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Bookkeeping level 1 questions with correct answers
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Bookkeeping level 1 questions with correct answers
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Bookkeeping level 1adjusting entries - correct answer ✔✔Journal entries made at the end of an accounting period to adjust
certain balances so that the statements will accurately reflect the transactions for the period.
Asset - correct answer ✔✔Good owned by the business for the purposes or earning income
Bookkeeping - correct answer ✔✔The process of entering essential facts about business into books of
original entry
Capital - correct answer ✔✔The difference between assets and liabilities
Credit column - correct answer ✔✔The right hand column of a journal entry, trial balance, or ledger
sheet
Expenses - correct answer ✔✔The costs of earning revenue
Financial periods - correct answer ✔✔The balance sheet of a business is prepared at a point in time,
while the income statement is for a period ended on the date of the Balance sheet
Financial Statements - correct answer ✔✔Statements that record the assets, liabilities, capital, revenue
and expenses of a business enterprise.
Folio - correct answer ✔✔A term used to show which journal the entry originated from
Journals - correct answer ✔✔Books of original entry where all original documents are first entered
Ledgers - correct answer ✔✔Books such as General Ledger, Accounts Receivable Ledger, Accounts
Payable Ledger, and Payroll Ledger that record the details from various journals
, liability - correct answer ✔✔An amount owed by a business
Net Income - correct answer ✔✔The total revenue less total expenses
Revenue - correct answer ✔✔An amount earned for performing services or sling goods
Trial Balance - correct answer ✔✔Recording ledger balances in debit and credit columns to determine
that the totals are equal
vendor - correct answer ✔✔A supplier of goods and services
Dr or debit - correct answer ✔✔Represents an increase in an asset and expense accounts and a decrease
in revenue, liability and capital accounts
Cr or Credit - correct answer ✔✔Represents an increase in liability, capital, and revenue accounts and a
decrease in asset and expenses accounts
+ or - - correct answer ✔✔These symbols indicate debit or credit where applocable
(999) - correct answer ✔✔Values appearing parenthesis represent a negative balance or amount
double-entry bookkeeping - correct answer ✔✔the practice of writing every business transaction in two
places
double-entry bookkeeping - correct answer ✔✔Bookkeepers record all transactions in two places so
they can check one list of transactions against the other for accuracy.
revenue - correct answer ✔✔Money that earned by an individual for work he/she has performed
Expense - correct answer ✔✔Money that is paid out by an individual for the various cost of living
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