Ch. 3 Accounting Terms

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Questions: 11 | Attempts: 108

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Ch. 3 Accounting Terms - Quiz

Definitions


Questions and Answers
  • 1. 

    A form for recording transactions in chronological order.

    • A.

      Journal

    • B.

      Check

    • C.

      Entry

    Correct Answer
    A. Journal
    Explanation
    A journal is a form used to record transactions in chronological order. It is a written record that includes details such as the date, description, and amount of each transaction. The purpose of a journal is to provide a complete and organized record of all financial activities of a business. By maintaining a journal, businesses can track and analyze their transactions, ensuring accuracy and transparency in their financial reporting.

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  • 2. 

    Recording transactions in a journal

    • A.

      Journal

    • B.

      Journalizing

    • C.

      Receipt

    Correct Answer
    B. Journalizing
    Explanation
    Journalizing is the process of recording transactions in a journal. A journal is a chronological record of all financial transactions of a business, including the date, description, and amount of each transaction. Journalizing involves analyzing the source documents, such as receipts or invoices, and recording the relevant details in the journal. This step is essential in the accounting process as it provides a detailed and organized record of all transactions, which can then be used to prepare financial statements and analyze the financial performance of the business.

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  • 3. 

    Information for each transaction recorded in a journal

    • A.

      Entry

    • B.

      Invoice

    • C.

      Memorandum

    Correct Answer
    A. Entry
    Explanation
    The correct answer is "entry" because a journal entry is used to record information for each transaction in a journal. It is a formal record that includes the date, accounts involved, and the amount of the transaction. An entry is made to ensure that all financial transactions are properly recorded and can be tracked and analyzed later. In contrast, an invoice is a document issued by a seller to a buyer, while a memorandum is a written message or reminder.

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  • 4. 

    A journal with 2 amount columns in which all kinds of entries can be recorded.

    • A.

      General journal

    • B.

      Invoice

    • C.

      Check

    Correct Answer
    A. General journal
    Explanation
    The given answer, "general journal," is correct because a general journal is a type of journal that contains two amount columns, allowing for the recording of various types of entries. It is a book of original entry where all transactions are initially recorded before being transferred to the respective ledger accounts. The general journal provides a chronological record of all financial transactions, making it a suitable choice for recording entries of different kinds.

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  • 5. 

    The recording of debt and credit parts of a transaction

    • A.

      Source Document

    • B.

      Check

    • C.

      Double-Entry Accounting

    Correct Answer
    C. Double-Entry Accounting
    Explanation
    Double-Entry Accounting is the correct answer because it is a system of recording financial transactions that involves recording both the debt and credit parts of a transaction. In this system, every transaction affects at least two accounts, with one account being debited and another account being credited. This ensures that the accounting equation (assets = liabilities + equity) remains balanced. The use of double-entry accounting provides a more accurate and complete record of financial transactions and helps to prevent errors and fraud.

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  • 6. 

    A business paper from which information is obtained for a journal entry

    • A.

      Source document

    • B.

      Invoice

    • C.

      Sales invoice

    Correct Answer
    A. Source document
    Explanation
    A source document is a business paper that provides information for a journal entry. It is the original record that supports a transaction and serves as evidence of the transaction's occurrence. In this case, an invoice or sales invoice can be considered as a source document as it contains detailed information about a sale or purchase transaction. However, the term "source document" is more general and encompasses a wider range of documents that can be used to record various types of transactions, not just sales invoices.

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  • 7. 

    A business form ordering a bank to pay cash from a bank account.

    • A.

      Source document

    • B.

      Check

    • C.

      Receipt

    Correct Answer
    B. Check
    Explanation
    The given correct answer is "check" because a check is a business form that is used to order a bank to pay cash from a bank account. It is a written document that serves as a form of payment and can be used as proof of payment. Checks are commonly used in business transactions to transfer funds from one account to another.

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  • 8. 

    A form descibing the goods or services sold, the quantity, and the price

    • A.

      Invoice

    • B.

      Recepit

    • C.

      Memorandum

    Correct Answer
    A. Invoice
    Explanation
    An invoice is a document that provides a detailed description of the goods or services sold, including the quantity and price. It is typically used by businesses to request payment from their customers. Unlike a receipt, which is given to the customer after the payment is made, an invoice is sent before the payment is received. A memorandum, on the other hand, is a written record or note used for internal communication within an organization. Therefore, the correct answer in this case is invoice.

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  • 9. 

    An invoice used as a source document for recording a sale on account

    • A.

      Sales Invoice

    • B.

      Check

    • C.

      Invoice

    Correct Answer
    A. Sales Invoice
    Explanation
    A sales invoice is a document that is used as a source document for recording a sale on account. It provides detailed information about the sale, including the date, description of the items sold, quantity, price, and total amount due. This document is important for both the buyer and the seller as it serves as proof of the transaction and helps in tracking sales and accounts receivable.

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  • 10. 

    A business form giving written awknowledgement for cash received

    • A.

      Sales invoice

    • B.

      Receipt

    • C.

      Journal

    Correct Answer
    B. Receipt
    Explanation
    A receipt is a business form that provides written acknowledgment for cash received. It serves as proof of payment and is typically issued to customers after a transaction has been completed. A sales invoice, on the other hand, is a document that lists the products or services provided by a business and the amount due from the customer. A journal is a record-keeping book used to record financial transactions. Therefore, the correct answer in this case is "receipt."

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  • 11. 

    A form on which a brief message is written describing a transaction

    • A.

      Memorandum

    • B.

      Recepit

    • C.

      Invoice

    Correct Answer
    A. Memorandum
    Explanation
    A form on which a brief message is written describing a transaction is called a memorandum. It is typically used for internal communication within an organization to document and convey important information about a transaction or event. Unlike a receipt or an invoice, which are usually provided to external parties as proof of a transaction, a memorandum serves as an internal record or communication tool.

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