BBK99E1 BASIC BOOKKEEPING LEVEL 1 FINAL
EXAM PRACTICAL ANSWERS 2026
COMPREHENSIVE REVIEW GUIDE
◉ The Accounting Equation. Answer: Assests= Liability + Equity
◉ Assets. Answer: Everything the company owns (cash, accounts
receivable, equipment, buildings, etc)
◉ Liability. Answer: Everything the company owes (loans, credit
cards, rent, accountants payable for vendors)
◉ Equity. Answer: Money invested in the company by one or more
owners of the buisness
◉ Double-entry Accounting. Answer: a way of bookkeeping that
tracks which accounts increase and which accounts decrease for a
given transaction. Increases and decreases are recorded as either
debits or credits depending on the TYPE of ACCOUNT.
**Debits and Credits must always Balance
, ◉ Debit. Answer: an accounting entry that either increases an assets
or expense account, or decreases a liability, revenue, or equity
account.
It is positioned to the left in an accounting entry
◉ Credit. Answer: an accounting entry that either increases a
liability, revenue, or equity account, or decreases an asset of expense
account.
It is positioned to the right in an accounting entry.
◉ Debit Accounts. Answer: accounts that normally contain a debit
balance which will increase in amount when a debit is added to
them and decrease in amount when a credit is added to them.
Debit Accounts include expenses, assets, and dividends
◉ Formula to Determine the Account Balance of a DEBIT account:.
Answer: Account balance=total debits - total credits
◉ Credit Accounts. Answer: all accounts that normally contain a
credit balance and will increase in amount when a credit is added to
them ad decrease in amount when a debit is added to them.
EXAM PRACTICAL ANSWERS 2026
COMPREHENSIVE REVIEW GUIDE
◉ The Accounting Equation. Answer: Assests= Liability + Equity
◉ Assets. Answer: Everything the company owns (cash, accounts
receivable, equipment, buildings, etc)
◉ Liability. Answer: Everything the company owes (loans, credit
cards, rent, accountants payable for vendors)
◉ Equity. Answer: Money invested in the company by one or more
owners of the buisness
◉ Double-entry Accounting. Answer: a way of bookkeeping that
tracks which accounts increase and which accounts decrease for a
given transaction. Increases and decreases are recorded as either
debits or credits depending on the TYPE of ACCOUNT.
**Debits and Credits must always Balance
, ◉ Debit. Answer: an accounting entry that either increases an assets
or expense account, or decreases a liability, revenue, or equity
account.
It is positioned to the left in an accounting entry
◉ Credit. Answer: an accounting entry that either increases a
liability, revenue, or equity account, or decreases an asset of expense
account.
It is positioned to the right in an accounting entry.
◉ Debit Accounts. Answer: accounts that normally contain a debit
balance which will increase in amount when a debit is added to
them and decrease in amount when a credit is added to them.
Debit Accounts include expenses, assets, and dividends
◉ Formula to Determine the Account Balance of a DEBIT account:.
Answer: Account balance=total debits - total credits
◉ Credit Accounts. Answer: all accounts that normally contain a
credit balance and will increase in amount when a credit is added to
them ad decrease in amount when a debit is added to them.
