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Chapter 6

Key Terms

TermDefinition
accounting cycle activities performed in an accounting period that help the business keep its records in an orderly fashion
calendar year January 1 to December 31
check stub lists info from check; date written, entity written to, amount of check, balance before and after check was written
fiscal year an accounting period of twelve months
general journal all-purpose journal useable for all types of transaction
invoice lists specific information about a business transaction involving the buying or selling of an item on account; contains the date of transaction, quantity, description, cost of each item, payment terms
journal record of transactions of a business; kept in chronological order
journalizing process of recording transactions in a journal
memorandum brief written message describing a transaction that takes place within a business; used usu. in lack of source document
receipt record of cash received by a business; indicates date payment received, name of payment sender, and amount of payment
source document evidence of a business transaction
Created by: talenswan1