An accountant or bookkeeper has to record each transaction. This ensures that good records are kept and financial reports are produced which accurately represent the business.
The Ten Most Common Basic Accounting Transactions
Here is a quick summary of the ten common basic accounting transactions, together with a link to the full lesson on each one.
Please note that the lessons in the links below are basic introductory lessons which show how each transaction affects the accounting equation, and that these do not yet cover double entries (debits and credits).
Before you start, I would recommend to time yourself to make sure that you not only get the questions right but are completing them at the right speed.
Difficulty Rating: Beginner
Quiz length: 2 questions
Time limit: 3 minutes
Important:The solution sheet on the following page only shows the solutions and not whether you got each of the questions right or wrong. So before you start, get yourself a piece of paper and a pen to write down your answers. Once you're done with the quiz and writing down your answers, click the Check Your Answers button at the bottom and you'll be taken to our page of solutions.
The list above represents all the basic accounting transactions we have.
Once you understand how they work, you'll be well on your way to becoming a star in accounting.