Difference between revisions of "AY Honors/Bookkeeping/Answer Key"
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==2. Define the following terms:== | ==2. Define the following terms:== | ||
===a. Asset=== | ===a. Asset=== | ||
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| + | An asset is an economic resource owned by the company that is expected to provide them future benefits. Examples include, but are not limited to, cash, accounts receivable, supplies, furniture, land, and buildings. | ||
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===b. Liability=== | ===b. Liability=== | ||
===c. Credit=== | ===c. Credit=== | ||
Revision as of 19:15, 2 August 2006
1. What is the difference between bookkeeping and accounting?
Bookkeeping refers only to the actual posting of financial transactions into the various journals and account ledgers (e.g., collecting the raw financial data). This provides the underlying foundation for a system of accounting, which accumulates and organizes the raw data into useful information.
2. Define the following terms:
a. Asset
An asset is an economic resource owned by the company that is expected to provide them future benefits. Examples include, but are not limited to, cash, accounts receivable, supplies, furniture, land, and buildings.
b. Liability
c. Credit
d. Debit
e. Posting
f. Trial balance
g. Voucher
h. Invoice
i. Interest
3. What is the difference between double-entry bookkeeping and single-entry bookkeeping?
4. What education is necessary to be a bookkeeper? What other education is helpful to a bookkeeping career?
6. Conduct an interview with your church treasurer, asking the following questions:
- a. How much time do you spend each week at your job as church treasurer?
- b. What do you do with the money collected in the offering plates?
- c. How do you keep track of who contributed how much money?
- d. What money is sent to the conference?
- e. What money is kept in our local church?
- f. Are your records ever reviewed by an accountant? How often?
- g. How do you report the church finances to the church board?
- h. How do you report the church finances to the conference?
Make arrangements with your church treasurer well ahead of time so that she has plenty of time to work you into her schedule. Be flexible in scheduling your guest's time with your club. It may be necessary to have "honor time" earlier or later in the meeting to accomodate her schedule. Remember (and remind your Pathfinders) that she is doing you a favor by taking time out of her schedule to help you with this requirement. You may wish to provide the questions to her in advance so she doesn't have to come up with the answers on the spot. Write the questions down on index cards and pass them out to your Pathfinders so that they can take turns asking them.
