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Double Entry Bookkeeping Exam Questions and Answers

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Double entry accounting - ANSWER-A method of bookkeeping which records each financial transaction twice using debits and credits. Double entry bookkeeping system - ANSWER-A method of bookkeeping that reflects the dual nature of each transaction as it affects the business. Ledger - ANSWER-A bo...

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Double Entry Bookkeeping Exam Questions and Answers
Double entry accounting - ANSWER-A method of bookkeeping which records each financial transaction twice using debits and credits.
Double entry bookkeeping system - ANSWER-A method of bookkeeping that reflects the dual nature of each transaction as it affects the business.
Ledger - ANSWER-A book in which entries posted from the journals are re-organized into accounts.
Journal - ANSWER-A book or set of books where your transactions are first entered.
Journal entries - ANSWER-A term used to describe the transactions recorded in a journal.
T Account - ANSWER-A particular method of displaying an account where the debits and associated information are shown on the left, and credits and associated information on the right.
Trial Balance - ANSWER-A statement showing all the accounts used in a business and their balances.
Balance B/D - ANSWER-The balance brought down as opening balance of a ledger pulled from previous accounting period.
Balance C/D - ANSWER-The balance carried down as the closing balance of a ledger pushed to the next accounting period.
Debit Balance - ANSWER-If Debit side > Credit side
Credit Balance - ANSWER-If Credit side > Debit side
Debit - ANSWER-An accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry.
Credit - ANSWER-An accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry.
Business transactions - ANSWER-The events that have a monetary impact on the financial statements of an organization

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