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46 Cards in this Set

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what do journals do

keep all entries together

journals are usually

recorded before ledgers

define journal

a book where accounting entries for all transactions are first recorded before recording in ledger accounts

define compound entry

affects more than two accounts

account titles

capitalized

define journal entry

made up of all accounting changes for one transaction


written in general journal beforehand

complete journal entry has

balanced credit/debit

define journalizing

process of recording accounting entries in a journal

journal is known as

book of original entry because each balanced entry is recorded first

what are the three steps in the accounting cycle

transactions occur


recorded in journal in order by date


accounting entries transferred to ledger accounts

explanation contains source document reference number so

it will make each entry unique

purpose of general journal is to provide a

continuous record of the accounting entries in which they occur

accounting clerks works out the accounting entries from......... what does it result in

source documents, and then records in journal


can see everything balances and everything is in order therefore reduced errors

chronological order

helps accounting clerk locate/verify details of transaction quickly when needed

define opening entry

journal entry that starts the books off


end with opening financial position of __________

define source document

- shows nature of a transaction and provides all information to account for it properly



source documents are used for

basis for recording accounting entries


required to be kept on file


reference purposes, locating errors


provide factual evidence to verify transactions of the business

cash sales slip

business form of showing the details of a transaction that goods or services are sold for cash

cash sales slip are serially prenumbered

for reference, no slip lost, no false ones are made out

sale invoice

business form of showing the details of a transaction in which goods/services are sold on account

define vendor

party that sells

define point of sale terminal

computerized sales register that allows a business and its customers to exchange funds electronically

accounting clerk can use the POS terminal to

print at least two source documents



the two source documents are

host reconciliation/card summary


report called transaction log

revel sales of

3 cards: visa, mc, debit

the total shown on the POS summary will be

compared to the bank statement

bank statements are

prepared monthly by he business's financial institution

define transaction log

document generated by point of sale terminal, contains detailed information about each transaction

transaction log includes

customer name and card number


used for reference


useful when customer is in disput with a transaction

define purchase invoice

business form of representing a purchase of goods/services on account

purchase invoice always

credit a/p


debit depends on whats purchased

define cheque copy

document supporting the accounting entry for payment by cheque

cheques can be used for

cash purchases


wages


owners withdrawal


payment on acc

for a cash purchase,

cheque copy is not enough proof
bill/receipt is also needed

when a owner withdrawls from a business,

copy of cashed cheque signed by owner is proper payment

cheque copy always

debit - depends on nature of transaction


credit - ALWAYS BANK

define cash receipt daily summary

business paper that lists the money coming in from customers

cash receipt daily summary is source document for

the accounting entries for cash receipt

define remittances

dollar amounts sent

to prepare cash receipt daily summary

clerks uses information form the tear-off portion of cheques

cash receipt daily summary always

debit bank
credit a/p

when are bank advices used

times when bank intiates change in bank account of business
bank informs the business about transactino by bank advice/bank memo

define bank debit adive

document informing the business of a decrease made in their bank account

bank credit advice

document informing the business of a increase made in their account

idk if its rigiht: cash receipt ==

debit bank
credit a/r
= i received the money!!!!!

idk if its right: cheque copy means

YOU the business pay
debit expense