Introduction To Book Keeping - JSS1 Business studies Past Questions and Answers - page 2
What does accurate bookkeeping help businesses avoid?
Legal compliance
Innovation
Cost reduction
Risk-taking
What do well-maintained financial records instill in investors and lenders?
Fear
Confidence
Doubt
Apathy
What is the primary purpose of bookkeeping?
To develop new products
To boost employee morale
To provide accurate financial information
Which of the following is NOT an essential quality of bookkeeping?
Accuracy
Creativity
Timeliness
Organization
Which statement summarizes a company's revenues and expenses over a period of time?
Balance sheet
Income statement
Cash flow statement
Statement of changes in equity
What role does attention to detail play in bookkeeping?
Ensuring accuracy
Encouraging risk-taking
Enhancing creativity
Boosting sales
What is the primary purpose of bookkeeping?
The primary purpose of bookkeeping is to accurately record, organize, and maintain financial transactions of a business in order to provide reliable financial information for decision-making, financial analysis, and regulatory compliance.
How does consistency contribute to effective bookkeeping practices?
Consistency ensures uniformity and comparability of financial data over time, making it easier to track changes, analyze trends, and make informed decisions based on reliable information.
Why is accurate record-keeping important in bookkeeping?
Accurate record-keeping is crucial because it provides reliable financial information that stakeholders, such as business owners, investors, and regulatory authorities, can trust for making decisions, ensuring compliance, and assessing the financial health of the business.
What role does reconciliation play in ensuring the accuracy of financial records?
Reconciliation involves comparing financial records, such as bank statements and accounts receivable/payable, to ensure they match. This process helps detect errors, discrepancies, or fraudulent activities, thereby ensuring the accuracy and integrity of financial data.