Bookkeeping Basics Exam Questions
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What does a bookkeeper typically do? - Bookkeepers have many
responsibilities which include, record financial transactions, reconcile bank
accounts and manage bank feeds, manage accounts receivable, work with
tax prepa...
What does a bookkeeper typically do? - ✔✔Bookkeepers have many
responsibilities which include, record financial transactions, reconcile bank
accounts and manage bank feeds, manage accounts receivable, work with
tax preparers and assist with tax compliance, and generate financial
statements.
Honesty - ✔✔As a bookkeeper, you must always act with integrity and
honesty. This means:
Reporting financial data in accurate and timely manner.
Owning any mistakes and doing everything you can to fix them
Being open and transparent with your client about the state of their
finances.
Objectivity - ✔✔Because accurate financial records are vital to the success
of any business, clients rely on their bookkeeper to act objectively at all
times. This means:
,Never taking a job that might pose a conflict of interest
Never allowing another party to influence your findings
Never letting personal bias get in the way of performing your duties.
Confidentiality - ✔✔Clients entrust bookkeepers with very sensitive
financial information, and a business owner must be able to trust that their
bookkeeper will treat their data with the utmost care. This means:
Never discussing anything relating to a client outside of the job.
Never using inside information of a client for personal gain.
For more info visit: www.icbusa.org
Professionalism - ✔✔Any business owner will expect their bookkeeper to
act professionally at all times. This means:
Being courteous and considerate of the business owner's needs
Avoiding any activity, personal or professional, that could bring shame to
the profession or business.
Assets - ✔✔Assets are what the company owns or controls and expects to
gain benefit from. The simplest example is cash.
Liability - ✔✔Liability are what the company owes to others.
Equity - ✔✔Equity is the owner's stake in the company. It's how much
they've invested or withdrawn.
, Double-entry accounting - ✔✔a way of bookkeeping that tracks which
accounts increase and which decrease for a given transaction. Increases
and decreases are recorded in a debit and credit columns and the total
debits and total credits for a transaction have to be balanced.
5 account types - ✔✔assets, liability, equity, revenue and expenses
Assets+Expenses= Liabilities + Equity + Revenue
DEA/LER
To increase an account you will DEBIT an Expense or Asset
but CREDIT a Liability, Equity or, Revenue account
How would you record a $100 cash payment to the tractor supply store?
A) Debit Cash to increase the account
B) Debit Cash to decrease the account
C) Credit Cash to increase the account
D) Credit Cash to decrease the account - ✔✔D) Credit Cash to decrease
the account
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