NJ CALA FInance Questions with complete solution 2023/2024

NJ CALA FInance Questions with complete solution 2023/2024 Cash Basis Accounting - correct answer Keeping records that shows only income actually received during a fiscal period and only expenses paid during a fiscal year. *Record income when cash or check is received *Record expense when check is written Accrual Basis Accounting - correct answer Keeping records that show all income earned during a fiscal period even though it isn't received yet and all expenses incurred during a fiscal period even though the expenses are not yet paid *Record income when a bill is written *Record expense when an order is placed Double Entry Accounting - correct answer Recording of a debit and credit for each transaction **Debits must always equal credits** Debits - correct answer An entry made on the left side of the account Credits - correct answer An entry made on the right side of the account