NJ CALA FInance question n answers 2023/2024

NJ CALA Finance Cash Basis Accounting - correct answer Keeping records that shows only income actually received during a fiscal period and only expenses paid during a fiscal year. *Record income when cash or check is received *Record expense when check is written Accrual Basis Accounting - correct answer Keeping records that show all income earned during a fiscal period even though it isn't received yet and all expenses incurred during a fiscal period even though the expenses are not yet paid *Record income when a bill is written *Record expense when an order is placed Double Entry Accounting - correct answer Recording of a debit and credit for each transaction **Debits must always equal credits** Debits - correct answer An entry made on the left side of the account Credits - correct answer An entry made on the right side of the account Journals - correct answer The organization's "books" where transactions are first recorded before posting to the general ledger. 5 types of journals: -Cash receipt journal -Cash disbursement journal -Account receivable journal -Account payable journal -General journal (recording transactions that don't fit in to the above 4 categories)