BOOKKEEPING BASICS EXAM
QUESTIONS WITH VERIFIED
ANSWERS
Whichwofwthewfollowingwtaskswfallwunderwawbookkeeper'swrole?wSelectwallwthatwapply.w-
wCORRECTwANSWERS-wHandlewbankwfeedswandwreconcilewbankwaccounts
-wManagewaccountswreceivable/payable
-wRecordwfinancialwtransactions
-wWorkwwithwtaxwpreparerswandwassistwwithwtaxwcompliance
Youwarewawbookkeeperwforwawmusicwvenue.wThewowner'swsonwcontactswyouwprivately,waskin
gwforwfinancialwinformation.
Howwshouldwyouwrespond?w-
wCORRECTwANSWERSYouwshouldwnotwsharewanywinformation,wandwinformwthewownerwofw
thewrequest.
Youwarewthewbookkeeperwforwawchiropractor'swoffice.wYouwnoticewthatwyouwrecordedwduplica
tewincomewfromwseveralwinvoiceswlastwmonth,wmakingwitwseemwlikewmorewfundswwerewavaila
ble.wYouwfixwthewissuewandwdisclosewthewmistakewtowthe
owner.w-wCORRECTwANSWERSHonesty
Yourwclient'swaccount'swreceivablewisw$6,750.wWhatwdoeswthatwmean?w-
wCORRECTwANSWERSYourwclient wiswowedw$6,750wforwservices worwgoodswtheywprovided.
Neverwusingwinsidewinformationwofwawclientwforwpersonalwgainwiswpartwofwwhichwethicalwprinci
ple?w-wCORRECTwANSWERSConfidentiality
AccountingwEquationw-wCORRECTwANSWERSEquityw+wLiabilitiesw=wAssets
Aswyouwscrutinizewthewbalancewsheetwforwanwimportantwclient,wyouwnoticewthatwthewtotalwass
etswofwthewbusinesswdon'twmatchwupwwithwthewcombinedwvaluewofwliabilitieswandwequity.wThe
waccountingwequation,wwhich wshouldwalways wbewin wbalance,wseemswincorrect.wWhat'swthew
correctwaccountingwequation?w-wCORRECTwANSWERSAssetsw=wLiabilitiesw+wEquity
Assetsw-
wCORRECTwANSWERSAssetswarewthewvaluablewresourceswawbusinesswowns.wCash,wacc
ountswreceivable,winventory,winvestmentswinwotherwbusinesses,wequipment,wintellectualwpr
opertyw(suchwaswawpatent),wyouwnamewit!wThey'rewthewbusiness'swsuperpowers,wreadywtowb
ewusedwtowgeneratewprofitswandwfuelwgrowth.
Liabilitiesw-
wCORRECTwANSWERSLiabilitieswarewthewobligationswthewbusinesswowes wtowothers.wLiabil
itieswcanwbewloanswtowsupportwthewbusiness,wmortgage,wpayroll,wsaleswtaxwowedwtowthewgov
ernment,wcreditwcards,worwanywotherwdebtswthatwneedwtowbewrepaid.wTheywrepresentwthewbu
siness'swpromiseswtowothers.
Equityw-
wCORRECTwANSWERSEquitywrepresentswthewowner's wstakewin wthewbusiness.wEquitywiswt
hewresultwofwoneworwmorewownerwinvestmentswandwthewaccumulatedwprofitsworwlosseswoverw
time.wIt'swthewbusiness'swnetwworth,wthewshieldwprotectingwitwfromwfinancialwturmoil.
ThewbalancewSheetw-
wCORRECTwANSWERSThe wbalancewsheetwiswwhere weverythingwcomeswtogether.wIt'swthew
QUESTIONS WITH VERIFIED
ANSWERS
Whichwofwthewfollowingwtaskswfallwunderwawbookkeeper'swrole?wSelectwallwthatwapply.w-
wCORRECTwANSWERS-wHandlewbankwfeedswandwreconcilewbankwaccounts
-wManagewaccountswreceivable/payable
-wRecordwfinancialwtransactions
-wWorkwwithwtaxwpreparerswandwassistwwithwtaxwcompliance
Youwarewawbookkeeperwforwawmusicwvenue.wThewowner'swsonwcontactswyouwprivately,waskin
gwforwfinancialwinformation.
Howwshouldwyouwrespond?w-
wCORRECTwANSWERSYouwshouldwnotwsharewanywinformation,wandwinformwthewownerwofw
thewrequest.
Youwarewthewbookkeeperwforwawchiropractor'swoffice.wYouwnoticewthatwyouwrecordedwduplica
tewincomewfromwseveralwinvoiceswlastwmonth,wmakingwitwseemwlikewmorewfundswwerewavaila
ble.wYouwfixwthewissuewandwdisclosewthewmistakewtowthe
owner.w-wCORRECTwANSWERSHonesty
Yourwclient'swaccount'swreceivablewisw$6,750.wWhatwdoeswthatwmean?w-
wCORRECTwANSWERSYourwclient wiswowedw$6,750wforwservices worwgoodswtheywprovided.
Neverwusingwinsidewinformationwofwawclientwforwpersonalwgainwiswpartwofwwhichwethicalwprinci
ple?w-wCORRECTwANSWERSConfidentiality
AccountingwEquationw-wCORRECTwANSWERSEquityw+wLiabilitiesw=wAssets
Aswyouwscrutinizewthewbalancewsheetwforwanwimportantwclient,wyouwnoticewthatwthewtotalwass
etswofwthewbusinesswdon'twmatchwupwwithwthewcombinedwvaluewofwliabilitieswandwequity.wThe
waccountingwequation,wwhich wshouldwalways wbewin wbalance,wseemswincorrect.wWhat'swthew
correctwaccountingwequation?w-wCORRECTwANSWERSAssetsw=wLiabilitiesw+wEquity
Assetsw-
wCORRECTwANSWERSAssetswarewthewvaluablewresourceswawbusinesswowns.wCash,wacc
ountswreceivable,winventory,winvestmentswinwotherwbusinesses,wequipment,wintellectualwpr
opertyw(suchwaswawpatent),wyouwnamewit!wThey'rewthewbusiness'swsuperpowers,wreadywtowb
ewusedwtowgeneratewprofitswandwfuelwgrowth.
Liabilitiesw-
wCORRECTwANSWERSLiabilitieswarewthewobligationswthewbusinesswowes wtowothers.wLiabil
itieswcanwbewloanswtowsupportwthewbusiness,wmortgage,wpayroll,wsaleswtaxwowedwtowthewgov
ernment,wcreditwcards,worwanywotherwdebtswthatwneedwtowbewrepaid.wTheywrepresentwthewbu
siness'swpromiseswtowothers.
Equityw-
wCORRECTwANSWERSEquitywrepresentswthewowner's wstakewin wthewbusiness.wEquitywiswt
hewresultwofwoneworwmorewownerwinvestmentswandwthewaccumulatedwprofitsworwlosseswoverw
time.wIt'swthewbusiness'swnetwworth,wthewshieldwprotectingwitwfromwfinancialwturmoil.
ThewbalancewSheetw-
wCORRECTwANSWERSThe wbalancewsheetwiswwhere weverythingwcomeswtogether.wIt'swthew
