Accounting 1 Chapter 6 Test

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 the transaction.

Never erase an error in a journal entry because an erasure looks suspicious.

A(n) ___________ is any type of business paper that verifies a transaction occurred.

Recording transactions is the second step in the accounting cycle.

What source document would be used to support the following transaction:
Purchased $500 worth of chemicals on account from Campbell Chemical Co.

The type of source document prepared depends upon the nature of the transaction.

Which of the following is entered with each transaction?

To verify a source document means to check the accuracy of the information on it.

Put the following steps in order for recording a journal entry: (Write each number with a space in between ex.--3 1 6 4 2 3

1. Record the amount of the debit
2. Record the amount of the credit
3. Record the name of the account to be credited, indented from the left edge of the Description column.
4. Write a brief reference to the source document.
5. Enter the date of the transaction.
6. Record the title of the account to be debited.

Dollar signs, commas and decimals are not used when entering amounts in the journal.

What source document would be used to support the following transaction: Received cash from a customer on account, $120.

An accounting period that begins on July 1 and ends on June 30 is a calendar-year accounting period.

Most businesses use an accounting period of

A fiscal period may be one month, three months, six months, or even one year, but usually it is one year.

To record transactions in chronological order means to record them according to the date on which they occurred.

What source document would be used to support the following transaction:

A form listing specific information about a business transaction that involves the buying and selling of goods is a(n)

Since the debit and credit amounts in a business transaction are the same, the order in which the account titles are recorded to the general journal does not matter.

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.

A journal is like a diary of a business because events are recorded in chronological order.

For every transaction recorded in the general journal, these items are always written: date, account names, amounts, and source document or brief description.

What source document would be used to support the following transaction: Purchased a new generator for the business paying $550.

Which of the following is a calendar year accounting period?

A(n) ____________ is an accounting period of 12 months ending on the last day of any month except December.

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