BOOKKEEPING COMPREHENSIVE EXAM 2026
QUESTIONS AND SOLUTIONS GRADED A+
◉ journal. Answer: In a manual system, this is defined as a book of
original entry. It is used less in a computerised system.
◉ journal entry. Answer: This describes the debit and credit amounts and
accounts that get recorded in the general journal. The amounts will be
posted to the general ledger accounts.
◉ chart of accounts. Answer: This is a listing of the general ledger
accounts. However, it does not contain amounts.
◉ debit. Answer: This term indicates the left side of a general ledger
account and it is the normal balance for asset, expense, and loss
accounts.
◉ credit. Answer: This term indicates the right side of a general ledger
account and it is the normal balance for liability, stockholders' equity,
revenue, and gain accounts.
, ◉ double entry. Answer: Under this system every transaction will
involve at least two general ledger accounts. It also requires that the total
of the debit amounts be equal to the total of the credit amounts.
◉ bookkeeping equation
(or)
accounting equation. Answer: This mathematical expression is assets =
liabilities + stockholders' (or owner's) equity and should always be in
balance when the double-entry system is used.
◉ account. Answer: Two or more of these general ledger records are
required for every transaction.
◉ trial balance. Answer: This internal report lists the balances in each of
the general ledger accounts in either a debit or credit column. Its purpose
is to con rm that the debits are equal to the credits.
◉ adjusting entry. Answer: This type of journal entry is recorded at the
end of an accounting period in order to accrue and/or defer expenses and
revenues. (Each will include a balance sheet account and an income
statement account.)
◉ balance sheet accounts
(or)
permanent accounts
QUESTIONS AND SOLUTIONS GRADED A+
◉ journal. Answer: In a manual system, this is defined as a book of
original entry. It is used less in a computerised system.
◉ journal entry. Answer: This describes the debit and credit amounts and
accounts that get recorded in the general journal. The amounts will be
posted to the general ledger accounts.
◉ chart of accounts. Answer: This is a listing of the general ledger
accounts. However, it does not contain amounts.
◉ debit. Answer: This term indicates the left side of a general ledger
account and it is the normal balance for asset, expense, and loss
accounts.
◉ credit. Answer: This term indicates the right side of a general ledger
account and it is the normal balance for liability, stockholders' equity,
revenue, and gain accounts.
, ◉ double entry. Answer: Under this system every transaction will
involve at least two general ledger accounts. It also requires that the total
of the debit amounts be equal to the total of the credit amounts.
◉ bookkeeping equation
(or)
accounting equation. Answer: This mathematical expression is assets =
liabilities + stockholders' (or owner's) equity and should always be in
balance when the double-entry system is used.
◉ account. Answer: Two or more of these general ledger records are
required for every transaction.
◉ trial balance. Answer: This internal report lists the balances in each of
the general ledger accounts in either a debit or credit column. Its purpose
is to con rm that the debits are equal to the credits.
◉ adjusting entry. Answer: This type of journal entry is recorded at the
end of an accounting period in order to accrue and/or defer expenses and
revenues. (Each will include a balance sheet account and an income
statement account.)
◉ balance sheet accounts
(or)
permanent accounts
