Unit 13 Question and answers already passed 2024 Unit 1.0 Fundamentals of Accounting and Bookkeeping, Intuit Bookkeeping Study Material, Chapter Five: Double-Entry Bookkeeping, Bookkeeping
Proprietorship / Sole Prop - correct answer A business owned by one person. Simplest structure and not se...
Unit 1.0 Fundamentals of Accounting
and Bookkeeping, Intuit Bookkeeping
Study Material, Chapter Five: Double-
Entry Bookkeeping, Bookkeeping
Proprietorship / Sole Prop - correct answer ✔A business owned by one
person. Simplest structure and not separate from its owner for legal purposes
Partnership - correct answer ✔Business owned by two or more persons, the
owners are called partners. Not a separate legal entity. Profit/Loss "Pass
through" to owners.
Corporation - correct answer ✔Business organized as a separate legal entity
Limited Liability Company "LLC" - correct answer ✔Separate Business and
legal entity, but choice of how it is taxed. LLCs are fairly new structures.
10 Steps of Accounting Cycle - correct answer ✔1) Business transaction
occur and source documents are created
2) Analyze business transactions
3) record/Journalize the business transactions in the journals
4) Post the journals to general ledger accounts
5) Prepare a trial balance
6) Analyze the accounts, journalize and post adjusting entries
7) Prepare an adjusted trial balance
8) Prepare Financial Statemements
9) Journalize and post closing entries
,10) Prepare a post-closing trial balance
Accounting Transaction - correct answer ✔Business event that has a
monetary impact, such as selling goods to a customer or buying supplies from
a vendor.
Cash Account (definition) - correct answer ✔Current balance of cash held by
a business, usually in checking or savings accounts. ASSET / Debit balance
Accounts Receivable (definition) - correct answer ✔Sales on credit, which
customers must pay for at a later date. ASSET / Debit balance
Inventory (definition) - correct answer ✔This is items held in stock, for
eventual sale to customers. ASSET / Debit balance
Fixed Assets (definition) - correct answer ✔More expensive assets that the
business plans to use for multiple years. ASSET / Debit balance
Accounts Payable (definition) - correct answer ✔Liabilities payable to
suppliers that have not yet been paid. LIABILITY / Credit balance
Debt (definition) - correct answer ✔Cash loaned to the business by another
party
Equity (definition) - correct answer ✔Ownership interest in the business,
which is the founding capital and any subsequent profits that have bee
retained in the business. EQUITY / Credit balance
Revenue (definition) - correct answer ✔Sales made to customers (both on
credit and in cash). REVENUE / Credit balance
, Cost of Goods Sold (definition) - correct answer ✔Cost of goods or services
sold to customers. EXPENSE / Debit balance
Administrative Expenses (definition) - correct answer ✔These are a variety
of expenses required to run a business, such as salaries, rent, utilities, and
office supplies. EXPENSE . Debit balance
Income taxes (definition) - correct answer ✔Taxes paid to the government on
any income earned by the business. LIABILITY (if accrued) / Credit balance or
EXPENSE / Debit balance
Software Module Entries - correct answer ✔Forms in accounting software
which populate accounts for you, such as creating and invoice or recording a
customer invoice
Journal Entries - correct answer ✔Customized way to record accounting
information
General Ledger - correct answer ✔Master set of all accounts. Stores all
transactions that have been entered via modules or journal entries. May have
sub ledgers for high-volume transactions such as sales or purchases.
Balance Sheet - correct answer ✔Report which lists Assets, liabilities, and
equity as of the report date
Income Statement - correct answer ✔Report which lists revenues, expenses,
and profit or loss for a specific period of time
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