BBK99E1 BASIC BOOKKEEPING COMPREHENSIVE EXAM PREP QUESTIONS AND SOLUTIONS VERIFIED STUDY RESOURCE

BBK99E1 BASIC BOOKKEEPING
COMPREHENSIVE EXAM PREP QUESTIONS
AND SOLUTIONS VERIFIED STUDY
RESOURCE

●● Posting
Answer: The process of transferring entries from the books of original
entry to the ledger


●● Ledger
Answer: A book that contains various accounts like assets, liabilities,
equity, revenues, and expenses, where entries are posted from the
journal.


●● Types of accounting (5)
Answer: Bookkeeping, Financial accounting, cost accounting,
managerial accounting, social responsibility accounting


●● Bookkeeping
Answer: Recording transactions and maintaining books


●● Financial accounting

, Answer: preparation, presentation, and interpretation of financial
statements and communicating the results to various users of the
financial statements


●● Cost accounting
Answer: Mainly related to the ascertainment of cost at various levels of
activity, and fixing the price of the final product


●● Managerial Accounting
Answer: Generation and communication of accounting information to
management for decision-making


●● Social Responsibility Accounting
Answer: Covers accounting of social costs incurred by the enterprise and
benefits offered to society and reporting thereof.


●● The Accounting Cycle
Answer: The multi-step process of identifying, analyzing, recording, and
processing all financial transactions of a company. These steps are
repeated annually.


●● The Accounting Equation
Answer: Assets = Liabilities + Equity