Exam (elaborations)
Bookkeeping Questions and Answers 2024
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Exam of 8 pages for the course Bookkeeping at Bookkeeping (Bookkeeping)
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BookkeepingBookkeeper - answerA person in charge of keeping the financial records of an
organization
Bookkeeping - answerThe process of recording business transactions
Service business - answerA business that performs a service in exchange for payment
Accounting - answerThe art of recording, classifying, and summarizing in a significant
manner and in terms of money, transactions and events which are of a financial
character, and interpreting the results
Account title - answerThe name given to an account
Transaction - answerAny activity that occurs in the business that changes part of the
accounting equation (assets, liabilities, or owner's equity)
Account balance - answerThe amount in an account OR The difference between the
increases and decreases (debits and credits) in an account
Asset - answerAnything of value owned and used in a business
Liability - answerAnything owed by a business
Owner's equity - answerThe value remaining in the business when liabilities have been
deducted from assets - Total Assets - Total Liabilities. The amount of claim an owner
has to the assets of a business
Account payable - answerA liability account recording that money is or will be owed
Accounting equation - answerAssets = Liabilities + Owner's Equity
Creditor - answerAn entity or person who has lent money
Debtor - answerAn entity or person who owes money
General Journal - answerA two-column journal is a book in which original transactions
of the business are first recorded; it's sometimes called the book of original entry.
, General Ledger - answerA company's set of numbered accounts for its accounting
records; it provides a complete record of financial transactions over the life of the
company
Journal sides - answerMust always equal, left side is assets, right side is liabilities and
owner's equity
Chart of Accounts - answera list of account titles in the order in which they can be found
in the ledger.
Opening a ledger account - answerpreparing a page in the ledger for use.
Posting from journal to ledger - answerthe act of transferring the entries from the journal
to its ledger account.
Original entry - answerThe transaction which is the first when starting a business
Debit - answerAn entry recording an amount, listed on the left-hand side or column of
an account
Credit - answerAn entry recording an amount, listed on the right-hand side or column of
an account
Balance side, Account (Bal) - answerThe difference between the total debits and total
credits in an account; all accounts have a "normal" balance
Contra Account - answerAn account that shows the estimated decrease in value of the
account to which it relates; also referred to as a "minus" or "valuation" account
Permanent/Real Account - answerBalance sheet accounts that retain an account
balance from one accounting period to the next, i.e. assets, liabilities, owner's equity
Temporary/Nominal Account - answerIncome statement accounts that are intended to
accumulate data for one accounting period only; their account balances are periodically
transferred to the Owner's Equity account
T-Account - answerA tool that's used to help understand individual ledger accounts and
the effects of each transaction; it is a way to organize and summarize transactions in an
individual ledger
Chart of Accounts - answerA listing of the names of the accounts that a company has
identified and made available for recording transactions in its general ledger
Division - answerA method of categorizing accounts for easier reference
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