Bookkeeping Ch 1-6 UPDATED ACTUAL Exam Questions and CORRECT Answers
3 views 0 purchase
Course
Bookkeeping
Institution
Bookkeeping
Bookkeeping Ch 1-6 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Bookkeeping - CORRECT ANSWER - the activity of recording business transactions
Double-entry bookkeeping - CORRECT ANSWER - a system of recording and classifying
business transactions that maintains the balance of the account...
Bookkeeping Ch 1-6 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Bookkeeping - CORRECT ANSWER - the activity of recording business transactions
Double-entry bookkeeping - CORRECT ANSWER - a system of recording and classifying
business transactions that maintains the balance of the accounting equation
General ledger - CORRECT ANSWER - the ledger that contains all of the financial
accounts of a business
Cash receipts journal - CORRECT ANSWER - a special journal used to record ONLY cash
receipt transactions
Cash disbursement journal - CORRECT ANSWER - is a chronological listing of all
payments
SOMETIMES CALLED A CHECK REGISTER AND IS SIMILAR TO THE RECORD KEPT
FOR A PERSONAL CHECKING ACCOUNT.
Bookkeeping - CORRECT ANSWER - Bookkeeping, the methodical way in which
business tracts their transactions, is rooted in accounting.
-Accounting is the total structure of records and procedures used to record, classify, and report
information about a business's financial transactions.
- Bookkeeping involves the recording of the financial information into the accounting system
while maintaining adherence to solid accounting principles.
Balance sheet - CORRECT ANSWER - Balance sheet: The financial statement that
presents a snapshot of the company's financial position (assets, liabilities, and equity) as of a
particular date in time. - It's called a balance sheet because the things owned by the company
(assets) must equal the claims against those assets (liabilities and equity)
, Assets - CORRECT ANSWER - All things a company owns in order to successfully run
its business, such as cash, buildings, land, tools, equipment, vehicles, and furniture.
Liabilities - CORRECT ANSWER - All the debts the company owes, such as bonds, loans,
and unpaid bills.
Equity - CORRECT ANSWER - All the money invested in the company by its owners. In
a small business owned by one person or a group of people, the owners' equity is shown in a
Capital account.
Retained earnings - CORRECT ANSWER - the accumulated earnings from a firm's
profitable operations that were reinvested in the business and not paid out to stockholders in
dividends
Drawing account - CORRECT ANSWER - a temporary owner's equity account that is
used when an owner withdraws cash or other assets from the business for personal use.
Income statement - CORRECT ANSWER - The financial statement that presents a
summary of the company's financial activity over a certain period of time, such a a month,
quarter, or year. The statement starts with Revenue earned, subtracts out the Cost of Goods Sold
(COGS) and the Expenses, and ends withe the bottom line - Net Profit or Loss.
Revenue - CORRECT ANSWER - Revenue: All money collected in the process of selling
hte company's goods and services. Some companies also collect revenue through other means,
such as selling assets the business no longer needs or earning interest by offering short-term
loans to employees or other businesses.
Cost of Goods Sold - CORRECT ANSWER - COGS: All money spent to purchase or
make the products or services the company plans to sell to its customers.
Expenses - CORRECT ANSWER - Expenses: All money spent to operate the company
that's not directly related to the sale of individual goods or services.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
