Keeping Financial Records

Question 1

A financial transaction that is added to a ledger balance is called a credit.

Revolt · Accepted Answer

T

Question 2

Katie keeps a record of her transactions in a notebook. Looking over her records for the past two weeks, Katie finds that her bank statement does not match her notebook, and she actually has more money than she thought she did. These are the relevant entries in Katie’s notebook:TransactionDebit ($)Credit ($)Beginning Balance 889.23Fence repair75.86---Dry cleaning32.38---Paycheck---140.91Gift from cousin---35.00Car payment178.66---Tax refund---66.18New chair161.55---Ending Balance 682.87However, Katie’s bank statement says that her ending balance is $707.10. Which of the following is a possible explanation for the discrepancy?

Revolt · Accepted Answer

Katie’s new chair was on sale for 15% off, making it cost $137.32, but Katie wrote down the before-sale price.

Question 3

Lyonell has kept track of his income and expenses for the week in the spreadsheet below. How much did Lyonell spend on theater tickets?

Revolt · Accepted Answer

$48.75

Question 4

Belinda keeps a record of her expenses for the week as shown:Bus fare $8.70Lunch out $7.35Hair cut $16Movie rental $5.95What is the total of Belinda’s expenses for the week?

Revolt · Accepted Answer

$38.00

Question 5

Explain why you would want to keep some, but not all, receipts as part of your financial records.

Revolt · Accepted Answer

You should keep receipts that document major purchases, warranties, returns, tax-deductible expenses, or other transactions that may need verification. You do not need to keep every small receipt after recording the expense because doing so can create unnecessary clutter.

Question 6

Kelly is reconstructing her expenses for the past two weeks. Here are the records of her expenses:TransactionCost ($)Camera164Film21Hiking boots113First aid kit12Radio27Overcoat55Tent86Kelly’s bank statement says that she has an ending balance of $349. What is Kelly’s starting balance?

Revolt · Accepted Answer

$827

Question 7

What does it mean to be “in the black?”

Revolt · Accepted Answer

You have more credits than debits.

Question 8

Describe the key features of a financial record keeping system.

Revolt · Accepted Answer

A financial record-keeping system records income and expenses in an organized way, including dates, descriptions, and amounts. It tracks credits, debits, and the running balance, and uses receipts and bank statements to verify transactions and reconcile the records.

Question 9

Niah earns $7.25 per hour at her part-time job that she works at 18 hours per week. To earn some extra money, Niah helps her friend out with her dog walking service. It is possible to walk more than one dog at a time, and Niah’s friend pays her $9 per dog for each half hour walked. Niah walks dogs on 3 different days this week, as listed below. What is the total amount of earnings Niah had this week?Monday: 3 dogs for 0.5 hoursWednesday: 2 dogs for 0.5 hours and 1 dog for 0.5 hoursThursday: 2 dogs for 1 hour

Revolt · Accepted Answer

$220.50

Question 10

Darius did not keep a perfect record of his expenses for the week. However, he has all but one of his receipts. Darius also knows the total amount of money that he has spent. He enters all of the information he has into his expense spreadsheet as shown below. How much did Darius spend on going bowling?

Revolt · Accepted Answer

$16.22

Keeping Financial Records Answers

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