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Chapter 6
| Term | Definition |
|---|---|
| Accounting Cycle | Accounting period of a business is separated into activities that help the business keep its record in an orderly fashion. |
| Source Document | A paper prepared as evidence that a transaction has occurred. |
| Invoice | A source document that list the quantity , description unit price and the total cost of item sold and shipped to the buyer. |
| Receipt | A source document that serves as a record of cash received. |
| Memorandum | A brief written message that describes a transaction that take place within a business. |
| Check Stub | A source document that that list the same information as a check and show the balance in the checking account before and after each check is written. |
| Journal | Record of transactions of the business. |
| Journalizing | The process of recording business transactions in a journal. |
| Fiscal Year | An accounting period for 12 months. |
| Calendar Year | Begins on January 1st and ends on December 31st. |
| General Journal | All purpose journal in which all the transactions of a business is recorded. |