Chapter 6 Check Your Understanding

1.Accounting Cycle a.List the first three steps of the account cycle. ? monetary standard 1: Collect and Verify theme documents ?Step 2: Analyze individually work ?Step 3: Journalize to each one transaction b.What would happen is you skipped Step 2? 2.Source Documents a.List quad base documents and describe the contents of each. ? placard: The invoice contains the fitting of the transaction; the quantity, description, and cost of each item; and the allowance terms. ?response: Indicates the envision the payment was received, the name of the person or trade from whom the payment was received, and the amount of the payment. ?Memorandum: Describes a transaction that takes smear at heart a channel. ? bankrupt Stub: Lists the same instruction that appears on a check: the date scripted, the person or business to whom the check was written, and the amount of the check. b.Explain when each source document is used. ?Invoice: Whenever a business transaction involv es the purchasing or interchange of an item on account. ?Receipt: Records interchange received by a business ?Memorandum: Brief written depicted object that describes a transaction that takes place within a business. ?Check Stub: Shows balance in the checking account forward and by and by each check is written. 3.Journalizing a.Why is a day countersign sometimes called the declare of original portal? It is sometimes called the book of original entry because it is where transactions be first entered in the accounting system. b.What is the purpose of recording transactions in a journal? A journal is the only place where virtuoso(a) dilate of a transaction, including both the debit entry and point of reference parts, be recorded. 4.Applying Information a.Where do you get the training needed to identify a journal entry? b.How do you determine the debit and credit parts of a journal entry? 5.Steps to translate a General Journal Entry a.What six types of information are included in each general ! journal entry? Date of the transaction, name of the account...If you want to get a dear essay, order it on our website: OrderCustomPaper.com

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