Bookkeeping MCQ Questions

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

Note:

60 questioned and answers are created.

Answer was highlighted by gray color.

Some  questions are copied by other web sites and especial thanks to them.

designed for Diploma in Accounting (IDM Nations Campus )