CB Bookkeeper study guide
CB Bookkeeper · Work through your exam, one topic at a time.
The Certified Bookkeeper (CB) credential is awarded by the American Institute of Professional Bookkeepers (AIPB), which describes itself as the bookkeeping profession's national association since 1987 and its national certifying authority. The designation is aimed at working bookkeepers, full-charge bookkeepers and accounting staff who want a marketable, verifiable credential and the letters "CB" after their name. The CB Bookkeeper study guide has 6 sections and about 1,737 words.
01Adjusting Entries
Adjusting entries are recorded at period end, before statements are prepared, to move the books onto the accrual basis: revenue when earned, expenses when incurred, regardless of when cash moves. The families are accrued revenues, accrued expenses, deferred (prepaid) expenses, deferred (unearned) revenues, and estimates such as depreciation and bad debt expense.
283 words, about 1 min02Correction of Accounting Errors
Errors of omission leave a transaction out entirely. Errors of commission post the right amount to the wrong account.
283 words, about 1 min03Payroll
Gross pay is hours times rate plus overtime premium, bonuses, and commissions. Employee withholdings include federal income tax, state and local income tax, FICA (Social Security with its annual wage base, plus Medicare with an additional high-earner rate), and voluntary deductions such as insurance, retirement, and garnishments.
282 words, about 1 min04Depreciation
Depreciation allocates the cost of a long-lived asset, less residual value, over its useful life. It is allocation, not valuation; book value rarely equals market value, and depreciation neither uses nor provides cash.
274 words, about 1 min05Inventory
A perpetual system updates inventory at every purchase and sale; a periodic system computes cost of goods sold only at period end as beginning inventory plus purchases minus ending inventory. Cost flow assumptions are specific identification, FIFO, LIFO, and weighted average.
315 words, about 2 min06Internal Controls and Fraud Prevention
COSO's five components are control environment, risk assessment, control activities, information and communication, and monitoring. Control activities include segregation of duties, proper authorization, adequate documentation, physical safeguards, and independent reconciliations.
300 words, about 2 min