Fundamental Concepts of Accounting and Source Documents

University:
California State University, Northridge
Course:
FIN 302 | Personal Finance
Academic year:

2023
Views:

349

Pages:

1
Author:

gewoekerdodx

Accounting- Eval. #3 Question A form for recording transactions in chronological order. Recording transactions in a journal. Information for each transaction recorded in a journal. A journal with two amount columns in which all kinds of entries can be recorded. The recording of debit and credit parts of a transaction. A business paper from which information is obtained for a journal entry. Abusiness paper from ordering a bank to pay cash from a bank account. A form describing the goods or services sold, the quantity, and the price. An invoice ised as a source document for recording a sale on account. A business form giving written ackowledgement for cash recived. A form on which a brief message is written describing a transaction. Information in a journal includes the debit and credit parts of each transaction recorded in one place. The Objective Evidence accounting concept requires that there be proof that a transaction did occur. Examples of source documents include checks, sales invoices, memorandums, and letters. A check is a sorce document used when items are paid in cash. Check and sales invoices are prenumbered in sequence to help account for them. A receipt is the source document for cash received from transactions other than sales. A calculator tape if the source documebt for daily slaes. The accounts affected when cash is received from the owner as an investment are Cash and the Capital Account. When cash is paid for supplies, the Cash account is credited. When cash is used to pay for insurance, the asset account Prepaid Insurance decreases. The source document used when supplies are ordered by telephone on account is a memorandum. The source document used when supplies bought on account are paid for is a check. When cash is received from sales, both the Cash account and the Sales account are increased. The source document Sales Invoice No. 1 is abbreviated as S1 in a journal entry. When services are sold on account, an asset account and a revenue account are affected. The accounts affected when paying cash for rent are Rent Expense and Cash. When cash is received on account, one asset account increases and another asset account decreases. The accounts affected when paying cash to the owner for personal used are the drawing account and Cash. If there is only one blank line remaining on a journal page, it is standard practice to split the netry and record the second lime of the entry on the next page. To correc an error in a journal , simply erase the incorrect item and write the correct item in the same place. Dollars and cens signs and decimal points should be used when writing amounts on ruled accounting pages. Answer Journal. Journalizing. Entry. General Journal. Double-Entry Accounting. Source Document. Check. Invoice. Sales Invoice. Receipt. Memorandum. True. True. False. True. True. True. True. True. True. False. True. True. True. True. True. True. True. True. False. False. False.