Exam (elaborations)
Bookkeeping level 1 Latest Updated 2024
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Exam of 9 pages for the course Bookkeeping at Bookkeeping (Bookkeeping level 1)
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Bookkeeping level 1adjusting entries - answerJournal entries made at the end of an accounting period to
adjust certain balances so that the statements will accurately reflect the transactions for
the period.
Asset - answerGood owned by the business for the purposes or earning income
Bookkeeping - answerThe process of entering essential facts about business into books
of original entry
Capital - answerThe difference between assets and liabilities
Credit column - answerThe right hand column of a journal entry, trial balance, or ledger
sheet
Expenses - answerThe costs of earning revenue
Financial periods - answerThe balance sheet of a business is prepared at a point in
time, while the income statement is for a period ended on the date of the Balance sheet
Financial Statements - answerStatements that record the assets, liabilities, capital,
revenue and expenses of a business enterprise.
Folio - answerA term used to show which journal the entry originated from
Journals - answerBooks of original entry where all original documents are first entered
Ledgers - answerBooks such as General Ledger, Accounts Receivable Ledger,
Accounts Payable Ledger, and Payroll Ledger that record the details from various
journals
liability - answerAn amount owed by a business
Net Income - answerThe total revenue less total expenses
Revenue - answerAn amount earned for performing services or sling goods
Trial Balance - answerRecording ledger balances in debit and credit columns to
determine that the totals are equal
vendor - answerA supplier of goods and services
, Dr or debit - answerRepresents an increase in an asset and expense accounts and a
decrease in revenue, liability and capital accounts
Cr or Credit - answerRepresents an increase in liability, capital, and revenue accounts
and a decrease in asset and expenses accounts
+ or - - answerThese symbols indicate debit or credit where applocable
(999) - answerValues appearing parenthesis represent a negative balance or amount
double-entry bookkeeping - answerthe practice of writing every business transaction in
two places
double-entry bookkeeping - answerBookkeepers record all transactions in two places so
they can check one list of transactions against the other for accuracy.
revenue - answerMoney that earned by an individual for work he/she has performed
Expense - answerMoney that is paid out by an individual for the various cost of living
Personal income statement - answerListing of an individual's revenues and expenses
over a specific period of time.
Net Income - answerthe difference between total revenue and total expenses when total
revenue is greater
net loss - answerThe difference between total revenue and total expenses when total
expenses are greater
net loss - answerWhen expenses are greater than income
net worth - answertotal assets minus total liabilities
Assets examples - answercash, land, account receivable, notes receivable, vehicles,
supplies, equipment, loan to a friend
Net Worth or Owner's Equity - answerAssets minus liabilities
Fundamental Bookkeeping Equation - answerAll Assets are listed on the left side and all
liabilities and net worth are listed on the right side
Fundamental Bookkeeping Equation - answerAssets = Liabilities + Net Worth or
Owner's Equity
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