12 Questions
What is the primary purpose of a bookkeeping system?
To record and classify business transactions
What type of business may use special journals to record business transactions?
Merchandising business
What is the role of a bookkeeper in a business?
To record, maintain, and update business records
What is the characteristic of bookkeeping that refers to the recording of transactions in order of date of occurrence?
Chronological
What is the starting point of the accounting process?
Bookkeeping
What is composed of the Journal and Ledger?
Book of Accounts
What is the main purpose of a General Ledger?
To group all accounts directly traceable to the chart of accounts
What does 'DR' stand for in accounting?
Debit
When should an item be recorded in the debit column?
When cash or non-cash items are received
What is referred to as 'Value Parted With'?
Increasing the credit balance
What is the purpose of following the Rules of Debit and Credit?
To ensure accurate recording and sound decision making
What is the General Journal referred to as?
The book of original entry
Test your knowledge of bookkeeping principles and procedures. Learn how bookkeeping is the starting point of the accounting process and how it helps gather information for decision-making.
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