Bookkeeping Basic Test #2
Which entity's transactions are recorded in bookkeeping?
Explanation:
Bookkeeping is the process of recording financial transactions in businesses and other organizations and is a part of the accounting process.
Is this statement true or false? For the following transaction, this is an accurate journal entry: A customer makes a $250.00 payment on their account. Credit – Accounts Payable – $250.00 Debit – Income – $250.00
The correct answer:
False
What phrase is used to describe the usage of debits and credits to record a transaction in accounting records?
Explanation:
Transactions are recorded in the double-entry system as debits and credits.
Which of the following accounts would be considered a debit?
Please select 4 correct answers
Explanation:
Assets, expenses, and losses are examples of accounts with a debit balance. Cash, accounts receivable, prepaid costs, fixed assets (asset) account, wages (expense), and loss on sale of assets (loss) accounts are examples of these accounts.
What is the term for the amount of time it takes to produce a set of financial statements?
Explanation:
A month is commonly believed to be an accounting period. A few companies collect financial data in four-week increments, resulting in 13 accounting periods per year. Regardless of the accounting period chosen, it must be applied consistently over time.
Individual what are accounting records made up of?
Explanation:
Asset and liability records, monetary transactions, ledgers, journals, and any supporting documents such as checks and invoices are all included in accounting records.
To reverse a payment, you'd do the:
Explanation:
A transaction should post to an account in the general ledger once it is logged as a journal entry. The general ledger shows how all accounting activities are broken down by account. It allows a bookkeeper to keep track of each account's financial situation and status.
Which of the following statements is not a financial statement?
Explanation:
A cash book is a separate ledger that records monetary transactions, whereas a cash account is a general ledger account. A cash book acts as a journal and a ledger, whereas a cash account is organized similarly to a ledger.
Which of the following errors have an impact on the trial balance?
Explanation:
One-sided errors are those that have an impact on the trial balance agreement. These errors only affect one account and one side of the account, i.e., the debit or credit side. One-sided errors include partial omissions, recording transactions with incorrect casting, and incorrect publishing.