Book of Accounts and Ledger

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Questions and Answers

What is a trial balance?

A system used to record all transactions of a business
A list of all ledger accounts with closed or final balances on a certain period (correct)
A financial statement that shows the profitability of a business
A report that summarizes the cash flows of a business

What is the purpose of a trial balance?

To record all transactions of a business
To identify the profit or loss of a business
To prepare the financial statements of a business (correct)
To prepare the budget of a business

What is the key to preparing accurate financial reports?

Preparing the financial statements quickly
Using a computerized accounting system
Hiring a bookkeeper to do the job
Recording all transactions that have monetary value (correct)

What is the role of the bookkeeper in a business?

To take the significant roles in reporting accurate financial information (A) Signup and view all the answers

What is the benefit of preparing accurate financial reports?

To make sound decisions for the business (B) Signup and view all the answers

What are the components of key financial reports?

Statement of financial position, statement of comprehensive income, statement of cash flows, and statement of changes in equity (C) Signup and view all the answers