1. What is the purpose of double-entry bookkeeping? 

2. What is the difference between an asset and a liability in accounting? 

3. How does the accrual accounting method differ from the cash accounting method? 

4. What are the four basic financial statements and their purposes? 

5. What is the accounting equation, and how does it relate to balance sheets? 

6. What is the difference between accounts payable and accounts receivable? 

7. What is depreciation, and why is it important in accounting? 

8. What is the difference between gross profit and net profit? 

9. Explain the concept of the chart of accounts and its importance in accounting systems. 

10. What is the purpose of a trial balance, and what does it indicate about the accuracy of financial records? 

11. How does the matching principle guide the recognition of expenses and revenues? 

12. What is goodwill in accounting, and how is it recorded on the financial statements?

Answer rating: 100% (QA)

1 The purpose of doubleentry bookkeeping is to ensure accurate and complete recording of financial transactions It involves recording each transaction ... View the full answer