Certified Fraud Examiner (CFE) — Question 16

The heart of book keeping system is the ___________.

Answer options

• A. Asset
• B. Liability
• C. Checkbook
• D. Journal

Correct answer: C

Explanation

The correct answer is C, Checkbook, as it is essential for tracking transactions and managing funds. While Assets and Liabilities are important concepts in accounting, they are not the central operational tool like the Checkbook. The Journal is also essential but serves a different function in recording transactions rather than managing cash flow directly.