Accounting Final Review (4-6)

Seth purchased chairs from a wholesaler for his furniture store. Once Seth paid for the chairs, the wholesaler sent him a statement confirming that the payment was received for the purchase. This type of source document is a(n)...

• Bank statement

• Invoice

• Memo

• Receipt

A detailed record of financial transactions in order by DATE is a...

• Income statement

• Journal

• Ledger

• Receipt

The process of ensuring the bank account balance(s) of an organization agrees with its cash account records is called...

• Double checking

• Journalizing

• Posting

• Proving cash

The process of transferring transactions from a journal to a ledger is...

• Double checking

• Ledgerizing

• Posting

• Proving cash

A collection of all account transactions and balances in an accounting system, organized by account.

• Chart of accounts

• Ledger

• Journal

• Posting

A list of all account titles and account numbers used in a ledger is called the

• Chart of accounts

• Income statement

• Journal

• Ledger

Your company used cash to purchase $3,000 worth of equipment. This will change the balance of assets on the balance sheet.

• True

• False

Companies first record transactions in a...

• Chart of accounts

• Journal

• Ledger

• Income statement

Which of the following is NOT a characteristic of a receipt?

• It is issued by the seller.

• It acknowledges payment received.

• It is used to request payment.

• It serves as proof of transaction for the buyer.

A series of journal entries made at the end of an accounting period to convert a company's accounting records from a cash basis to an accrual basis are called...

• Accruals

• Adjusting entries

• Deferrals

• Unadjusted trial balance