Debits and credits - Study guides, Class notes & Summaries

Bookkeeping Basics Part 2. Question and answers verified to pass 2024 Bookkeeping Basics Part 2, Accounting Topic 2 Double Entry Book Keeping, Bookkeeping with Quickbooks, AAT Level 2 - Bookkeeping Revenue - correct answer Revenue represents the income your client earns through their business operations. It's their gross proceeds from sales, whether that's products, services, rentals, or anything else that bring money into the business. Expenses - correct answer Expenses represent t...

3. The running balance form or the T account form is typically used in the trial balance to display the accounts and their amounts. True False 4. Dividends are an expense of a corporation and reduce both total assets and liabilities. True False 5. Dividends increase owners’ equity and therefore should be added to retained earnings. True False 6. Every business transaction is recorded by a debit to a balance sheet account and a credit to an income statement account. True False 7. Earn...

Which key components make up the bookkeeping process? (2) - Answer-recording and classifying transactions is known as bookkeeping. Describe the roles filled by a accountant (3) - Answer-Accounting is a system of summarizing, interpreting, and communicating financial data. What are the primary functions associated with accounting ? (4) - Answer-Accounting is the next step in the process. Accounting is the system of summarizing, interpreting, and communicating financial data. Specify func...

Test Bank for College Accounting A Practical Approach 14th Canadian Edition Jeffrey Slater, Debra Good. Table of Contents: Accounting Concepts and Procedures An Introduction Debits and Credits Analyzing and Recording Business Transactions Beginning the Accounting Cycle Journalizing, Posting, and the Trial Balance The Accounting Cycle Continued Preparing Worksheets and Financial Statements The Accounting Cycle Completed Closing and Post-Closing Trial Balance Special Journals and Subsidiary Ledger...

Bookkeeping Ch 1-6 Questions and Answers Already Passed What is the primary purpose of bookkeeping? The primary purpose of bookkeeping is to systematically record and organize financial transactions to provide accurate financial information. What is an account in bookkeeping? An account is a record used to track financial transactions related to a specific asset, liability, equity, revenue, or expense. What is the difference between a debit and a credit? A debit increases a...

A balance sheet summarizes the firm's CORRECT ANSWER assets, liabilities, net worth Owner's equity refers to the CORRECT ANSWER interest in or claim on the assets of the business The ledger is a book of CORRECT ANSWER individual accounts to which debits and credits are posted from the book of original entry Amortization is CORRECT ANSWER declining proration of added cost The process of transferring financial data from the journal to the ledger is called CORRECT ANSWER posting Pa...

Managerial Accounting, 16e (Garrison) Appendix 2A Activity-Based Absorption Costing 1) Feauto Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, I63E and E76I, about which it has provided the following data: Direct materials per unit $ 19.90 $ 54.40 Direct labor per unit $ 12.00 $ 31.50 Direct labor-hours per un...

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AAT Level 2 - Bookkeeping Transactions Questions and Answers 100% Pass What is the purpose of a sales invoice? A sales invoice documents the sale of goods or services, detailing the amount owed by the customer. How are purchases recorded in bookkeeping? Purchases are recorded as debits in the purchases account and credits in the accounts payable account. What is the function of a petty cash book? A petty cash book tracks small, everyday expenses paid in cash, helping to manage ...

Test Bank for College Accounting A Practical Approach 14th Canadian Edition Jeffrey Slater, Debra Good. Table of Contents: Accounting Concepts and Procedures An Introduction Debits and Credits Analyzing and Recording Business Transactions Beginning the Accounting Cycle Journalizing, Posting, and the Trial Balance The Accounting Cycle Continued Preparing Worksheets and Financial Statements The Accounting Cycle Completed Closing and Post-Closing Trial Balance Special Journals and Subsidiary Ledger...