List and describe the three main activities of bookkeeping.

QUESTION 9
The Cash Book records all cash receipts and cash payments, which constitute a significant portion of a business's daily financial transactions. While Sales Book and Purchase Journal also record daily transactions, the Cash Book covers a broader range of daily financial activities.

The correct option is B.

QUESTION 10
Small businesses keep records of goods purchased on credit in a Purchase Journal. The Cash Book is for cash transactions, a receipt book records cash received, and a sales journal records credit sales.

The correct option is D.

QUESTION 11
Below are the three main activities of bookkeeping:

• a. Identifying types of transactions and records: This involves recognizing financial events that affect the business and gathering relevant source documents like invoices or receipts. It's the initial step of determining what needs to be recorded.
• b. Analysing the types of transactions and the correct records which each transaction is written in: This step involves examining the identified transactions to determine which accounts are affected (e.g., assets, liabilities, revenue, expenses) and selecting the appropriate journal (e.g., cash book, sales journal, purchase journal) or ledger account for recording.
• c. Recording of the transactions: This is the process of entering the analyzed transactions chron