Bookkeeping Basics Questions with Certified Solutions
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Bookkeeping Basics
Institution
Bookkeeping Basics
Bookkeeping Basics Questions with
Certified Solutions
What is a cash disbursement journal used for?
A cash disbursement journal records all payments made in cash, including payments to
suppliers, employees, and other expenses.
How do you handle unrecorded transactions?
Unrecorded tran...
Bookkeeping Basics Questions with
Certified Solutions
What is a cash disbursement journal used for?
✔✔ A cash disbursement journal records all payments made in cash, including payments to
suppliers, employees, and other expenses.
How do you handle unrecorded transactions?
✔✔ Unrecorded transactions are identified and entered into the journal and ledger to ensure all
financial activities are accurately reflected in the records.
What is the purpose of a purchase journal?
✔✔ A purchase journal tracks all credit purchases of inventory or supplies, helping to manage
accounts payable and inventory levels.
What is a sales journal?
✔✔ A sales journal records all sales of goods or services on credit, which helps in managing
accounts receivable and revenue tracking.
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, How do you correct an error in the bookkeeping records?
✔✔ Errors are corrected by making an adjusting entry to the appropriate accounts to accurately
reflect the correct amounts in the financial records.
What is the function of a payroll journal?
✔✔ A payroll journal records all payroll-related transactions, including wages, taxes, and
benefits, ensuring accurate employee compensation and deductions.
What is a general journal entry?
✔✔ A general journal entry records financial transactions that do not fit into specialized
journals, providing a detailed record of unusual or complex transactions.
How is amortization different from depreciation?
✔✔ Amortization is the process of gradually writing off the cost of intangible assets, such as
patents, while depreciation applies to tangible assets like machinery.
What is the purpose of financial statement analysis?
✔✔ Financial statement analysis involves evaluating financial reports to assess a company’s
performance, profitability, and financial stability.
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