Unit 1 Financial Position
What is a creditor?
How is personal net worth calculated?
What are assets?
What are liabilities?
What is personal equity?
What is the purpose of accounting?
What does a balance sheet show?
What is owner’s equity?
Explain liquidity order.
What is the maturity date rule?
Unit 2 Business Transactions
What is a business transaction?
What is the accounting period?
What are Generally Accepted Accounting Principles?
Unit 3 Recording Transactions in T-Accounts
What is an account?
What does debit refer to?
What does credit refer to?
How many accounts are there?
Where are asset balances recorded?
Where are liability balances recorded?
What is a ledger?
What is double-entry accounting?
The following questions refer to T-Accounts specifically…
What side of the account does an asset increase on?
What side of the account does a liability increase on?
How do you calculate the account balance?
Where do you place the account balance?
Describe the contents of a trial balance.
Unit 4 Preparing the Income Statement
What is profit?
What does a business do?
What is revenue?
What are expenses?
What is net income?
What is net loss?
What does an income statement show?
What is the accounting period?
What does revenue do to owner’s equity?
Unit 5 Revenue and Expense Accounts
On what side of the account is revenue recorded?
What do expenses do to owner’s equity?
On what side of the account are expenses recorded?
What is the purpose of the owner’s Drawings account?
What is the difference between the account form and the report form of the balance sheet?
When is the income statement prepared?
Unit 6 The Journal
What is a journal?
Explain what journalizing means.
Explain what a journal represents.
What is double-entry accounting?
Unit 7 Posting to the Ledger
What is posting?
What does the DR./CR. column indicate?
The following questions relate to both the journal and the ledger…
What does an opening entry record?
What is a compound entry?
What is a chart of accounts?
What is a trial balance proof of?
Explain what is contained in the accounting cycle.
Unit 8 Source Documents
What is a source document?
Unit 13 Closing Entries
What are temporary accounts? Give an example.
What are permanent accounts? Give an example (or three).
When do you close temporary accounts?
What happens to an account balance when it is closed?
Which accounts are closed at the end of the accounting period?
Which accounts are not closed at the end of the accounting period?
What is contained in the post-closing trial balance and when is it created?
Unit 15 Sales and Goods and Services Tax
What is GST?
What happens to the GST a business pays when buying goods or services?
What is the PST Payable account used for?
What is the difference between the GST Payable account and the GST Refundable account?
Unit 19 A Multi-Column Journal System
What is a columnar journal?
Explain how many lines a typical transaction takes in the columnar journal.
What are the Other Accounts columns used for?
How do you know if you are balancing when you use the columnar journal?
What do you do with totals once you reach the bottom of the page?
Explain the process of posting to the ledger from the columnar journal.
What is the significance of a circled item on the columnar journal?
Unit 25 Cash Control
What is internal accounting control and what is it used for?
What is included in “cash”?
What special procedure is in place with the actual handling of cash? Separation of Duties
Explain the “Immediate Listing of Cash Receipts” procedure.
What is done with a cancelled sales slip?
What is the Cash Short and Over account used for?
How is a cash shortage recorded in the Cash Short and Over account?
How is a cash overage recorded in the Cash Short and Over account?
What is the petty cash fund used for?
What kind of account is Petty Cash
What is a petty cash voucher used for?
What does replenishing the petty cash fund involve?
Unit 26 Checking Cash Records
What is an audit?
What is a bank debit memo?
Explain what a depositor’s account is to a bank.
What is a bank credit memo?
Explain what an NSF cheque is/does.
What is a cancelled cheque?
What is an outstanding cheque?
Explain the purpose of a bank reconciliation statement.