FABM1

• Credit - liabilities normal balance
• Credit- liability increase
• simple entry - one debit and one credit
• true - only transactions which are financial bearing to the business are recognized
• Sales invoice - other term for charge invoice
• voucher number - other term for check
• cash receipts - other term for official receipts
• sales on account journal - other term for sales journal
• credit - owners equity normal balance
• General journal - provides chronological records of transactions
• service business - provides intangible products such as offering professional skills and expertise
• t account - basic form is like the letter t
• ledger - refers to the accounting book in which the accounts and their related amounts as recorded in the journal are posted periodically
• Normal balance - refers to the increase sides of the accounts which may either be a debit or a credit
• debit cash column - represents the amount of cash received for a particular transaction
• debit purchases column - represents the amount of the goods purchases as indicated in the charger invoice from the supplier
• check - represents the identifying number of the check issued for the related cash payment
• charge invoice number - represents the identifying number of the source document issued by the supplier when items, goods, or merchandise were delivered to the company when purchase was made
• credit - revenue normal balance
• debit balance - running balance amount is positive, the account is a ____ balance
• credit balance - the running balance is negative
• Credit sales column - in the sales journal, this represents the amount of sales transactions indicated in the charge invoice
• debits account receivable - in the sales journal this represents the amount of sale transactions indicated in the charge invoice
• Reference - identifies the page number of the general or special journal from which the info was taken
• vendor number - in the subsidiary ledger, this is assigned number for each vendor as reference in keeping the records of a supplier
• Upper portion - in the subsidiary ledger, indicates the name and address of the vendor or supplier
• unadjusted trial balance - shows all accounts with their corresponding balances, segregated into debit and credit columns
• charge invoice from the supplier - source document of purchase journal
• book of accounts - financial memory
• official receipts - the source document of the cash receipts journal is ___ issued by the business
• charge invoice - this is the source document of the sales journal which is for credit transactions
• invoices from the supplier - the source documents for purchase journal
• double rule - the total of debit and credit columns that signifies the trial balance is already in balance
• double rule - the total of the debit and credit columns
• general journal - this disclose in one place the complete effects of the transactions
• general journal - this helps prevent and locate error because debit and credit can easily be compared
• general journal - this is a controlling account because it summarizes all activities that have taken place as recorded in subsidiary ledger
• general journal - the most basic journal
• cash disbursement journal - the opposite of the cash receipt journal
• charge invoice - represents the identifying number of the source documents issued to the customer when the sale was made