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Chapter 6 key terms
Question | Answer |
---|---|
Accounting Cycle | The accounting period of a business is separated into activities called the accounting cycle. |
Source Document | When a business transaction occurs, a paper is prepared as evidence of that transaction. |
Invoice | Lists specific info about a business transaction involving the buying or selling of an item on account. The invoice contains the date of the transaction; the quantity, description, and cost of each item; and the payment terms. |
Receipt | A record of cash received by a business. it indecates the date the payment was received, the name of the person or business. A memorandum is often used if no other source document exists for the business transaction. |
Memorandum | A brief written message that describes a transaction that takes place within a business. A memorandum is often used if no other source document exists for the business transaction |
Check stub | The check stub lsits the same info that appears on a check: the date written, the person or buss. to whom the check was written, the amount of the check. The check stub also shows the balance in the checking account before & after each check was wriiten |
Journal | Is a record of the transaction of a business. |
Journalizing | The process of recording business transactions in a journal. |
Fiscal year | An account period of 12 months. |
Calendar year | A business that begins on january 1 and ends on december 31 |