Bookkeeping

What is bookkeeping?

• The process of recording, analyzing, and interpreting the financial transactions of a business
• The process of writing a book
• The process of keeping books in a library
• The process of booking tickets for a show

What are some examples of financial information?

• wages/salary

• investments, savings accounts, and other assets

• bank deposits and withdrawals

• safe deposit box

Accounts payables are

• lottery winnings

• debts a business owes

If a business has $10,000 cash on hand, $25,000 in a checking account, and land valued at $300,000, on which line of a financial statement should the $335,000 total be entered?

• net worth

• total assets

• total liabilities

• current assets

A balance sheet is used to see a business's assets and liabilities

• False

• True

____________ is NOT the ability to yield a financial gain.

• False

• True

The Statement of Financial Position shows what a business owns and owes at a specific date.

• True

• False

On a net worth statement, net worth is the same as:

• current assets

• equity

• inventory

• total liabilities

A person's account who owes money to the business for goods or services supplied is known as___________.

• Assets

• Accounts Receivable

• Accounts Payable

• Capital

Assets are expected to last and to be used by the business for a long time are called_____________________.

• Assets

• Current Assets

• Non-current Assets

• Capital