Bookkeeping basics exam - Study guides, Class notes & Summaries

Accounting Principle #1 Economic Entity Assumption* - ANSWER-The business and its financial transactions are separate from the owner's personal financial transactions. Accounting Principle #4 Cost Principle - ANSWER-1) Financial transactions are shown, forever, as the original and historical cost. 2) We do NOT adjust for inflation or the increase or decrease in the value of an item. Accounting Principle #7 Matching Principle* - ANSWER-1) forces us to use the accrual basis of accounti...

BOOKKEEPING BASICS EXAM STUDY GUIDE QUESTIONS AND 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 neg...

Bookkeeping Basics Part 10 Exam Questions and Answers

Quiz Lesson 12 Bookkeeping Basics-Good Business Management Exam

Bookkeeping Basics Part 10 Exam Questions With Solutions 100% Correct Anything a business owns of value, or a resource of value, that has the potential to be transformed into cash. Asset The list of all of the accounts and sub-accounts used to categorize transactions. Chart of accounts The report covering the sources and uses of cash by a business. Statement of cashflows The financial statement that reports a business's assets, liabilities, and equity at a specific point in time. Bal...

Quiz Lesson 12: Bookkeeping Basics-Good Business Management Exam fully solved

Quiz Lesson 12: Bookkeeping Basics-Good Business Management Exam Questions and Answers

BOOKKEEPING BASICS STUDY GUIDE EXAM QUESTIONS WITH CORRECT ANSWERS