BBK99E1 BASIC BOOKKEEPING FINAL
PAPER UPDATED COMPLETE QUESTIONS
AND CORRECT ANSWERS BUNDLED
REVIEW GUIDE
●● journal
Answer: In a manual system, this is defined as a book of original entry.
It is used less in a computerised system.
●● journal entry
Answer: This describes the debit and credit amounts and accounts that
get recorded in the general journal. The amounts will be posted to the
general ledger accounts.
●● chart of accounts
Answer: This is a listing of the general ledger accounts. However, it
does not contain amounts.
●● debit
Answer: This term indicates the left side of a general ledger account and
it is the normal balance for asset, expense, and loss accounts.
●● credit
,Answer: This term indicates the right side of a general ledger account
and it is the normal balance for liability, stockholders' equity, revenue,
and gain accounts.
●● double entry
Answer: Under this system every transaction will involve at least two
general ledger accounts. It also requires that the total of the debit
amounts be equal to the total of the credit amounts.
●● bookkeeping equation
(or)
accounting equation
Answer: This mathematical expression is assets = liabilities +
stockholders' (or owner's) equity and should always be in balance when
the double-entry system is used.
●● account
Answer: Two or more of these general ledger records are required for
every transaction.
●● trial balance
Answer: This internal report lists the balances in each of the general
ledger accounts in either a debit or credit column. Its purpose is to con
rm that the debits are equal to the credits.
, ●● adjusting entry
Answer: This type of journal entry is recorded at the end of an
accounting period in order to accrue and/or defer expenses and revenues.
(Each will include a balance sheet account and an income statement
account.)
●● balance sheet accounts
(or)
permanent accounts
(or)
real accounts
Answer: This group of general ledger accounts will not be closed at the
end of an accounting period.
●● income statement accounts
(or)
temporary accounts
(or)
nominal accounts
Answer: This group of general ledger accounts will be closed at the end
of each accounting period.
PAPER UPDATED COMPLETE QUESTIONS
AND CORRECT ANSWERS BUNDLED
REVIEW GUIDE
●● journal
Answer: In a manual system, this is defined as a book of original entry.
It is used less in a computerised system.
●● journal entry
Answer: This describes the debit and credit amounts and accounts that
get recorded in the general journal. The amounts will be posted to the
general ledger accounts.
●● chart of accounts
Answer: This is a listing of the general ledger accounts. However, it
does not contain amounts.
●● debit
Answer: This term indicates the left side of a general ledger account and
it is the normal balance for asset, expense, and loss accounts.
●● credit
,Answer: This term indicates the right side of a general ledger account
and it is the normal balance for liability, stockholders' equity, revenue,
and gain accounts.
●● double entry
Answer: Under this system every transaction will involve at least two
general ledger accounts. It also requires that the total of the debit
amounts be equal to the total of the credit amounts.
●● bookkeeping equation
(or)
accounting equation
Answer: This mathematical expression is assets = liabilities +
stockholders' (or owner's) equity and should always be in balance when
the double-entry system is used.
●● account
Answer: Two or more of these general ledger records are required for
every transaction.
●● trial balance
Answer: This internal report lists the balances in each of the general
ledger accounts in either a debit or credit column. Its purpose is to con
rm that the debits are equal to the credits.
, ●● adjusting entry
Answer: This type of journal entry is recorded at the end of an
accounting period in order to accrue and/or defer expenses and revenues.
(Each will include a balance sheet account and an income statement
account.)
●● balance sheet accounts
(or)
permanent accounts
(or)
real accounts
Answer: This group of general ledger accounts will not be closed at the
end of an accounting period.
●● income statement accounts
(or)
temporary accounts
(or)
nominal accounts
Answer: This group of general ledger accounts will be closed at the end
of each accounting period.
