BBK99E1 BASIC BOOKKEEPING UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPREHENSIVE STUDY GUIDE
●● which is NOT a key duty of a bookkeeper?
Answer: set compensation for employees
●● what is a key advantage of working as a employee bookkeeper for a
small company?
Answer: you usually have a great opportunity to gain breadth experience
as a bookkeeper
●● what is the potential risk of working as a freelance bookkeeper?
Answer: there is no assurance that your customers will pay your bills
●● As a bookkeeper, you are responsible for financial reporting. Why is
financial reporting important?
Answer: It tells a business how it is doing and whether it is profitable.
●● Which of the following is NOT an element of determining cash
flow?
Answer: Adopting a retention policy for all records
, ●● Although bookkeeping is largely computerized today, why is it still
important to be familiar with the manual bookkeeping process?
Answer: It is easier to explain and understand that way.Computerized
programs are a "black box" and it is difficult to understand and see how
the underlying transaction are recorded and processed.
●● In the context of online bookkeeping software, what does the term
"black box" refer to?
Answer: Not being able to see the specific steps that produce the
journals, general ledger, and financial statements You can only see those
specific steps when you use manual bookkeeping.
●● What is the primary purpose of Generally Accepted Accounting
Principles (GAAP)?
Answer: Improvement of the reporting of business information by
making it more reliable, relevant, and comparable
●● Which of the following is not a permanent account?
Answer: revenues
●● How do you express the accounting equation?
Answer: assets = liabilities plus equity
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPREHENSIVE STUDY GUIDE
●● which is NOT a key duty of a bookkeeper?
Answer: set compensation for employees
●● what is a key advantage of working as a employee bookkeeper for a
small company?
Answer: you usually have a great opportunity to gain breadth experience
as a bookkeeper
●● what is the potential risk of working as a freelance bookkeeper?
Answer: there is no assurance that your customers will pay your bills
●● As a bookkeeper, you are responsible for financial reporting. Why is
financial reporting important?
Answer: It tells a business how it is doing and whether it is profitable.
●● Which of the following is NOT an element of determining cash
flow?
Answer: Adopting a retention policy for all records
, ●● Although bookkeeping is largely computerized today, why is it still
important to be familiar with the manual bookkeeping process?
Answer: It is easier to explain and understand that way.Computerized
programs are a "black box" and it is difficult to understand and see how
the underlying transaction are recorded and processed.
●● In the context of online bookkeeping software, what does the term
"black box" refer to?
Answer: Not being able to see the specific steps that produce the
journals, general ledger, and financial statements You can only see those
specific steps when you use manual bookkeeping.
●● What is the primary purpose of Generally Accepted Accounting
Principles (GAAP)?
Answer: Improvement of the reporting of business information by
making it more reliable, relevant, and comparable
●● Which of the following is not a permanent account?
Answer: revenues
●● How do you express the accounting equation?
Answer: assets = liabilities plus equity
