Bookkeeping Certification Course
Exam Questions and Solutions
A schedule that contains all accounts needed to prepare financial statements
is known as: - general ledger
-Reorganizing all the journal entries and grouping them by account is known
as: - posting to the ledger
-Chart of Accounts (COA) - an ordered listing of accounts that a company
has identified and made available for recording transactions
-Journal Entry - an accounting method for expressing the effects of a
transaction on accounts in a debits-equal-credits format
-General Ledger - A ledger that contains all accounts needed to prepare
financial statements
-Financial Statements - Financial reports that summarize the financial
condition and operations of a business
-To find the balance of the account types that INCREASE with a DEBIT (asset
and expense account), bookkeeper's will: - Subtract total credits from total
debits (Debits-Credits=)
-Accounting Cycle Steps - 1. Analyze business transactions
2. Journalize the transactions
3. Post to ledger accounts
4. Prepare a trial balance
5. Journalize and post adjusting entries
6. Prepare an adjusted trial balance
7. Prepare financial statements
8. Journalize and post closing entries
9. Prepare a post-closing trial balance
-The accounting cycle step 1 - Analyze business transactions
-After analysis, the business transaction is recorded in the journal in what
order: - Chronological
-A form or statement that lists the titles and balances of ALL ledger accounts
at a given date is known as a: - trial balance
, -Sydney is entering a transaction in QuickBooks. What are the two steps of
manual accounting that will happen simultaneously as she does this? -
Creating a journal entry and posting to the ledger
-Account numbers beginning with a 1 or a 6 signifies what type of accounts:
- Asset and and operating for example
-A trial balance where total debits equal total credits indicates: - - The ledger
is in balance.
-To determine a companies financial position was on a certain date, which
would be the best report to look at? - The balance sheet because it reports a
company's assets, liabilities, and equity at a specific point in time. A
company can use this to determine the financial position on the day it needs
it
-What financial statement reports the sources and uses of cash by a
business? - Statement of cash flow summarizes the amount of cash and cash
equivalents entering and leaving a company
-unadjusted trial balance - Lists the general ledger account balances at the
end of the reporting period before any adjusting entries are recorded and
posted. It is the starting point at step 3 used for analyzing account balances
and making adjustments
-A transaction journal shows a $100 customer payment into QuickBooks.
Which account would show as being debited? - The business bank account
would be debited $100 because it will INCREASE the back account balance
by $100
-double-entry bookkeeping normally results in which of the following
balances in the ledger accounts? - Debit: assets and expenses/ Credit:
Liabilities, Equity, and Revenue
-If you have a debit entry in a cash account of $900 and total credit entries
of $600 to the cash account the cash account has what type and amount
balance? - $300 debit balance because total debits $900 minute total credits
of $600= a $300 POSITIVE (debit) balance
-a company bought computers with credit from a supplier and entered the
purchase into Quickbooks. The transaction journal for the company would
show what kind of entry - Debit:Computers/ Credit: Supplier credit PAYABLE
because when you enter a transaction that involves buying on a credit the
company debits the asset (the computers) and credits the payable (what is
owed to the supplier by the company
Exam Questions and Solutions
A schedule that contains all accounts needed to prepare financial statements
is known as: - general ledger
-Reorganizing all the journal entries and grouping them by account is known
as: - posting to the ledger
-Chart of Accounts (COA) - an ordered listing of accounts that a company
has identified and made available for recording transactions
-Journal Entry - an accounting method for expressing the effects of a
transaction on accounts in a debits-equal-credits format
-General Ledger - A ledger that contains all accounts needed to prepare
financial statements
-Financial Statements - Financial reports that summarize the financial
condition and operations of a business
-To find the balance of the account types that INCREASE with a DEBIT (asset
and expense account), bookkeeper's will: - Subtract total credits from total
debits (Debits-Credits=)
-Accounting Cycle Steps - 1. Analyze business transactions
2. Journalize the transactions
3. Post to ledger accounts
4. Prepare a trial balance
5. Journalize and post adjusting entries
6. Prepare an adjusted trial balance
7. Prepare financial statements
8. Journalize and post closing entries
9. Prepare a post-closing trial balance
-The accounting cycle step 1 - Analyze business transactions
-After analysis, the business transaction is recorded in the journal in what
order: - Chronological
-A form or statement that lists the titles and balances of ALL ledger accounts
at a given date is known as a: - trial balance
, -Sydney is entering a transaction in QuickBooks. What are the two steps of
manual accounting that will happen simultaneously as she does this? -
Creating a journal entry and posting to the ledger
-Account numbers beginning with a 1 or a 6 signifies what type of accounts:
- Asset and and operating for example
-A trial balance where total debits equal total credits indicates: - - The ledger
is in balance.
-To determine a companies financial position was on a certain date, which
would be the best report to look at? - The balance sheet because it reports a
company's assets, liabilities, and equity at a specific point in time. A
company can use this to determine the financial position on the day it needs
it
-What financial statement reports the sources and uses of cash by a
business? - Statement of cash flow summarizes the amount of cash and cash
equivalents entering and leaving a company
-unadjusted trial balance - Lists the general ledger account balances at the
end of the reporting period before any adjusting entries are recorded and
posted. It is the starting point at step 3 used for analyzing account balances
and making adjustments
-A transaction journal shows a $100 customer payment into QuickBooks.
Which account would show as being debited? - The business bank account
would be debited $100 because it will INCREASE the back account balance
by $100
-double-entry bookkeeping normally results in which of the following
balances in the ledger accounts? - Debit: assets and expenses/ Credit:
Liabilities, Equity, and Revenue
-If you have a debit entry in a cash account of $900 and total credit entries
of $600 to the cash account the cash account has what type and amount
balance? - $300 debit balance because total debits $900 minute total credits
of $600= a $300 POSITIVE (debit) balance
-a company bought computers with credit from a supplier and entered the
purchase into Quickbooks. The transaction journal for the company would
show what kind of entry - Debit:Computers/ Credit: Supplier credit PAYABLE
because when you enter a transaction that involves buying on a credit the
company debits the asset (the computers) and credits the payable (what is
owed to the supplier by the company
