Bookkeeper Responsibilities Quiz
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Questions and Answers

What is a primary responsibility of bookkeepers?

  • Develop marketing strategies for their clients
  • Conduct audits for financial institutions
  • Prepare tax returns for governmental agencies
  • Ensure financial integrity of client records (correct)

Why is confidentiality crucial for bookkeepers?

  • It allows them to take legal action against clients
  • It maintains trust and encourages transparency (correct)
  • It prevents investors from influencing their decisions
  • It protects their personal financial status

What might happen if financial records are untrustworthy?

  • Investors might lose money or banks could refuse loans (correct)
  • Investors could potentially profit more
  • Clients will receive larger loans from banks
  • Bookkeepers will face fewer legal liabilities

How do subpoenas affect bookkeepers' integrity?

<p>They provide legal protection when discussing clients' financial status (C)</p> Signup and view all the answers

Which of the following reflects the societal role of bookkeepers?

<p>To ensure accurate and honest record-keeping (A)</p> Signup and view all the answers

Bookkeepers use reliable sources and due ______ to ensure that records are as truthful and accurate as possible.

<p>diligence</p> Signup and view all the answers

Shareholder's ______ is what is left to be claimed by the owner or shareholders after bills are paid.

<p>equity</p> Signup and view all the answers

An ______ statement summarizes a company's revenues, costs, and expenses.

<p>income</p> Signup and view all the answers

With double-entry accounting, a credit entry must have a corresponding ______ entry.

<p>debit</p> Signup and view all the answers

Liabilities, owner's equity, and ______ belong on the credit side of a T-account.

<p>revenue</p> Signup and view all the answers

A transaction journal is a ______ record of a business's transactions.

<p>chronological</p> Signup and view all the answers

A post reference number correlates with an ______ in a general ledger to which a transaction was posted.

<p>account</p> Signup and view all the answers

Bookkeepers should never discuss confidential financial information with anyone.

<p>False (B)</p> Signup and view all the answers

Which of the following individuals is Sally ethically allowed to discuss financial statement information with?

<p>Carla, the owner of Pencil Pros. (B)</p> Signup and view all the answers

What is the accounting equation?

<p>Assets = Liabilities + Owner's Equity</p> Signup and view all the answers

How much money will Carla retire with if she closes the business, assuming assets of $6,000 and liabilities of $4,000?

<p>$2,000</p> Signup and view all the answers

If Carla invests an additional $10,000 in Pencil Pros, what will her updated assets be?

<p>$16,000</p> Signup and view all the answers

What will Pencil Pros' owner's equity be after Carla decides to purchase a kiosk and take out a loan to cover the $5,000 cost?

<p>$12,000</p> Signup and view all the answers

What will Pencil Pros' liabilities be after Sally records the bill for a bathroom installed last month, assuming the company received a $2,000 bill?

<p>$11,000</p> Signup and view all the answers

Which financial report should Sally prepare for Carla if she wants to determine whether it would be better to use cash or credit for the purchase of a large mobile copy station?

<p>Statement of cash flows (C)</p> Signup and view all the answers

Carla wants to see a record of Pencil Pros' profits and losses for the last three years. Which financial reports should Sally prepare?

<p>Income statement (D)</p> Signup and view all the answers

Carla wants to see what her investment in Pencil Pros is worth. Which financial report should Sally prepare?

<p>Statement of equity (B)</p> Signup and view all the answers

Carla wants to see a snapshot of the company's assets and liabilities at this moment. Which financial report should Sally prepare?

<p>Balance sheet (B)</p> Signup and view all the answers

Double-entry accounting requires at least ______ entries, one for the debit and one for the credit sides.

<p>two</p> Signup and view all the answers

The entries for debits and credits must always be the same amount.

<p>True (A)</p> Signup and view all the answers

If Pencil Pros sells ten printed packages for a total of $100, what will the debit and credit entries be?

<p>Debit: $100 to Cash, Credit: $100 to Sales Revenue</p> Signup and view all the answers

T-accounts are visual representations of ______ accounting.

<p>double-entry</p> Signup and view all the answers

A transaction journal records transactions alphabetically by account name.

<p>False (B)</p> Signup and view all the answers

Which of the following is NOT a purpose of a transaction journal?

<p>Maintain account balances. (B)</p> Signup and view all the answers

A ______ maintains account balances for every company account.

<p>general ledger</p> Signup and view all the answers

Flashcards

Bookkeeper's Role

A bookkeeper is responsible for the accuracy and trustworthiness of a client's financial records.

Suspicious Activity

Unusual or potentially illegal financial transactions that a bookkeeper must report.

Financial Integrity

The accuracy and honesty of financial records.

Client Confidentiality

Bookkeepers must keep client financial information private.

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Subpoena

A legal document ordering a bookkeeper to provide information, protecting them legally.

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Financial Records

Documents that detail a company or individual's financial transactions.

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Investor Losses

When inaccurate or dishonest financial records lead to investment losses for investors.

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Loan Rejections

Banks refusing loans due to untrustworthy financial information.

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Compliance with Law

Following all legal requirements concerning financial records.

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Bookkeeper's Ethical Responsibility

Ensuring financial records are truthful and accurate, reporting suspicious activity, and maintaining confidentiality.

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Shareholder's Equity

What's left over after all debts are settled, representing ownership share.

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Income Statement

A report summarizing company revenues, costs, and expenses.

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Double-Entry Accounting

Accounting method where every transaction has a debit and a credit entry.

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T-Account Credit Side

Where liabilities, owner's equity, and revenue are recorded.

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Transaction Journal

A chronological record of business transactions.

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Post Reference Number

Number linking a transaction to its corresponding account in the general ledger.

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Study Notes

Bookkeeper Responsibilities

  • Bookkeepers maintain the financial integrity of client records.
  • They must report suspicious or illegal activity to clients.
  • Confidentiality is crucial in all interactions with clients.
  • Accurate and honest records are vital for society.
  • Inaccurate records can lead to investor losses or loan denials.
  • Adherence to the law is essential.
  • Subpoenas protect bookkeepers from compromising client financial information.

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Description

Test your knowledge on the essential responsibilities of bookkeepers. This quiz covers their role in maintaining financial integrity, ensuring confidentiality, and adhering to regulations. Understand the impact of accurate record-keeping on clients and society.

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