Book keeping 1

What is the primary purpose of bookkeeping?

• To prepare financial statements

• To record and track financial transactions.

• To analyse business performance

• To file tax returns

Which of the following is an example of a financial transaction?

• Sending an email to a customer

• Ordering office supplies

• Receiving cash from a sale

• Attending a team meeting

What is the purpose of the general ledger in bookkeeping?

• To record sales and revenue

• To track accounts payable and accounts receivable

• To summarise all financial transactions

• To calculate payroll expenses

What is the difference between bookkeeping and accounting

• Bookkeeping focuses on recording financial transactions, while accounting involves analysing and interpreting financial data

• Bookkeeping is only required for small businesses, while accounting is necessary for large corporations.

• Bookkeeping is a manual process, while accounting is automated using software.

• Bookkeeping is optional, while accounting is mandatory for all businesses

Which of the following is an example of an external user of financial information?

• Company managers

• Employees

• Investors

• Vendors

What is double-entry bookkeeping?

• Recording financial transactions twice to ensure accuracy.

• Keeping two sets of books for redundancy

• Tracking both debit and credit entries for every transaction

• Using two different accounting methods simultaneously.

What is the purpose of double-entry bookkeeping?

• To reduce the chances of errors in financial records

• To simplify the recording of financial transactions

• To increase the complexity of the accounting process

• To eliminate the need for reconciliations

Which accounts increase with a debit entry in double-entry bookkeeping?

• Assets and expenses

• Liabilities and revenues

• Assets and revenues

• Liabilities and expenses

Which accounts decrease with a credit entry in double-entry bookkeeping?

• Assets and expenses.

• Liabilities and revenues

• Assets and revenues

• Liabilities and expenses

Which accounts are increased by debits?

• Assets and expenses.

• Liabilities and revenues

• Assets and revenues.

• Assets and revenues.