NASCLA Contractos Guide to Business,
Law and Project Management Financial
Section
Bookkeeping - CORRECT ANSWER-Involves the accurate recording of all
financial transactions that occur in the business. Financial Statements are
derived from this information
The Accounting Cycle - CORRECT ANSWER-1) Classifying and recording
Transactions.
2) Posting transactions.
3) Preparing a trial balance.
4) Preparing an adjusted trial balance.
5) Preparing financial statements.
6) Analyzing financial statements.
Transaction - CORRECT ANSWER-Is an event that either increases or
decreases an account balance.
Source Document - CORRECT ANSWER-Is the proof that a transaction took
place.
Examples of Source Documents - CORRECT ANSWER-Cash Receipts, Credit
card receipts, customer invoices, purchase orders, materials invoices, deposit
slips, time sheets
Journals - CORRECT ANSWER-Daily transactions are recorded in a set of
books called..
Typical Journals that companies keep include - CORRECT ANSWER-Cash
Receipts and Sales Journal, Purchases Journal, Cash Disbursements journal,
Payroll journal, General journal
Cash Receipts and Sales Journal - CORRECT ANSWER-is used when cash
comes in or a sale is charged to a customer.
, Purchases Journal - CORRECT ANSWER-Tracks all purchases made by the
company.
Cash Disbursements Journal - CORRECT ANSWER-Is used when cash is paid
out, examples of this would be Transactions such as loan payments, and
payments on vendor invoices are recorded here
Payroll Journal - CORRECT ANSWER-Is used to record a summary of payroll
details such as salaries and wages, deductions, and employer contributions.
General Journal - CORRECT ANSWER-Used for non cash transactions
Posting - CORRECT ANSWER-Is the process of transferring the transactions
recorded in the journals to the appropriate accounts.
Account - CORRECT ANSWER-Is a register of value
Examples: Asset, Liability, Equity, Income, Expense
Most companies use 5 Basic types of accounts which are.. - CORRECT
ANSWER-Asset, Liability, Equity, Income, and Expense.
Chart Of Accounts - CORRECT ANSWER-Is a NUMBERING SYSTEM that
organizes these account types
EXAMPLE:
1000-1999: Assets
2000-2999: Liabilities
3000-3999: Equity
4000-4999: Revenue
5000-5999: Cost Of Goods Sold
6000-6999: Expenses
7000-7999: Other Revenue (i.e., interest income)
8000-8999: Other Expenses (i.e., income taxes)
Side note* Theses accounts should be located in the general ledger
Law and Project Management Financial
Section
Bookkeeping - CORRECT ANSWER-Involves the accurate recording of all
financial transactions that occur in the business. Financial Statements are
derived from this information
The Accounting Cycle - CORRECT ANSWER-1) Classifying and recording
Transactions.
2) Posting transactions.
3) Preparing a trial balance.
4) Preparing an adjusted trial balance.
5) Preparing financial statements.
6) Analyzing financial statements.
Transaction - CORRECT ANSWER-Is an event that either increases or
decreases an account balance.
Source Document - CORRECT ANSWER-Is the proof that a transaction took
place.
Examples of Source Documents - CORRECT ANSWER-Cash Receipts, Credit
card receipts, customer invoices, purchase orders, materials invoices, deposit
slips, time sheets
Journals - CORRECT ANSWER-Daily transactions are recorded in a set of
books called..
Typical Journals that companies keep include - CORRECT ANSWER-Cash
Receipts and Sales Journal, Purchases Journal, Cash Disbursements journal,
Payroll journal, General journal
Cash Receipts and Sales Journal - CORRECT ANSWER-is used when cash
comes in or a sale is charged to a customer.
, Purchases Journal - CORRECT ANSWER-Tracks all purchases made by the
company.
Cash Disbursements Journal - CORRECT ANSWER-Is used when cash is paid
out, examples of this would be Transactions such as loan payments, and
payments on vendor invoices are recorded here
Payroll Journal - CORRECT ANSWER-Is used to record a summary of payroll
details such as salaries and wages, deductions, and employer contributions.
General Journal - CORRECT ANSWER-Used for non cash transactions
Posting - CORRECT ANSWER-Is the process of transferring the transactions
recorded in the journals to the appropriate accounts.
Account - CORRECT ANSWER-Is a register of value
Examples: Asset, Liability, Equity, Income, Expense
Most companies use 5 Basic types of accounts which are.. - CORRECT
ANSWER-Asset, Liability, Equity, Income, and Expense.
Chart Of Accounts - CORRECT ANSWER-Is a NUMBERING SYSTEM that
organizes these account types
EXAMPLE:
1000-1999: Assets
2000-2999: Liabilities
3000-3999: Equity
4000-4999: Revenue
5000-5999: Cost Of Goods Sold
6000-6999: Expenses
7000-7999: Other Revenue (i.e., interest income)
8000-8999: Other Expenses (i.e., income taxes)
Side note* Theses accounts should be located in the general ledger
