1|Page
BUS 100 Exam #5 Study Guide Latest Update Exam | Questions and
Verified Answers | 100% Correct | Grade A +
How is the job of the bookkeeper different from an accountant?
- ANSWER Bookeeper; the record of buisness transactions, is a
basic part of financial recording
Accountant; classify and summarize financial data provided by
bookkeepers, interpret the data, report the information to
management
What's the purpose of accounting journals and of a ledger? -
ANSWER Journal; bookkeepers then record financial data from
the original transaction documents into a record book or
computer program
Ledger; bookkeepers use a specialized accounting book or
computer program
Why does a bookkeeper prepare a trial balance? - ANSWER to
ensure the figures in the account ledgers are correct and
balanced.
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What are the key steps in preparing an income statement? -
ANSWER summarizes revenues, cost of goods sold, and
expenses (including taxes) for a specific period and highlights
the total profit or loss the firm experienced during that period
Demand deposit - ANSWER individuals and businesses that
deposit money in a checking account can write personal checks
M-1 - ANSWER Money that can be accessed quickly and easily
(coins and paper money, checks, traveler's checks, etc.)
M-2 - ANSWER money included in M-1 plus money that may
take a little more time to obtain (savings accounts, money
market accounts, mutual funds, certificates of deposit, etc.)
M-3 - ANSWER M-2 plus big deposits like institutional money
market funds
Pension funds - ANSWER amounts of money put aside by
corporations, nonprofit organizations, or unions to cover part of
the the financial needs of members when they retire
BUS 100 Exam #5 Study Guide Latest Update Exam | Questions and
Verified Answers | 100% Correct | Grade A +
How is the job of the bookkeeper different from an accountant?
- ANSWER Bookeeper; the record of buisness transactions, is a
basic part of financial recording
Accountant; classify and summarize financial data provided by
bookkeepers, interpret the data, report the information to
management
What's the purpose of accounting journals and of a ledger? -
ANSWER Journal; bookkeepers then record financial data from
the original transaction documents into a record book or
computer program
Ledger; bookkeepers use a specialized accounting book or
computer program
Why does a bookkeeper prepare a trial balance? - ANSWER to
ensure the figures in the account ledgers are correct and
balanced.
, 2|Page
What are the key steps in preparing an income statement? -
ANSWER summarizes revenues, cost of goods sold, and
expenses (including taxes) for a specific period and highlights
the total profit or loss the firm experienced during that period
Demand deposit - ANSWER individuals and businesses that
deposit money in a checking account can write personal checks
M-1 - ANSWER Money that can be accessed quickly and easily
(coins and paper money, checks, traveler's checks, etc.)
M-2 - ANSWER money included in M-1 plus money that may
take a little more time to obtain (savings accounts, money
market accounts, mutual funds, certificates of deposit, etc.)
M-3 - ANSWER M-2 plus big deposits like institutional money
market funds
Pension funds - ANSWER amounts of money put aside by
corporations, nonprofit organizations, or unions to cover part of
the the financial needs of members when they retire
