BOOKKEEPING EXAM PREP 2026 STUDY GUIDE QUESTIONS AND ANSWERS

BOOKKEEPING EXAM PREP 2026 STUDY GUIDE
QUESTIONS AND ANSWERS

◉ What is DEALER. Answer: Dividends + Expenses + Assets =
Liabilities + Owner's Equity (beginning) + Revenue


◉ What's is the accounting Equation? Answer: Assets = Liabilities +
Equity


◉ Profit and Loss statement. Shows the company's revenues and
expenses during a particular period. Answer: The Income Statement


◉ A financial statement that reports a company's assets, liabilities, and
equity at a specific point in time. Answer: The Balance Sheet


◉ Reports the changes in company equity, from the opening balance to
the end of the period balance.. Answer: The Statement of Equity


◉ Reports the sources and uses of cash by a business. Answer: The
Statement of Cash Flow


◉ Accounting Cycle. Answer: 1. Analyze and record transactions
2. Post transactions to ledger

, 3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
5. Prepare adjusted trial balance
6. Prepare financial statements


◉ If customers pays at the time of sale you must enter it as a. Answer:
Sales Receipt


◉ If customers does not pay at the time of sale you must enter it as a.
Answer: Invoice


◉ Once and customer has paid an invoice it goes to. Answer: Receive
payment


◉ Receive payment and sales receipt are followed by. Answer: Bank
deposit


◉ Step 4 of The Accounting Cycle: Preparing adjusted entries includes.
Answer: Deferrals, Accruals, Missing Transactions, and Tax
Adjustments


◉ Removing transactions that belong to a different period. Answer:
Deferral