Accounting Cycle

The accounting cycle begins by recording _____________ in the form of journal entries.

• Business transactions

• Financial information

• Corporate minutes

• Business contracts

The accounting cycle begins by recording _____________ in the form of journal entries.

• A. business transaction

• B. financial information

• C. corporate minutes

• D. business contracts

After a business transaction has occurred, journal entries are recorded in the

• ledger

• journal

• expense accounts

Once journal entries are recorded, they can be posted to:

• ledger

• income statement

• expenses account

Transactions that cannot be recorded in a special journal are recorded in a general journal.

• True
• False

Step 2 of the accounting cycle is

• record

• source documents

• report

• advice

Transactions are recorded in a journal in chronological order.

• True

• False

An invoice used as a source document for recording a sale on account.

• source document
• sales invoice
• check
• entry

A form describing the goods or services sold, the quantity, the price, and the terms of sale.

• Source document

• Invoice

• journal

An invoice used as a source document for recording a sale on an account

• Receipt

• Entry

• Sales Invoice