Book keeping Exam Part 1

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1.You're the bookkeeper for an automobile mechanic shop. The shop we
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nt dark and closed for a month, then it suddenly reopened under a differen
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t name. Your friends have asked you why?
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Which would be the most appropriate reason to tell your friends?: Explain
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to your friends that your profession requires you to keep client informa
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on confidential.
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2.Identify two rules of a certified bookkeepers code of ethics?: Notify clie
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nts of situations that may be legal.
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Always keep a clients financial information confidential.
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3.Match each balance sheet component it's description: Assets: What the
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busi- ness owns that can be converted into cash.
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Accounts receivable: Money owed the business in the short-
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cy term. Liabilities: Money the business owes to others.
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Current liabilities: Utilities, taxes, payments towards long-
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term debts, interest pay- ments, and payroll.
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Equity: Money generated by a business or put into the business by its
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wners.
4.You are the bookkeeper for a company. You are constructing a cash f
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low statement. cy




For each statement about cash flow statements, select true or false.: True
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The three sections of a cash flow statement are operating, investing, a
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d financial activities.
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A company that has enough cash to pay its employees and debts is co
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sidered to have a "positive" cash flow
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False:

Cash flow statements are always Income Statements.
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Cash flow is profit. cy cy cy



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, Book keeping Exam Part
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1
5.For each statement about Double Entry, Accounting, select true or false
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- y

True:




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