FREE Accounting Technician Financial Reporting & Bookkeeping Questions and Answers
Why is bank reconciliation important in bookkeeping?
Bank reconciliation helps ensure that a company's financial records match its bank statements, identifying discrepancies or errors.
What is double-entry bookkeeping?
Double-entry bookkeeping requires recording each financial transaction in two accounts, ensuring that debits and credits remain balanced.
Which financial document lists a company's assets, liabilities, and equity at a specific point in time?
The balance sheet provides a snapshot of a company’s financial position by listing its assets, liabilities, and owner’s equity.
What is the purpose of a trial balance in bookkeeping?
A trial balance ensures that total debits and credits are equal, detecting errors in financial records before preparing statements.
Which financial statement shows a company’s profitability over a specific period?
The income statement presents a company's revenues, expenses, and net profit or loss for a given period.
What is the primary purpose of financial reporting?
Financial reporting provides stakeholders with accurate and transparent financial information to support decision-making.