DIT Question and answers correctly solved 2024 DIT-Bookkeeping Exam Study guide,
6 Ledger accounting and double entry bookkeeping
When should a company adjust its inventory balance? - correct answer When the physical count does not match inventory balance on the books.
What is FICA - cor...
DIT-Bookkeeping Exam Study guide,
6 Ledger accounting and double entry
bookkeeping
When should a company adjust its inventory balance? - correct answer
✔When the physical count does not match inventory balance on the books.
What is FICA - correct answer ✔It is a combination of Social Security, and
Medicare taxes
What test displays previous financials in side-by-side columns, enabling
investors to identify trends, track a company's progress and compare it with
industry rivals? - correct answer ✔A comparative income statement
When you subtract COGS from sales revenue, what do you get in return? -
correct answer ✔Gross Profit
What are some variants of the accounting equation? - correct answer
✔A=L+E
E=A-L
L=A-E
When reading a journal that was generated by the accounting software, what
should you expect to find? - correct answer ✔Date, description account
name, and amount
What is the natural balance of Revenue? - correct answer ✔credit
, What is the natural balance of liabilities? - correct answer ✔credit
What is the natural balance of stockholder's equity? - correct answer ✔Credit
What is the natural balance of assets? - correct answer ✔debit
What is the natural balance of expenses? - correct answer ✔debit
What is the 1st step of the accounting cycle? - correct answer ✔Identify
transactions
What is the 2nd step in the accounting cycle? - correct answer ✔Record
transactions as journal entries
What is the 3rd step in the accounting cycle? - correct answer ✔Post entries
to the general ledger
What is the 4th step in the accounting cycle? - correct answer ✔Prepare an
unadjusted trial balance
What is the 5th step of the accounting cycle - correct answer ✔Look for
reasons for an imbalance
What is the 6th step of the accounting cycle? - correct answer ✔Make
adjustments
What is the 7th step of the accounting cycle? - correct answer ✔Create
financial statements
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