Bookkeeping Ch 1-6 Questions and Answers Already Passed
2 views 0 purchase
Course
Bookkeeping Ch 1-6
Institution
Bookkeeping Ch 1-6
Bookkeeping Ch 1-6 Questions and
Answers Already Passed
What is the primary purpose of bookkeeping?
The primary purpose of bookkeeping is to systematically record and organize financial
transactions to provide accurate financial information.
What is an account in bookkeeping?
An accou...
Bookkeeping Ch 1-6 Questions and
Answers Already Passed
What is the primary purpose of bookkeeping?
✔✔ The primary purpose of bookkeeping is to systematically record and organize financial
transactions to provide accurate financial information.
What is an account in bookkeeping?
✔✔ An account is a record used to track financial transactions related to a specific asset,
liability, equity, revenue, or expense.
What is the difference between a debit and a credit?
✔✔ A debit increases assets and expenses while decreasing liabilities and equity, whereas a
credit decreases assets and expenses while increasing liabilities and equity.
What is a trial balance?
✔✔ A trial balance is a statement that lists all the accounts and their balances to ensure that total
debits equal total credits.
1
,What is the purpose of a general ledger?
✔✔ The purpose of a general ledger is to provide a complete record of all financial transactions
in each account.
How do you record a transaction involving a purchase of equipment on credit?
✔✔ You record a debit to the Equipment account and a credit to the Accounts Payable account.
What is an income statement?
✔✔ An income statement summarizes revenues and expenses to show the net income or loss
over a specific period.
What is the purpose of adjusting entries?
✔✔ Adjusting entries are made to update account balances before preparing financial statements,
ensuring that revenues and expenses are recognized in the correct period.
How is the double-entry bookkeeping system different from single-entry bookkeeping?
✔✔ The double-entry system records each transaction in at least two accounts, with debits and
credits balancing out, while the single-entry system records each transaction only once, typically
affecting only one account.
2
, What is the role of a journal in bookkeeping?
✔✔ A journal records all financial transactions in chronological order before they are posted to
the general ledger.
What are assets and how are they classified?
✔✔ Assets are resources owned by a business that provide future economic benefits. They are
classified as current or non-current, depending on their expected use or conversion to cash.
What is the purpose of reconciling bank statements?
✔✔ The purpose of reconciling bank statements is to ensure that the bank’s records match the
company’s records, identifying and correcting any discrepancies.
How do you record the payment of an invoice?
✔✔ You record a debit to the Accounts Payable account and a credit to the Cash or Bank
account.
What is an expense in bookkeeping?
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StellarScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
