Future Business Leaders of America (FBLA) Accounting Practice Test

Which document is used to write a brief message describing a transaction?

1. Memo

2. Statement

3. Journal

4. Check

The correct answer is: Memo

The correct choice for describing a transaction in a brief message is a memo. A memo serves as an internal communication tool within a business or organization, allowing individuals to convey important information succinctly and effectively. When documenting transactions, a memo can highlight essential details such as the nature of the transaction, parties involved, and any relevant dates or amounts. In contrast, statements are typically used to summarize a series of transactions over a period, and while they document financial activities, they are not meant for brief messaging about specific transactions. Journals record transactions in chronological order for accounting purposes but are more detailed and formal than a simple message. Checks are financial instruments used to transfer money, not for providing narrative descriptions of transactions. Thus, the memo stands out as the most fitting document for summarizing and communicating transaction details clearly and concisely.