Chapter#1A: Review Of Bookkeeping Flashcards Preview

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Flashcards in Chapter#1A: Review Of Bookkeeping Deck (27)
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1

What is Bookkeeping?

It's the process of recording transactions and financial activities of a business

2

What are Invoices?

are documents issued by companies as evidence of transactions made

3

What is GST?

Canadian Goods and Services Tax

4

What is HST?

Harmonized Sales Tax

5

What is a Purchase Invoice?

is a record of purchase made by a company

6

What is a Sale's Invoice?

it's a record of the sales made by a company for goods and/or services.

7

What does the Sales Invoice include?

the date of sale
the customer
invoice number customer number
Quantity Shipped
Taxes
Total Amount Due
Terms of Sale

8

What does the Purchase Invoice include?

name of supplier
business number
company name and address
Account number
Invoice Date
Quantities ordered
Taxes
Final amount due
and Payment terms

9

What does N/30 mean?

the company may allow the customer 30 days to pay the invoice before interest is charged

10

What was 2/20 Mean?

it means the vendor may allow a 2% discount if the invoice is paid within 20 days of the invoice date

11

What does the Sale Journal allow you to do?

Record the entire transaction on one line

12

in what Journal is a Purchase invoiced entered into?

The Purchase Journal as a one line entry

13

in what Journal is a Sales invoiced entered into?

Sales Journal with enough info to identify the source of the entry, financial info and the customer

14

What is the Cash Receipts Journal?

to record all cash from customers payments on account

15

What is the Cash Disbursements Journal

to record all cash paid by the company to suppliers

16

What are the 3 ways you'll likely enter cash disbursements

from checks, check stubs or copies of checks

17

What must you enter from a check?

an account number in lower left corner

18

What must you enter from a Check Stub?

the info should be on the stub

19

What must you enter from a copy of a check?

complete details should be recorded on the copy

20

What is one thing you must do when entering cash disbursements?

You must determine the reason

21

What are Accounts Payable Ledgers?

it lists all vendors to whom your company has charged purchases

22

What is the Accounts Receivable Ledger?

lists all customers and their outstanding balances for non-cash or on account sales made

23

When is the General Ledger Trial Balance Prepared?

once each month

24

Why is the general ledger Trial Balance Prepared?

to ensure the general ledger accounts are balanced

25

Why would the Accounts Receivable Ledger be updated daily?

is updated daily to enable the company to determine credit limits, give discounts on payments, and to keep up-to-date records of all customers.

26

Why do you age an Accounts Receivable Ledger Trial Balance?

To analyze how old the outstanding accounts are, for statement purposes and for collection purposes.

27

Why do sales and purchase invoices generally request the same information?

The sales invoice of the seller or vendor represents the purchase invoice of the purchaser. Since they are in effect the same, the same information is generally requested on both invoices.