Bookkeeping deals with identifying and recording financial transactions only. Accounting refers to the process of summarising, interpreting and communicating the financial data of an organization. Decision making. Data provided by bookkeeping is not sufficient for decision making.
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- Format: Multiple Choice Question
- Questions: 10
- Passing Score: 8/10 or 80%
- Language: English
Here are the questions and answers :
Using the cash basis of accounting a sale is recorded when?
When the goods are sent to the customer
The sale is made to the customer
When the cash is received from the customer
None of the above
What is the petty cash reconciliation form used for?
To reconcile petty cash and paid vouchers to the authorized petty cash float.
To reconcile the petty cash to the bank statement
To reconcile the petty cash book to the cash book
All of the above
Which of these comes first in the accounting cycle?
Identify the missing line item in the trading and profit and loss account.
Net Profit =4,500
Sales = ?
Gross Profit = 16,500
Expenses = 12,000
Cost of Goods Sold = 13,500
The income statement shows which of the following?
Assets and liabilities
Income and expenses
Receipts and payments
All of the above
Examples of bookkeeping forms are:
General Ledger, General Journal
General Journal, General Ledger, Bank Reconciliation
Just the General Journal
This is the art of recording, classifying, summarizing in a significant manner and in terms of money, transactions and events, which are in part, at least, of financial character and interpreting the results thereof.
This accounting fundamental concept allows the users to obtain timely information to serve as a basis on making decisions about future activities.
Stable monetary unit concept
He makes investment in the hope of making profit.
After each accounting period, data recorded are summarized through financial statements.