Bookkeeping Basics Questions and
Answers Rated A+
What is the role of a bookkeeper in a business?
A bookkeeper maintains accurate financial records, processes transactions, and ensures that
the company's accounts are up to date.
What is a source document in bookkeeping?
A source docum...
✔✔ A bookkeeper maintains accurate financial records, processes transactions, and ensures that
the company's accounts are up to date.
What is a source document in bookkeeping?
✔✔ A source document is a physical or electronic record that provides evidence of a financial
transaction, such as invoices, receipts, or bank statements.
How does a trial balance help in bookkeeping?
✔✔ A trial balance helps in bookkeeping by providing a preliminary check to ensure that the
total debits equal total credits, which helps identify errors in the accounting records.
What is the difference between a cash basis and an accrual basis of accounting?
✔✔ The cash basis of accounting recognizes transactions only when cash changes hands, while
the accrual basis recognizes transactions when they occur, regardless of cash flow.
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, What is a ledger account?
✔✔ A ledger account is a detailed record of all transactions related to a specific account, such as
cash or accounts payable.
What is meant by "closing the books"?
✔✔ Closing the books refers to the process of finalizing all financial records for an accounting
period, including making adjusting entries and preparing financial statements.
What is a balance sheet's purpose?
✔✔ A balance sheet provides a snapshot of a company’s financial position at a specific date,
listing its assets, liabilities, and equity to show financial stability.
What is the purpose of maintaining accurate financial records?
✔✔ Maintaining accurate financial records ensures reliable financial reporting, compliance with
regulations, and effective management of business resources.
What is the role of accounts receivable?
✔✔ Accounts receivable represents money that customers owe to the business for goods or
services provided on credit.
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