Bookkeeping Basic Test #1
Is there usually a debit or credit balance on a contra revenue account?
Explanation:
Net revenue is the outcome of subtracting contra revenue from gross revenue. Contra revenue transactions are recorded in one or more contra revenue accounts, frequently in the negative (as opposed to the credit balance in the typical revenue account).
What are the uses of a purchase order?
Explanation:
Purchase Orders are written instructions from a buyer (your company) to a seller (the vendor). They are crucial tools for buyers since they define requirements and cost and act as a legally binding record of the goods/services ordered.
What are accounting source documents?
Explanation:
The source document is critical to the bookkeeping and accounting process since it establishes the existence of a financial transaction. During an accounting or tax audit, source papers serve as a transaction trail that backs up the accounting journals and general ledger.
What is the definition of a contra revenue account?
Explanation:
Contra revenue is a deduction from a company's reported gross revenue, resulting in net revenue. Contra revenue transactions are recorded in one or more contra revenue accounts, frequently in the negative (as opposed to the credit balance in the typical revenue account).
What is the use of the petty cash reconciliation form?
Explanation:
Verbalizing transactions involving petty cash funds is known as petty cash reconciliation. Its goal is to make sure that monies are being used wisely. It's a necessary internal check for preventing fraud.
Which of the following is a source document for accounting?
Explanation:
A delivery note is a piece of paper with a package of goods. It contains a list of products and their quantities included in the delivery. A delivery note is often called a "dispatch note" or "goods received the note."
Which of the following is not included in the double entry accounting system? (Assume that control accounts aren't included in the double entry.)
Explanation:
Returns inwards book is another name for sales returns book. It's utilized to track the items our consumers return to us. This book's ruling is identical to that of the sales day book.
When is a sale reported on the cash basis of accounting?
Explanation:
Revenue is documented when cash is received from clients, and expenses are recorded when cash is paid to suppliers and employees, according to the cash basis.
In the accounting cycle, which of these comes first?
Explanation:
Identify Transactions: A company's accounting cycle starts with identifying the transactions that make up a bookkeeping event. This could be a purchase, a refund, or a payment to a vendor, among other things. Record Transactions in a Journal: The next step is to record transactions in a journal using journal entries.