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Bookkeeping Guide Questions with correct Answers
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Exam of 8 pages for the course Bookkeeping at Bookkeeping (Bookkeeping Guide)
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Bookkeeping GuideIf a business owner uses $10,000 of his personal money as a down-payment on the
purchase of a piece of property for the business, that $10,000 would be considered... -
answerEquity
Rosemary got a 24-month 0% loan from a store to buy a copier. The copier cost $1,500.
Which parts of the accounting equation does this impact? - answerAssets and Liabilities
Rosemary bought some advertising for $150 on her credit card. Which part(s) if the
equation does this impact? - answerLiabilities and Equity
Both sides of the accounting equation are ALWAYS affected. - answerNo! Sometimes
only one side is affected, but both sides always have to be equal.
What is the accounting equation? - answerAssets = Liabilities + Equity
Rosemary bought some inventory for $2,000 cash. Which part(s) of the accounting
equation does this impact? - answerAssets
What are the two sub-accounts that affect Equity? - answerIncome and Expenses
In what order do the accounts appear on the Chart of Accounts? - answerAssets,
Liabilities, Equity, Revenue, Expenses
The listing of all accounts used by a business to record and classify financial
transactions is the... - answerChart of Accounts (COA)
What is used to classify and summarize financial transactions? - answerA Financial
Ledger
The two-column summary of all the debits and credits in the Chart of Accounts is the... -
answerTrial Balance
Which financial statement shows the balances in the accounts as of a specific date? -
answerBalance Sheet
If a business owner wanted to know the financial health of his company, which financial
statement would he need to see? - answerAll 3 financial statements
If a business owner wanted to know where her cash came from and where it went, she
would need which financial statement? - answerStatement of Cash Flows
, If a business owner wanted to know how much equity was in their business, which
financial statement would you provide? - answerBalance Sheet
Which financial statement is also referred to as the Statement of Financial Position? -
answerBalance Sheet
If a business owner asked you for their Profit and Loss (P&L) report, which financial
statement would you provide? - answerIncome Statement
Operating, Investing, and Financing activities are shown on which financial statement? -
answerStatement of Cash Flows
Which financial statement is a temporary statement that gets closed out? -
answerIncome Statement
Which financial statement would show a company's profit for January of the current
year? - answerIncome Statement
Which financial statement is like the accounting equation in financial statement form? -
answerBalance Sheet
The bookkeeping cycle starts with a financial transaction that goes into the... -
answerJournal
Once a transaction is in the Journal, the Journal feeds into the... - answerLedger
The Ledger feeds into the... - answerTrial Balance
In regards to the bookkeeping cycle, the Trial Balance feeds into the... -
answerFinancial Statements
T or F. If a transaction does not fall into a Special Journal, then it is posted to the Trial
Balance. - answerFalse
What are some advantages of Special Journals? - answerAllows the bookkeeper to
focus, Reduces clutter, less posting from journal to ledger
What are the most common Subsidiary Ledgers? - answeraccounts receivable and
accounts payable
What are the most common types of Cash Journals? - answerCash Receipts Journal
(CRJ) and Cash Disbursements Journal (CDJ)
What does it mean when sales are made "on account"? - answerNo cash was received
and an Accounts Receivable was created.
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