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Chapter 6

Accounting

TermDefinition
Accounting Cycle Activities performed in an accounting period that help the business keep its records in an orderly fashion
Calendar Year Accounting period that begins on January 1 and end December 31
Check Stub A source document that lists the same information that appears on a check and shows the balance in the checking account before and after each check is written
Fiscal Year An accounting period of twelve months
General Journal An all-purpose journal in which all the transactions of a business may be recorded
Invoice A source document that lists the quantity, description, unit price, and total cost if the items sold and shipped to a buyer
Journal A chronological record of the transaction of a business
Journalizing The process of recording business transaction in a journal
Memorandum A brief written messages that describes a transaction that takes place within a business
Receipt A source document that serves as a record of cash received
Source Document A paper prepared as evidence that a transaction occurred
Created by: 226818