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Questions and Answers
Which of the following best describes bookkeeping?
Which of the following best describes bookkeeping?
- The process of preparing tax returns
- The process of analyzing financial statements
- The process of recording data related to accounting transactions (correct)
- The process of auditing financial records
Which system requires every transaction to affect two items?
Which system requires every transaction to affect two items?
- Single entry system
- Triple entry system
- Multiple entry system
- Double entry system (correct)
What is the effect of recording an expense in an account?
What is the effect of recording an expense in an account?
- Debit increases equity
- Credit decreases equity
- Debit decreases assets (correct)
- Credit increases assets
When an owner starts a business with cash, how is the transaction recorded?
When an owner starts a business with cash, how is the transaction recorded?
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What is the effect of recording a sale of goods for cash?
What is the effect of recording a sale of goods for cash?
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What is the purpose of double entry bookkeeping?
What is the purpose of double entry bookkeeping?
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How are expenses recorded in an account?
How are expenses recorded in an account?
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What is the effect of recording a purchase of non-current assets with cash?
What is the effect of recording a purchase of non-current assets with cash?
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How is a purchase of goods for resale on credit recorded?
How is a purchase of goods for resale on credit recorded?
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What is the effect of recording a sale of goods for cash?
What is the effect of recording a sale of goods for cash?
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