Glencoe Accounting: Chapter 6

What is the purpose of a source document

• balance the transactions
• have a brief written statement
• evidence of a transaction
• name the account debited

What is the fourth step to analyzing a business transaction

• identify account affected
• classify account affected 
• +/- amount in account
• amount of account debited

What is the source document that lists quantity, description, and unit price of items sold.

• Invoice
• receipt
• memorandum
• check stub

Why is it important for businesses to keep accurate financial records?

• To keep the accounting equation in balance
• if they need to be audited, it is easier
• evidence of a transaction
• accounting period of 12 months

What is a fiscal year

• four months 
• five months
• 24 months
• 12 months

Journalizing an entry records the information of a transaction

• True 
• False

Calendar year and fiscal year always have the same start and ending date

• True 
• False

A check is written on April 15. It is being recorded today, April 17. The date used for recording the transaction is April 17. 

• True
• False

What is the first step in the accounting cycle?

• Record the debit and credit parts of each business tranasction
• prepare a trial balance
• prepare a post closing trial balance
• Collect source documents and verify the financial information. 

Each transaction affects at least________Accounts. 

• One
• Seven
• Three
• Two