Accounting Ch. 6

True or False?

A fiscal year is an accounting period that always begins on Jan 1 and ends on Dec. 31.

• True

• False

What is the first step in the accounting cycle?

• Collect source documents

• Post to the Ledger

• Prepare a worksheet

• Analyze each transaction

• Ledger

A receipt is used as a source document for what kind of tranaction?

What are four types of source documents?

• Journalize, journal, ledger, T accounts

• Memorandum, ledger, Receipts, Cash

• Memorandum, invoice, check stub, reciept

• Journal, fiscal year, calendar year, Memo

What is another name for the journal?

• Book of Original Entry

• Book of last entry

• Book of Ledgers

• Book of Groveton

True or False? We always use dollar signs and commas in accounting.

• True

• False

True or False? If you make an error on the General Journal, you must erase it and begin again.

• True

• False

If Evan invested $2500 into his business, which account will be CREDITED?

• Cash in Bank for $2500

• Evan McA, Capital for $1500

• Evan McA , Capital for $2500

• None, because he really gave all of his money to charity.

In the general journal entry, what is the first thing you write?

• Transaction of debit

• year/date

• credit transaction

• the source document

What is another name for the book of original entry?

• Ledger

• Posting

• Journalizing

• Journal