Chapter 2: Accounting Information System

Accounting cycle

_____ --> Adjust ---> Report --> Close

• Identify

• Record

• Identify and record

• Source document

The first product of the Accounting Information System is _____.

• Journal

• Ledger

• Source documents

• Financial statements

State the accounting theory that explains why a source document is important.

• Accounting period theory

• Accounting entity theory

• Objectivity theory

• Going concern theory

State the source document used to record the information:

Purchased a computer on credit.

• Invoice

• Debit note

• Credit note

• Receipt

State the source document to record the information:

Paid cheque for goods purchased previously.

• Invoice

• Payment voucher

• Debit note

• Credit note

State the source document used to record the information:

Returned goods to supplier Teo due to incorrect specifications

• Invoice

• Receipt

• Debit note

• Cedit note

State the source document to record the information:

Sold goods and received cheque

• Invoice

• Receipt

• Debit note

• Credit note

State the source document used to record the information.

Inform a credit customer that he had been undercharged

• Invoice

• Receipt

• Debit note

• Credit note

A cash transaction happens when payment is __________ during a cash sale or purchase.

• made immediately

• postponed/delayed

Credit transaction happens when payment is _____________ during a credit sale or purchase.

• made immediately

• postponed/delayed