Accounting 1 Obj. 3.02

A form that contains a brief message describing a transaction.  Often used when there is no other type of source document

• memorandum

• sales invoice

• check

A person can judge the success of a decision by asking:

• did the decision help me meet my goal?

• am I making any money?

Recording the debit and credit part of a transaction.  Every transaction affects at least two accounts.  Debits must equal credits

• entry

• journal

• journalizing

• double entry accounting

A form that is used to record transactions in chronological order

• journal

• entry

• double entry

• accounting form

A journal that has two amount columns that can contain a variety of different transactions

• general journal

• entry

• transaction form

• check

When cash is paid for insurance, which account is listed on the first line of entry?

• Cash

• Prepaid Insurance

• Miscellaneous Expense

When supplies are bought on account, which account is listed on the first line of the entry?

• Expenses

• Insurance

• Supplies

• Accounts

When supplies are bought on account, which account is listed on the second line of the entry?

• Accounts Payable

• Revenue

• Supplies

• Insurance

When cash is paid on account, which account is listed on the second line of the entry?

• Check

• Memorandum

• Cash

• Expenses

In what order are transactions recorded in a journal?

• outline

• numerical order

• chronological order

• random order