EXAM COMPLETE 250 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
What is the role of a bookkeeper? - ANSWER: The position involves the process of
tracking and recording the financial transaction of a business.
As a bookkeeper, you must show what 4 ethical ideas? - ANSWER: -Honesty
-Objectivity
-Confidentiality
-Professionalism
Can you define Accounts Payable? - ANSWER: Money a business OWES to others for
goods or services.
Can you define Accounts Receivable? - ANSWER: Money that is OWED to a business
for providing a good or service.
What are 5 major responsibilities of a bookkeeper? - ANSWER: -Record financial
transactions
-Reconcile bank accounts
-Manage accounts receivable and accounts payable
-Work with tax preparers and assist with tax compliance
-Generate financial statements
What does recording financial transactions mean? - ANSWER: Involves systematically
documenting financial events in a business's accounting system.
What does Reconcile Bank Accounts mean? - ANSWER: Requires comparing and
matching transactions in a business's accounting records with those in the bank
statement to ensure accuracy and to identify any discrepancies.
What does Managing accounts receivable and accounts payable mean? - ANSWER:
entails efficiently tracking and handling the money owed to the business by
customers and the money owed by the business to suppliers and creditors.
Your client's account's receivable is &6,750. What does that mean? - ANSWER: Your
client is OWED %6,750 for services or goods they provided.
What is the Accounting Equation? - ANSWER: Assets = Liabilities + Owner's equity
What are assests? - ANSWER: Anything the business OWNS of value or a resource of
value that has the potential to be transformed into cash.
, What are LIABILITIES? - ANSWER: What the business OWES to others.
What is OWNER'S EQUITY? - ANSWER: Owner's stake in the business, how much they
have invested, or withdrawn.
What is considered the Foundation of the Balance Sheet? - ANSWER: The Accounting
Equation. A = L + OE
What are some examples of Assests? - ANSWER: Cash, accounts receivable,
inventory, investments in other businesses, equipment, intellectual property (Such
as a patent).
What are some examples of Liabilities? - ANSWER: loans, mortgage, payroll, sales tax
owed, credit cards, any other debt.
What is the Balance Sheet? - ANSWER: Shows the relationship between what the
business owns, what it owes, and how much the owners have invested. This shows
the Accounting Equation A = L +OE.
Why categorize transactions? - ANSWER: Understanding how to categorize
transactions accurately allows businesses to track their income, expenses, and
assets, providing valuable insights for decision-making and financial reporting.
What is "REVENUE"? - ANSWER: Represents the income your client earns through
their business operations. It's their GROSS proceeds from sales, whether that's
products, services, rentals, or anything else that bring money into the business.
What are "EXPENSES"? - ANSWER: Represent the COSTS of doing business, such as
labor costs like salaries and employee benefits, operating costs like utilities, rent and
insurance, and other essential expenses like taxes and advertising, or anything else
that keeps their business moving.
An income statement brings what two items to show a client's financial
performance? - ANSWER: Revenue & Expenses. (Revenue - Expenses = Net Income
or Net Loss)
In accounting, how are negative values often times represented/noted? - ANSWER:
By using parenthesis ($6,000).
Your client owns a business mowing lawns. They completed a mow service for a mini
mall and billed the property manager for the service. Which balances change? -
ANSWER: -Assets will increase because of the accounts receivable &
-Revenue will increase as a result of the service income.
What is the cardinal rule of bookkeeping? - ANSWER: Debits and Credits need to be
EQUAL.