DISCUSSION

1. How do bookkeeping procedures in a large organization differ from those in a small one? Are the basic principles the same or different?

2. What are some of the basic requirement for a bookkeeper?

3. When where the firat known business records kent? By whom? What kinds of records were kept?

4. How did modern bookkeeping begin?

5. What are the two basic methods of bookkeeping?

6. When was the double entry method introduced? By whom? What is its basic principle?

7. what is an account? What are the three categories of financial data listed in an account?

8. What broad areas of interest is bookkeeping concerned with?

9. What is the difference between an asset and a liability? Give an example of each.

10. What is the term used for the value of a business to its owners? What other terms refer to the same concept?

11. What is a ledger? What kinds of accounts are entered in it?

12. What is posting?

13. What information is recorded in journals?

14. On which side of an account are debits entered? On which side are credits entered? What do these terms mean literally? How are they commonly abbreviated?

15. For what purpose do some bookkeepers use a far right-hand column in their ledgers?

16. What is the basic accounting formula?

17. How are asset and expense accounts decreased? How are they increased?

18. How are liability, capital, and income accounts decreased? How are they increased?

19. Describe the entries to be made by a bookkeeper for a furniture store when a couch is sold for $300, and (b) when the janitor is paid his weekly salary of $175.

20. What is the process by which entries are made in the ledger?

21. What is the purpose of footing, or totaling the columns of an account?

22. What deed it mean if the debits and credits in a ledger are not balanced?

23. What is not included in single-entry bookkeeping? What type officer is commonly kept by means of the single-entry method?

24. What are some of the specific types of transactions that are frequently recorded by bookkeepers?

25. What are some of the other records that a bookkeeper often keeps?

26. Why is a bookkeeper a key person in an organization?

REVIEW

A. Match the phrase on the left with the statement on the right.

1. Liability - Something of value to an organization.

2. Credit - The basic record in double-entry bookkeeping.

3. Journal - Owners equity.

4. Post - The left-hand column of an account.

5. Footing - The right-hand column of an account.

6. Account - The test balance of the accounts.

7. Asset - A book of original entries.

8. Trial balance - The book that lists all of the accounts.

9. Proprietorship - That which is owed by an organization.

10. Debit - To transfer entries from the journal to the ledger.

11. Ledger - Totaling or adding columns.

B. What type of account-asset, liability, capital, income, or expense-do you thing of the following items should be listed under?

1. Office supplies in stock ___________________________

2. Accrued taxes ___________________________

3. Typewriter rental ___________________________

4. Installment payments received ___________________________

5. Cash in bank ___________________________

C. Check the appropriate box-debit or credit-to show what the bookkeeper should do if he or she wants to:

1. Increase the payroll (expense) account. DR. CR.

2. Increase the notes payable (liabilities)

3. Increase the proprietorship account.

4. Increase the inventory (asset) account.

5. Increase the sales (income) account.

6. Decrease the owner’s equity account.

7. Decrease the furniture and fixtures (asset) account.

8. Decrease the telephone (expense) account.

9. Decrease the sales (income) account.

10. Decrease the mortgage (liability) account.

D. Describe in your own words the qualification that a good bookkeeper should have.

E. Do you think the bookkeeper is an important part of an organization? What kind of satisfaction would a person receive by working as a bookkeeper?

Date: 2014-12-29; view: 942