Bookkeeping basics Question and answers verified to pass 2024
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Course
Bookkeeping
Institution
Bookkeeping
Bookkeeping basics Question and answers verified to pass 2024 Bookkeeping basics, Bookkeeping Fundamentals, Accounting Coach: Bookkeeping
What does a bookkeeper typically do? - correct answer Bookkeepers have many responsibilities which include, record financial transactions, reconcile bank a...
Bookkeeping basics, Bookkeeping
Fundamentals, Accounting Coach:
Bookkeeping
What does a bookkeeper typically do? - correct answer ✔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 - correct answer ✔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 - correct answer ✔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 - correct answer ✔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.
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,Professionalism - correct answer ✔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 - correct answer ✔Assets are what the company owns or controls
and expects to gain benefit from. The simplest example is cash.
Liability - correct answer ✔Liability are what the company owes to others.
Equity - correct answer ✔Equity is the owner's stake in the company. It's
how much they've invested or withdrawn.
Double-entry accounting - correct answer ✔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.
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 - correct answer ✔D) Credit Cash to
decrease the account
We record this as a credit because it is decreasing an asset account (in this
case, cash)
Question 1
Which two entries would need to be recorded to log Lou receiving a $100
payment for a weeding job he completed for Ms. Rosa?
Date July 10
Description Debit Credit
Ms. Rosa
Cash
, Lawncare Revenue
A) $100 Credit in Cash
B) $100 Credit in Lawncare Revenue
Correct
Correct. We need to:
debit the cash account $100
credit Lawncare Revenue $100
C)$100 Debit in Lawncare Revenue
D) $100 Debit in Cash - correct answer ✔B) $100 Credit in Lawncare
Revenue
Correct
Correct. We need to:
debit the cash account $100
credit Lawncare Revenue $100
D)$100 Debit in cash
Correct. We need to:
debit the cash account $100
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