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Chapter 6

TermDefinition
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.
Created by: 333317