Question Answer
Accounting cycle The name given to the collective process of recording and processing the accounting events of a company.
Calendar year Starting January 1 and ending December 31. or one year on the Gregorian calendar.
Check stub A part of a check that is kept for record keeping purposes. the stub is the part of a payroll check that includes information about the current paycheck as well as payments to date. The check stub can also be a carbon copy of a check that is made when the
Fiscal year A fiscal year is a period that a company or government uses for accounting purposes and preparing financial statements. A fiscal year may not be the same as a calendar year.
General journal The general journal is the master journal that all company transactions or journal entries are recorded in.
Invoice A commercial document that itemizes a transaction between a buyer and a seller.
Journal A detailed account that records all the financial transactions of a business.
Journalizing Starts when a business transaction occurs. Analyze each business transaction in order to understand what accounts are affected by the business transaction.
Memorandum A document given to an account holder which states that the account balance has been decreased as a result of factors other than a cash withdrawal or a written check being cashed in.
Receipt The cash receipt is a document that proves the receipt of cash. It often refers to the bank receipt which is the slip that the bank sends to you as a proof that the money has been credited to your bank account.
Source document The original record containing the details to substantiate a transaction entered in an accounting system.
Chapter 6

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