Bookkeeping Class by Intuit, BUSINESS
STUDIES, Bookkeeping, Chapter 15-
Book Keeping, Bookkeeping,
Bookkeeping Basics, Double Entry
Bookkeeping
Bookkeepers typically... - correct answer ✔Record financial transactions,
reconcile bank accounts, manage accounts receivable, manage accounts
payable, work with tax preparers and assist with tax compliance, and generate
financial statements.
As a bookkeeper what would Honesty mean? - correct answer ✔Reporting
financial data accordingly and timley, owning up to and trying ti fix any
mistakes, and being open and transparent with clients about their business.
As a bookkeeper what would Objectivity mean? - correct answer ✔Not taking
any jobs/ clients that could pose conflict of interest, not allowing outside
parties to influence findings, not letting personal bias get in the way of your
performance.
As a bookkeeper what would Confidentiality mean? - correct answer ✔Not
discussing business details outside of the job and NEVER using inside
information for personal gain.
As a bookkeeper what would Profesionalism mean? - correct answer ✔Being
considerate of clients needs/ time, avoiding personal/profesional activities that
could bring shame to profession/business, maintaining proper credentials, and
keeping skills through continuing education.
What is the Accounting Equation - correct answer ✔Assets=Liability+Equity
,What are some examples of a Liability? - correct answer ✔Morgage,(money
owed to a lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it
back)
Payroll or sales tax owed to a government-(most business will owe one or
more types of taxes to federal, state, or local governments)
What are some examples of an Asset? - correct answer ✔Accounts
Receivable-(money owed to the business by customers)
Investments in other companies-( potentially sell for cash)
What are some examples of Equity? - correct answer ✔Money invested into
the company by one or more owners
Double-Entry Accounting - correct answer ✔A common way to record
transactions records which accounts increase and decrease. Recorded in
debit and credit columns. (Totals HAVE to be balanced)
What side can debits and credits be found on? - correct answer ✔Debits are
on the left
Credits are on the right
How do you know if something is a Debit or a Credit? - correct answer ✔Ask
yourself, What kind of account are we looking at? and Is the balance
increasing or decreasing?
What are the 5 account types? - correct answer ✔Assets
Liability
, Equity
Revenue
Expenses
What is the expanded Accounting Equation? - correct answer
✔{Assets=Liabilities+Equity}+[Revenues-Expences]
{Balance Sheet} [Income statement]
{Assets+Expenses}=[Liabilities+Equity+Revenue]
How do Debits and Credits work in an ASSETS Account? - correct answer
✔Debits are an increase and Credits are a decrease
How do Debits and Credits work in a LIABILITIES Acount? - correct answer
✔Debits are a decrease and Credits are an increase
How do Debits and Credits work in an EQUITY Acount? - correct answer
✔Debits are a decrease and Credits are an increase
What does the acronym DEALER mean? - correct answer ✔to increase an
account you will Debit and Expense or Asset account but credit a Liability,
Equity, or Revenue account.
How would you record a $100 cash payment to the tractor store? - correct
answer ✔We would record it as a CREDIT because it's DECREASING an
ASSET (in this case cash)
How are credits used in double entry - correct answer ✔Decrease in assets/
expenses. Increase liabilities/ equity
STUDIES, Bookkeeping, Chapter 15-
Book Keeping, Bookkeeping,
Bookkeeping Basics, Double Entry
Bookkeeping
Bookkeepers typically... - correct answer ✔Record financial transactions,
reconcile bank accounts, manage accounts receivable, manage accounts
payable, work with tax preparers and assist with tax compliance, and generate
financial statements.
As a bookkeeper what would Honesty mean? - correct answer ✔Reporting
financial data accordingly and timley, owning up to and trying ti fix any
mistakes, and being open and transparent with clients about their business.
As a bookkeeper what would Objectivity mean? - correct answer ✔Not taking
any jobs/ clients that could pose conflict of interest, not allowing outside
parties to influence findings, not letting personal bias get in the way of your
performance.
As a bookkeeper what would Confidentiality mean? - correct answer ✔Not
discussing business details outside of the job and NEVER using inside
information for personal gain.
As a bookkeeper what would Profesionalism mean? - correct answer ✔Being
considerate of clients needs/ time, avoiding personal/profesional activities that
could bring shame to profession/business, maintaining proper credentials, and
keeping skills through continuing education.
What is the Accounting Equation - correct answer ✔Assets=Liability+Equity
,What are some examples of a Liability? - correct answer ✔Morgage,(money
owed to a lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it
back)
Payroll or sales tax owed to a government-(most business will owe one or
more types of taxes to federal, state, or local governments)
What are some examples of an Asset? - correct answer ✔Accounts
Receivable-(money owed to the business by customers)
Investments in other companies-( potentially sell for cash)
What are some examples of Equity? - correct answer ✔Money invested into
the company by one or more owners
Double-Entry Accounting - correct answer ✔A common way to record
transactions records which accounts increase and decrease. Recorded in
debit and credit columns. (Totals HAVE to be balanced)
What side can debits and credits be found on? - correct answer ✔Debits are
on the left
Credits are on the right
How do you know if something is a Debit or a Credit? - correct answer ✔Ask
yourself, What kind of account are we looking at? and Is the balance
increasing or decreasing?
What are the 5 account types? - correct answer ✔Assets
Liability
, Equity
Revenue
Expenses
What is the expanded Accounting Equation? - correct answer
✔{Assets=Liabilities+Equity}+[Revenues-Expences]
{Balance Sheet} [Income statement]
{Assets+Expenses}=[Liabilities+Equity+Revenue]
How do Debits and Credits work in an ASSETS Account? - correct answer
✔Debits are an increase and Credits are a decrease
How do Debits and Credits work in a LIABILITIES Acount? - correct answer
✔Debits are a decrease and Credits are an increase
How do Debits and Credits work in an EQUITY Acount? - correct answer
✔Debits are a decrease and Credits are an increase
What does the acronym DEALER mean? - correct answer ✔to increase an
account you will Debit and Expense or Asset account but credit a Liability,
Equity, or Revenue account.
How would you record a $100 cash payment to the tractor store? - correct
answer ✔We would record it as a CREDIT because it's DECREASING an
ASSET (in this case cash)
How are credits used in double entry - correct answer ✔Decrease in assets/
expenses. Increase liabilities/ equity
