Accounting Terminology Quiz

What is the purpose of a journal?

• To record debit and credit parts of a transaction

• To order a bank to pay cash from a bank account

• To describe the goods or services sold

• To give written acknowledgement for cash received

What is the definition of journalizing?

• Recording transactions in a journal

• Recording information for each transaction in a journal

• Recording a brief message to describe a transaction

• Recording a sale on account

What is a source document?

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

• A form for recording transactions in chronological order

• A form giving written acknowledgement for cash received

• A form describing the goods or services sold

What is the purpose of an invoice?

• To describe the goods or services sold, the quantity, the price, and the terms of sale

• To record debit and credit parts of a transaction

• To order a bank to pay cash from a bank account

• To give written acknowledgement for cash received

What is the purpose of a sales invoice?

• To serve as a source document for recording a sale on account

• To record debit and credit parts of a transaction

• To order a bank to pay cash from a bank account

• To give written acknowledgement for cash received

What is the purpose of a receipt?

• To give written acknowledgement for cash received

• To record debit and credit parts of a transaction

• To describe the goods or services sold, the quantity, the price, and the terms of sale

• To serve as a source document for recording a sale on account

What is the purpose of a check?

• To order a bank to pay cash from a bank account

• To record debit and credit parts of a transaction

• To describe the goods or services sold, the quantity, the price, and the terms of sale

• To give written acknowledgement for cash received

What is the purpose of a memorandum?

• To write a brief message to describe a transaction

• To record debit and credit parts of a transaction

• To describe the goods or services sold, the quantity, the price, and the terms of sale

• To give written acknowledgement for cash received

What is the purpose of an entry?

• To provide information for each transaction recorded in a journal

• To order a bank to pay cash from a bank account

• To describe the goods or services sold, the quantity, the price, and the terms of sale

• To give written acknowledgement for cash received

What is the purpose of double-entry accounting?

• To record debit and credit parts of a transaction

• To order a bank to pay cash from a bank account

• To describe the goods or services sold, the quantity, the price, and the terms of sale

• To give written acknowledgement for cash received