CHAPTER 3 - VOCAB

What is the primary purpose of a journal in accounting?

• To summarize financial statements

• To record transactions in chronological order

• To calculate taxes

• To audit financial records

Which document is used as evidence of a transaction and is often attached to a journal entry?

• Check

• Source Document

• Memorandum

• Receipt

What is the process of recording transactions in a journal called?

• Proving Cash

• Journalizing

• Invoicing

• Memorandum

Which column in a journal is used for amounts that do not have a specific account title?

• Special Amount Column

• General Amount Column

• Invoice Column

• Receipt Column

What is a sales invoice primarily used for?

• To record cash payments

• To document a sale on account

• To prove cash

• To issue a memorandum

In double-entry accounting, every transaction affects at least how many accounts?

• One

• Two

• Three

• Four

What is the purpose of proving cash?

• To ensure that the cash account balance matches the actual cash on hand

• To verify the accuracy of invoices

• To record journal entries

• To create a memorandum

Which document is typically issued when a customer makes a payment?

• Invoice

• Receipt

• Memorandum

• Check

What is a memorandum used for in accounting?

• To record a transaction that does not have a source document

• To issue a sales invoice

• To prove cash

• To journalize entries

Which column in a journal is used for frequently occurring transactions with the same account title?

• General Amount Column

• Special Amount Column

• Invoice Column

• Receipt Column