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Chapter 6

Accounting Cycle The accounting period of a business is separated into activities
Source Document When a business transaction occurs, a paper is prepared as evidence of that transaction.
Invoice Lists specific information about a business transaction involving the buying or selling of an item on account.
Receipt A record of cash received by a business.
Memorandum A brief written message that describes a transaction that takes place within the business.
Check Stub Lists the same information that appears on a check: the date written, the person or business to whom the check was written, and the amount of the check.
Journal A record of the transactions of a business.
Journalizing The process of recording business transactions in a journal.
Fiscal Year An accounting period of 12 months.
Calendar Year The fiscal year beginning on January 1 and ending on December 31
General Journal An all-purpose journal in which all of the transactions of a business may be recorded.
Created by: 535816



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