Bookkeeping basics - Study guides, Class notes & Summaries

The Accounting Principle - ANSWER-You can't mix business and personal assets or expenses. Accounting Equation - ANSWER-Assets = Liabilities + Owner's Equity or Assets - Liabilities = Owner's Equity Expanded Accounting Equation - ANSWER-Assets = Liabilities + Equity + Revenue - Expenses - Dividends The Five Account Types - ANSWER-Assets, Liabilities, Equity, Revenue, Expenses Normal balance of the five account types - ANSWER-Assets- Normal Dr balance Expenses- Normal Dr balance...

Bookkeeping Basics Questions With Solutions 100% Correct What is the difference between accounting and bookkeeping? 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? Double-entry bookkeeping is a bookkeeping system that records each transaction twice. This is by displaying a positive and negative financial ef...

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 - Accounting Cycle (Part 2) Assessment questions and answers rated A+ by experts 2024/2025

Bookkeeping Basics - Accounting Cycle (Part 1) Assessment questions and answers rated A+ by experts 2024/2025

BOOKKEEPING BASICS 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 po...