Book of Accounts and Ledger
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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?

    <p>To take the significant roles in reporting accurate financial information</p> Signup and view all the answers

    What is the benefit of preparing accurate financial reports?

    <p>To make sound decisions for the business</p> Signup and view all the answers

    What are the components of key financial reports?

    <p>Statement of financial position, statement of comprehensive income, statement of cash flows, and statement of changes in equity</p> Signup and view all the answers

    In what subject is the discussion of financial reports found?

    <p>Business and Management 2</p> Signup and view all the answers

    What is the purpose of identifying the profit or loss of a business?

    <p>To make sound decisions for the business</p> Signup and view all the answers

    What is the consideration of a bookkeeper in computing for the Net Income or net earnings?

    <p>The type of business organization</p> Signup and view all the answers

    What is the characteristic of a trial balance?

    <p>The debit and credit columns must be equal in total amount</p> Signup and view all the answers

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