FIN 806 Activity 1

The purpose of the general journal is to classify and clarify the individual transactions listed in all the journals.

• TRUE

• FALSE

Accounts payables are amounts a company owes because it purchased goods or services on credit from a supplier.

• TRUE

• FALSE

Cash transactions occurs when cash is received or paid at a future date.

• TRUE

• FALSE

The procedure of entering details into the ledger is called :

• Journalizing

• Posting

• Reconciling

• Adjusting

Contains all of a detailed sub-set of transactions:

• Subsidiary ledger

• General ledger

• Account Payable

• Account Receivable

Activities and events that affect the financial position of a business, is Business -----------------------------

• Manufacturing

• Management

• Transactions

• Documents

The second step in the accounting cycle is the preparation of:

• Financial Statements

• Journals

• Source documents

• Ledger

Credit transactions result in either account receivable or accounts payable.

• TRUE

• FALSE

Journalizing is the procedure of entering details into the ledger.

• TRUE

• FALSE

The third step in the accounting cycle is :

• Source Documents

• Financial Statements

• Ledger

• Journal