Ledger Accounting (Ch 3)

Question 1

What is a Cash PUrchase?

Answer 1

A cash purchase occurs when goods are bought (or a service recieved) and the customer pays immediately using cash, debit card, credit card or cheques. A receipt is issued for the amount of cash paid.

Question 2

What is a Credit Purchase?

Answer 2

A credit purchase occurs when goods are bought (or a service received) and the customer does not have to pay immediately but can pay after a specified number of days. An invoice is then issued to request that payment is made.

Question 3

What is a Cash Sale?

Answer 3

A cash sale occurs when goods are sold (or a service provided) and the customer pays immediately with cash, debit card, credit card or cheque. A receipt is issued for the amount of cash receieved.

Question 4

What is a Credit Sale?

Answer 4

A credit sale occurs when goods are sold (or a service provided) and the customer does not have to pay immediately but can pay after a specified number of days. An invoice is issued to request that the balance owed is then paid.

Question 5

What is a Trial Balance?

Answer 5

A list showing the balance brought down on each ledger account. It is a check to ensure that the total debits equal the total credits, and therefore the totals of the trial balane columns should balance. However, it does not confirm that the account debited or credited is correct.

Question 6

What is Digital bookkeeping?

Answer 6

Storing your accounting recors online, either on a local server or in the cloud.

Question 7

What is the Cloud?

Answer 7

Refers to the internet: all information can be accessed remotely via the internet.

Question 8

What is a CSV file?

Answer 8

A Comma Seperated Values files i a plain text file that contains a list of data. A CSV file is used to exchange data between different applications.

Question 9

What are Recurring entries?

Answer 9

A journal entry that is reccorded in every accounting period.