LESSON 2 (Identification)

Question 1

defined as the systematic and chronological recording of business transactions or events

Answer 1

BOOKKEEPING

Question 2

guided by prescribed rules and principles of accounting.

Answer 2

systemic way of recording

Question 3

recording is in the order of the dates of occurrence or discovery of the business transactions and events.

Answer 3

chronological way of recording

Question 4

A person who records the day to day financial transactions of an organization. Also known as accounting clerk or technician

Answer 4

Bookkeeper

Question 5

Teaches you to be creative, independent, thinker and writer. Used for class notes

Answer 5

Daybooks

Question 6

gives companies measure of their
performance. It provides information on
general strategic decisions and a
benchmark for it revenue and income
goals. In short, once a business is up and
running, spending extra time and money
on maintaining proper records is critical.

Answer 6

proper bookkeeping

Question 7

Many small companies do not actually hire
full-time accountants to work for them
because of the cost. Instead, small companies
generally hire a bookkeeper or outsource the
job to a professional firm. One important thing
to note here is that many people who intend
to start a new business sometimes overlook
the importance of matters such as keeping
records of every penny spent.

Answer 7

Hire a bookkeeper

Question 8

Record a transaction only when cash is received or paid

Answer 8

cash basis

Question 9

Record a transaction when it occurs, even when cash is not received or paid

Answer 9

accrual basis