Accounting Basics The Accounting Cycle and Bookkeeping Syllabus

The Accounting Cycle and Bookkeeping syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for The Accounting Cycle and Bookkeeping in Accounting Basics, not a summary of it.

1. 1

   Accounts, Debits, and Credits

   3 topics

   • The Chart of Accounts
   • Rules of Debits and Credits
   • Double-Entry Bookkeeping System
2. 2

   Recording Transactions in the Journal

   3 topics

   • Source Documents
   • The General Journal
   • Special Journals
3. 3

   Posting to the Ledger

   3 topics

   • The General Ledger
   • Subsidiary Ledgers
   • Running Balance Ledger Format
4. 4

   The Trial Balance

   2 topics

   • Preparing the Unadjusted Trial Balance
   • Locating and Correcting Errors
5. 5

   Adjusting Entries

   4 topics

   • Accrual vs. Cash Basis Accounting
   • Types of Adjustments
   • Depreciation of Fixed Assets
   • Adjusted Trial Balance
6. 6

   The Worksheet

   2 topics

   • Purpose and Structure of the Worksheet
   • Extending Balances to Financial Statement Columns
7. 7

   Closing the Books

   4 topics

   • Temporary vs. Permanent Accounts
   • Closing Entries
   • Post-Closing Trial Balance
   • Reversing Entries

The Accounting Cycle and Bookkeeping flashcards for Accounting Basics

18 of 50 cards from the The Accounting Cycle and Bookkeeping deck — real questions with worked answers.

1. What is the Chart of Accounts?

   A complete, organized list of all the accounts a business uses in its general ledger, each with a unique account number/code, grouped by category (assets, liabilities, equity, revenue, expenses).

2. In what order are accounts typically arranged in the Chart of Accounts?

   In financial-statement order: balance sheet accounts first (assets, then liabilities, then equity) followed by income statement accounts (revenues, then expenses).

3. What is the fundamental accounting equation that underlies double-entry bookkeeping?

   $\text{Assets} = \text{Liabilities} + \text{Owner's Equity}$

4. State the normal balance side for each of the five account types (Assets, Liabilities, Equity, Revenue, Expenses).

   Assets = debit; Liabilities = credit; Equity (capital) = credit; Revenue = credit; Expenses = debit.

5. What are the rules of debits and credits for increasing each account type?

   Debit increases Assets and Expenses; Credit increases Liabilities, Equity, and Revenue. The opposite side decreases each.

6. How do debits and credits affect the owner's Drawing (withdrawals) account?

   Drawings have a normal debit balance; a debit increases withdrawals and a credit decreases them (it is a contra-equity account that reduces owner's equity).

7. What is the core principle of the double-entry bookkeeping system?

   Every transaction affects at least two accounts, with total debits always equal to total credits, keeping the accounting equation in balance.

8. In double-entry bookkeeping, why must total debits equal total credits after every transaction?

   Because each transaction has a dual effect that preserves the equation $\text{Assets} = \text{Liabilities} + \text{Equity}$; equal debits and credits keep both sides equal.

9. What is a source document in accounting?

   The original written evidence of a business transaction (e.g., invoice, receipt, check, purchase order) that provides the data and proof for recording a journal entry.

10. Give three common examples of source documents.

    Sales invoices, purchase invoices, official receipts, checks/check stubs, bank statements, credit/debit memos, and cash register tapes (any three).

11. What is the General Journal?

    The book of original entry where transactions are first recorded in chronological order, showing the date, accounts debited and credited, amounts, and an explanation.

12. What information does a complete general journal entry contain?

    The transaction date, account titles (debit listed first, credit indented below), the debit and credit amounts, a posting reference, and a brief explanation/narration.

13. What is a compound journal entry?

    A journal entry that involves more than two accounts—i.e., more than one debit and/or more than one credit—while total debits still equal total credits.

14. What are special journals and why are they used?

    Journals designed to record high-volume, repetitive transactions of one type, saving time and reducing postings. Common ones: sales journal, purchases journal, cash receipts journal, and cash payments (disbursements) journal.

15. Which type of transaction is recorded in the Sales Journal?

    Only credit (on-account) sales of merchandise. Cash sales and non-merchandise sales are recorded elsewhere.

16. Which type of transaction is recorded in the Cash Receipts Journal?

    All transactions involving the receipt of cash, such as cash sales, collections from customers, and other cash inflows.

17. What is the General Ledger?

    The complete collection of all a company's accounts, where journal entries are posted and summarized; it is the book of final entry used to prepare the trial balance and financial statements.

18. What does 'posting' mean in the accounting cycle?

    Transferring the debit and credit amounts from the journal to the appropriate individual accounts in the general ledger.

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