Accounting - 6. The General Journal

A fiscal year is an accounting period that begins on January 1 and ends on December 31.

• True
• False

When recording a business transaction, the amount is always entered first because it is the most important part of the journal entry.

• True
• False

A source document is a business paper that proves a transaction occurred.

• True
• False

A journal is sometimes called a "book" of original entry because it is the only place in which the details of the transaction are recorded.

• True
• False

A check was written on April 15.  It is being recorded today, April 17.  The date used for recording the transaction is April 17.

• True
• False

Which of the following is a calendar year accounting period?

• Jan. 1 - Dec. 31
• Feb. 1 - Jan. 31
• July 1 - June 30
• April 15 - March 31

The analysis of a business transaction into its debit and credit parts is required for both manual and computerized accounting systems.

• True
• False

The different kinds of source documents a business uses depends on the nature of the transaction.

• True
• False

If an error is discovered before posting occurs, simply draw a line through the incorrect item and write the correct item above it.

• True
• False

The debit part of a business transaction should be indented one-half inch from the left edge of the paper.

• True
• False