Exam (elaborations)
Bookkeeping Basics Exam Questions and Answers
- Course
- Institution
Bookkeeping Basics Exam Questions and Answers
[Show more]
Seller
Follow
millyphilip
Reviews received
Content preview
Bookkeeping Basics Exam Questionsand Answers
What is the difference between accounting and bookkeeping? - Answer -A bookkeeper's
job is to record transactions in the books of an entity. An accountant's job is to use the
information given by bookkeepers to prepare financial statements.
What is double-entry bookkeeping? and why is it used? - Answer -Double-entry
bookkeeping is a bookkeeping system that records each transaction twice. This is by
displaying a positive and negative financial effect. This means that positives should
equal negatives in the end making it far easier to identify any errors.
What is a ledger? - Answer -A ledger (usually referred to as the general or nominal
ledger) is a book or computer system that contains a number of accounts, each having
a 'debit' and a 'credit' side, which are used to record each transaction.
Why is it important for an accountant to understand bookkeeping? - Answer -The
accounts in the ledger are used to create the financial statements. The bookkeeping
system gives a more detailed overview of how the figures on the financial statements
are made. The accountant will need to look at and understand the books in order to
check for and most likely make adjustments.
What is the 'dual aspect concept'? - Answer -The dual aspect concept is that each
transaction has 2 effects, as a transaction means that there is a loss from somewhere
(one account) in order for there to be a gain elsewhere (another account). Double-entry
bookkeeping uses this concept by recording the movement of the transaction.
What determines whether an account should be debited or credited in a transaction? -
Answer -The account credited is the account where the money comes from. The
account that money goes to is then debited.
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R145,10. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
85443 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now