1. In a
manual bookkeeping system, transactions are first recorded in a __________.
Cash book
Journal
Ledger
None of them
2. A journal _________ includes the date,
accounts, and amounts.
Entry
Number
Voucher
Book
3. In a manual bookkeeping system, each
amount in a journal is posted to an _____________.
Ledger
Account
Report
Loss and profit
4. A company's ___________ ledger
contains all of the accounts such as Rent Expense, Supplies, and Interest
Payable.
Sales
Purchase
General
None of them
5. An internal document that is prepared
to prove that the total of all the debit balances is equal to the total of all
the credit balances is a _________ ___________.
Trial
balance
Balance sheet
Income statement
None of them
6. Historically, the final step of the
_______________'s responsibilities was to prepare a trial balance.
Accountant
Auditor
Bookkeeper
Cashier
7. Accounting _____________ has made the
recording of transactions much more efficient.
Books
Software
Notes
Theory
8. Accounting software has eliminated
many of the math and recording ________ that were common with a manual system.
Errors
Questions
Answers
All of them
9. Because at least two accounts are
involved in every transaction, the bookkeeping system is referred to as
_________ entry bookkeeping.
Single
Double
Triple
Quad
10. A
_________ entry is entered on the left side of an account.
Debit
Credit
Double
Journal
11. A
_________ entry is entered on the right side of an account.
Debit
Credit
Double
Journal
12. A typical
entry in the account Wages Expense will be a
Debit
Credit
Double
Journal
13. A typical
entry in the account Sales will be a
Debit
Credit
Double
Journal
14. A debit
will cause the balance in a liability account to
Decrease
Increase
Write off
Accumulated
15. When a
check is written, the company's Cash account should be
Debit
Credit
Double
Journal
16. When cash
is received, the company's Cash account should be
Debit
Credit
Double
Journal
17. Invoices from vendors (suppliers) which
are due in 30 days should be credited to Accounts ___________
Payable
Receivable
Transferable
Purchase
18. The __________ of accounts is a listing
of the general ledger accounts in which amounts can be posted.
Reports
Journal
Ledger
Chart
19. The chart of accounts has two broad
types of accounts: balance sheet accounts and __________ ______________ accounts.
Income
statement
Balance sheet
Trial balance
Loss and profit
20.
Historically, the financial statements have been
prepared by an ______________
Accountant
Auditor
Bookkeeper
Cashier
21.
Cost of Goods = Beginning Inventory + Purchases
=
Ending inventory
Gross profit
Cash flow chart
All of above
22.
Income – Expenses=
Gross profit
Net profit
Both of above
Net income or loss
23.
Assets =_________________ + Equity
Liabilities
Capital
Long term debentures
Bank over-Draft
24.
Common Stock is type of
Assets
Liabilities/Equity
Income
Expenses
25.
Note Payable is type of
Assets
Liabilities/Equity
Income
Expenses
26.
Gain on Sale of Asset is type of
Assets
Liabilities/Equity
Income
Expenses
27.
Sales is type of
Assets
Liabilities/Equity
Income
Expenses
28.
Retained Earnings is type of
Assets
Liabilities/Equity
Income
Expenses
29.
Salaries is type of
Assets
Liabilities/Equity
Income
Expenses
30.
Cash in Checking is type of
Assets
Liabilities/Equity
Income
Expenses
31.
Sales Tax Payable is type of
Assets
Liabilities/Equity
Income
Expenses
32.
Computer Equipment is type of
Assets
Liabilities/Equity
Income
Expenses
33.
Chevy pickup is type of
Assets
Liabilities/Equity
Income
Expenses
34.
Gas / Oil is type of
Assets
Liabilities/Equity
Income
Expenses
35.
Dividends is type of
Assets
Liabilities/Equity
Income
Expenses
36.
Asset , the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
37.
Liability , the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
38.
Equity ,
the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
39.
Income , the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
40.
Expense , the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
41.
Net Income , the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
42.
Net Loss , the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
43.
Bank Overdraft , the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
44.
Beginning Inventory , the normal status would be
,
Debit
Credit
Double entry in General journal
Not in Ledger book
45.
Ending Inventory , the normal status would be ,
Debit
Credit
Double entry in General journal
Not in Ledger book
46.
Debit – Accounts Receivable or Returned Checks
Receivable - $ 37.0
Credit – Checking - $ 37.00
A $37.00 cash from a customer is returned non-sufficient funds.
A $37.00 check from a customer is not returned non-sufficient funds.
A $37.00 check from a customer
is returned non-sufficient funds.
None of them
47.
Debit – Fixed Assets - $450.00
Credit – Checking - $450.00
A purchase of a desk and office
chair for $450.00.
A
purchase of a desk and office chair for accrual of $450.00.
A
purchase of a desk and office chair for expense of $450.00.
None
of the above
48.
Debit – Accounts Receivable - $202.69
Credit - Sales Tax Payable - $7.69
Credit - Income - $195.00
A
taxable charge sale of $ 195.00 plus $ 7.00 sales tax.
A taxable charge sale of $
195.00 plus $ 7.69 sales tax.
A
taxable charge sale of $ 195.00 plus $ 7.69 purchase tax.
None
of the above
49.
Debit – Checking - $250.00
Credit – Accounts Receivable - $250.00
A customer makes a payment on
their account for $250.00
A
customer makes new cash on their account for $250.00
A
customer makes cash from personal income on their account for $250.00
None
of the above
50.
Debit – Depreciation Building - $2500.00
Credit – provision for Depreciation
Building - $2500.00
Write –off the assets value for
maintenance.
Write –off the assets value for sales.
Write –off the assets value for transfer
between others within group.
Write –off the assets value for future purchase.
51.
Debit – rent prepaid - $500.00
Credit – rent - $500.00
Paid rent for the building for the past
month.
Paid rent for the building for the next
month.
Paid rent for the building for the next month and set expenses balance
in current month.
None of the above
52.
Debit – Bad Debts - $5000.00
Credit – Mr.Sarawanan - $5000.00
Error in recording transaction. So need to
fix with Public Journal.
Mr.Sarawanan couldn’t pay balance.
Temporary transfer balance to expense
account.
No reason.
53.
Provision for doubtful debts is a ,
Fixed assets
Current assets
Current liability
Both A and B
54.
Customer sent the goods back to the company. So
where the proper account to debit them…?
Sales Return account
Sales account
Debtor account
Inventory account
55.
When purchase return to supplier, (not accrual
basis) the,
Cash account –debit
Creditor account –debit
Inventory account –debit
None of the above
56.
Example for long term liability is,
Bank Overdraft
Lease for one year
Mortgage
None of the above
57.
The donations paid are ,
Financial provisions
It can be reduced by the pretty cash
account.
Debit to marketing expense account
None of the above
58.
Select false statement.
Rent received
Discount received
Interest
Wages
59.
Select administrative expenses
Advertising
Carriage out
Insurance
Discount given
60.
Transaction is completely left out from the
account.
Error of principle
Error of omission
Error of commission
Error of reversal
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