Accounting cycle

The accounting cycle begins by recording _____________ in the form of journal entries.

• Business transactions

• Financial information

• Corporate minutes

• Business contracts

After a business transaction has occurred, journal entries are recorded in the

• ledger

• journal

• trial balance

Once journal entries are recorded, they can be posted to:

• income statement

• ledger

• accounts

Transactions that cannot be recorded in a special journal are recorded in a general journal.

• true

• false

Transactions are recorded in a journal in chronological order.

• true

• false

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

• debit note

• credit note

• bank statement

• sales invoice

A debit is not the normal balance for which of the following?

• Asset account

• Drawings account

• Capital account

• Expense account

The purchase journal is

• used only to record credit purchases

• used only to record cash purchases

• used to record all purchases

A trial balance is a listing of

• transactions in a journal.

• general ledger accounts and balances.

• the totals from the journal pages.

Issued by the seller when receive payments from the buyer.

• Purchase Order

• Payment Voucher

• Receipt

• Credit Notes