should be placed through the incorrect data and the correct information should be written above it. | True |
| Recording transactions is the second step in the accounting cycle. | False |
| To verify a source document means to check the accuracy of the information on it. | True |
| Since the debit and credit amounts in a business transaction are the same, the order in which the account titles are recorded in the general journal does not matter. | False |
| Dollar signs, commas and decimals are not used when entering amounts in the journal. | True |
| The title of the account to be credited is indented from the left edge of the Description column so it can be easily distinguished from the debit part of transaction. | True |
| Never erase an error in a journal entry because an erasure looks suspicious. | True |
| In order to help an owner/manager know the financial condition of a business, accounting records are kept and reported for a certain period of time called an accounting period. | True |
| The type of source document prepared depends upon the nature the transaction. | True |
| Purchased $500 worth of chemicals on account from Campbell Chemical Co. | Invoice |
| Received cash from a customer on account, $120 | Receipt |
| Purchased a new generator for use in the business, paying $550 cash. | Check Stub |
| Paid the current month’s electric bill of $95. | Check Stub |
| Billed customers for pool services performed during the past week, $2,300. | Invoice |
| Invested a used truck in the business; the truck is valued at $3,000. | Memo |
| Made a $250 payment on account to Campbell Chemical Co. | Check |
