BOOKKEEPING CERTIFICATION
COURSE QUESTIONS & ANSWERS
( RATED A+)
A schedule that contains all accounts needed to prepare financial statements is
known as: - ANSWERgeneral ledger
Reorganizing all the journal entries and grouping them by account is known as: -
ANSWERposting to the ledger
Accounting Cycle Steps - ANSWER1. 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 - ANSWERAnalyze business transactions
After analysis, the business transaction is recorded in the journal in what order: -
ANSWERChronological
A form or statement that lists the titles and balances of ALL ledger accounts at a
given date is known as a: - ANSWERtrial balance
Sydney is entering a transaction in QuickBooks. What are the two steps of manual
accounting that will happen simultaneously as she does this? - ANSWERCreating a
journal entry and posting to the ledger
unadjusted trial balance - ANSWERLists 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? - ANSWERThe 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? - ANSWERDebit: 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? -
ANSWER$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 - ANSWERDebit: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
A trial balance that is prepared after taking into account all the adjusting entries is
known as: - ANSWERadjusted trial balance
The preparation of find ial statements and closing the books is what step in the
accounting cycle? - ANSWERThe last step
Undeposited Funds account - ANSWERTemporary account that holds funds
received but not deposited in the bank. Allows you to group payments together into a
single bank deposit but if only depoisting a single transaction select CHECKING
instead
sales receipt - ANSWERA proof of purchase that shows the selling price of each
item or service purchased, the total selling price of all items purchased, any sales
tax, and the total purchase amount.
Balance Sheet - ANSWERA financial statement that reports assets, liabilities, and
owner's equity on a specific date.
Statement of Equity - ANSWERFinancial statement showing the beginning balance,
additions to and deductions from, and the ending balance of the shareholders' equity
account, for a specified period. Also called statement of shareholders equity.
Income Statement (p&l) - ANSWERA financial statement showing the revenue and
expenses for a fiscal period.
Cash Flow Statement - ANSWERA summary that shows total income and spending
for a given time period
Account numbers beginning with a 1 or a 6 signifies what type of accounts: -
ANSWERAsset and and operating for example
A trial balance where total debits equal total credits indicates: - ANSWER- The
ledger is in balance.
COURSE QUESTIONS & ANSWERS
( RATED A+)
A schedule that contains all accounts needed to prepare financial statements is
known as: - ANSWERgeneral ledger
Reorganizing all the journal entries and grouping them by account is known as: -
ANSWERposting to the ledger
Accounting Cycle Steps - ANSWER1. 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 - ANSWERAnalyze business transactions
After analysis, the business transaction is recorded in the journal in what order: -
ANSWERChronological
A form or statement that lists the titles and balances of ALL ledger accounts at a
given date is known as a: - ANSWERtrial balance
Sydney is entering a transaction in QuickBooks. What are the two steps of manual
accounting that will happen simultaneously as she does this? - ANSWERCreating a
journal entry and posting to the ledger
unadjusted trial balance - ANSWERLists 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? - ANSWERThe 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? - ANSWERDebit: 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? -
ANSWER$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 - ANSWERDebit: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
A trial balance that is prepared after taking into account all the adjusting entries is
known as: - ANSWERadjusted trial balance
The preparation of find ial statements and closing the books is what step in the
accounting cycle? - ANSWERThe last step
Undeposited Funds account - ANSWERTemporary account that holds funds
received but not deposited in the bank. Allows you to group payments together into a
single bank deposit but if only depoisting a single transaction select CHECKING
instead
sales receipt - ANSWERA proof of purchase that shows the selling price of each
item or service purchased, the total selling price of all items purchased, any sales
tax, and the total purchase amount.
Balance Sheet - ANSWERA financial statement that reports assets, liabilities, and
owner's equity on a specific date.
Statement of Equity - ANSWERFinancial statement showing the beginning balance,
additions to and deductions from, and the ending balance of the shareholders' equity
account, for a specified period. Also called statement of shareholders equity.
Income Statement (p&l) - ANSWERA financial statement showing the revenue and
expenses for a fiscal period.
Cash Flow Statement - ANSWERA summary that shows total income and spending
for a given time period
Account numbers beginning with a 1 or a 6 signifies what type of accounts: -
ANSWERAsset and and operating for example
A trial balance where total debits equal total credits indicates: - ANSWER- The
ledger is in balance.
