Recording Transactions in a General Journal

Target Language or Knowledge:

accounting cycle a full range of activities that help a business keep its accounting records in an orderly fashion source document a paper prepared as evidence that a transaction occured invoice a bill; a form that lists the quantity, description, unit price, and total cost of the items sold and shipped to a buyer receipt a form that serves as a record of cash received memorandum a brief message that is usually written to describe a transaction that takes place within a business check stub the portion remaining after a check has been detached from a checkbook; contains details of the cash payment journal a chronological record of a business's transactions journalizing the process of recording business transactions in a journal manual accounting a system in which accounting information is processed by hand computerized accounting a system in which financial information is recorded by entering it into a computer general journal an all-purpose journal in which all transactions may be recorded chart of accounts a list of all the accounts used in journalizing a business's transactions liquidity ease with which an asset can be converted to cash