Penn Foster: Bookkeeping Exam
Questions and Answers
Bookkeeper - Answer -A person in charge of keeping the financial records of an
organization.
Service Business - Answer -A business that performs a service in exchange for
payment.
Bookkeeping - Answer -The process of recording business transactions.
Accounting - Answer -The art of recording, classifying, and summarizing in a significant
manner and in terms of money, transactions and events which are of a financial
character,and interpreting the results.
Account Title - Answer -The name given to an account.
Transaction - Answer -Any activity that occurs in the business that changes part of the
accounting equation (assets, liabilities, or owner's equity).
Account Balance - Answer -The amount in an account.
Accounting Equation - Answer -Assets = Liabilities + Owner's Equity
Asset - Answer -Anything of value that is owned.
Capital - Answer -Account used to summarize owner's equity.
Liability - Answer -(Creditor's Equity) Anything OWED by a business.
Owner's Equity - Answer -The value remaining in the business when liabilities have
been deducted from assets.
Account Payable - Answer -A liability account recording that money is or will be owed.
Line One of Balance Sheet - Answer -Who (Business Name)
Line Two of Balance Sheet - Answer -Type of Accounting Statement
Questions and Answers
Bookkeeper - Answer -A person in charge of keeping the financial records of an
organization.
Service Business - Answer -A business that performs a service in exchange for
payment.
Bookkeeping - Answer -The process of recording business transactions.
Accounting - Answer -The art of recording, classifying, and summarizing in a significant
manner and in terms of money, transactions and events which are of a financial
character,and interpreting the results.
Account Title - Answer -The name given to an account.
Transaction - Answer -Any activity that occurs in the business that changes part of the
accounting equation (assets, liabilities, or owner's equity).
Account Balance - Answer -The amount in an account.
Accounting Equation - Answer -Assets = Liabilities + Owner's Equity
Asset - Answer -Anything of value that is owned.
Capital - Answer -Account used to summarize owner's equity.
Liability - Answer -(Creditor's Equity) Anything OWED by a business.
Owner's Equity - Answer -The value remaining in the business when liabilities have
been deducted from assets.
Account Payable - Answer -A liability account recording that money is or will be owed.
Line One of Balance Sheet - Answer -Who (Business Name)
Line Two of Balance Sheet - Answer -Type of Accounting Statement
