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Chapter 6
Term | Definition |
---|---|
Accounting Cycle | Accounting period of a business is separated into activities that help the business keep its record in an orderly fashion. |
Source Document | A paper prepared as evidence that a transaction has occurred. |
Invoice | A source document that list the quantity , description unit price and the total cost of item sold and shipped to the buyer. |
Receipt | A source document that serves as a record of cash received. |
Memorandum | A brief written message that describes a transaction that take place within a business. |
Check Stub | A source document that that list the same information as a check and show the balance in the checking account before and after each check is written. |
Journal | Record of transactions of the business. |
Journalizing | The process of recording business transactions in a journal. |
Fiscal Year | An accounting period for 12 months. |
Calendar Year | Begins on January 1st and ends on December 31st. |
General Journal | All purpose journal in which all the transactions of a business is recorded. |