Bookkeeping Skills Test Questions And Answers
(128).jpg "Bookkeeping Skills Test Questions And Answers - Quiz")
Test Your Bookkeeping Skills with Our Quiz! Think you have what it takes to balance the books and keep finances in order? This quiz is designed to put your bookkeeping skills to the test! With questions covering essential bookkeeping concepts, from ledger entries to financial statements, this quiz is perfect for accounting professionals, students, or anyone looking to sharpen their bookkeeping knowledge. So, grab your virtual ledger and let's dive into the world of credits, debits, and accurate record-keeping!
Bookkeeping Skills Questions and Answers
- 1.
A source document is:
- A.
Proof of a certain transaction
- B.
Paperwork that applies to bookkeeping
- C.
Both A & B
- D.
None of the above
Correct Answer
C. Both A & BExplanation
A source document is both proof of a certain transaction and paperwork that applies to bookkeeping. It serves as evidence of a business transaction and provides the necessary information for recording the transaction accurately in the books. This includes invoices, receipts, purchase orders, bank statements, and other documents that support the financial activities of a business. By having both characteristics, a source document ensures the accuracy and reliability of the bookkeeping process.Rate this question:
-
- 2.
Examples of bookkeeping forms are:
- A.
General Ledger, General Journal
- B.
General Journal, General Ledger, Bank Reconciliation
- C.
Just the General Journal
- D.
None of the above
Correct Answer
B. General Journal, General Ledger, Bank ReconciliationExplanation
The correct answer is General Journal, General Ledger, Bank Reconciliation. This answer is correct because these are all examples of bookkeeping forms. The general journal is used to record all financial transactions, the general ledger is a record of all accounts and their balances, and bank reconciliation is the process of comparing a company's records with the bank's records to ensure accuracy.Rate this question:
-
- 3.
If an asset and/or expense account is debited, it is:
- A.
Decreased
- B.
Increased
Correct Answer
B. IncreasedExplanation
When an asset and/or expense account is debited, it means that there has been an increase in the balance of that account. Debiting an asset account indicates an increase in the value or amount of assets owned by the company. Similarly, debiting an expense account signifies an increase in the expenses incurred by the company. Therefore, the correct answer is "Increased."Rate this question:
-
- 4.
If a revenue account is increased, it is:
- A.
Credited
- B.
Debited
- C.
Both
- D.
Neither 1 nor 2
Correct Answer
A. CreditedExplanation
When a revenue account is increased, it means that there is an increase in the income or earnings of a business. In accounting, increases in revenue are recorded by crediting the revenue account. This means that the revenue account is credited to reflect the increase in income. Therefore, the correct answer is "Credited".Rate this question:
-
- 5.
Debits and Credits should balance in a general journal entry:
- A.
No
- B.
Yes
Correct Answer
B. YesExplanation
In accounting, debits and credits are used to record transactions. Each transaction must have equal debits and credits to ensure that the accounting equation (Assets = Liabilities + Equity) remains in balance. This balance is necessary for accurate financial reporting and to ensure that all transactions are properly recorded. Therefore, the correct answer is "Yes" as debits and credits should balance in a general journal entry.Rate this question:
-
- 6.
The Chart of Accounts is comprised of how many account groups?
- A.
4
- B.
5
- C.
6
- D.
8
Correct Answer
B. 5Explanation
The Chart of Accounts is comprised of five account groups. This means that there are five main categories or classifications in which accounts are grouped in the Chart of Accounts. These groups help organize and classify different types of accounts based on their nature and purpose. Having five account groups allows for a more efficient and systematic recording and reporting of financial transactions within an organization.Rate this question:
-
- 7.
The Chart of Accounts is used to:
- A.
Properly classify and record transactions.
- B.
Decide if they are assets or liabilities.
- C.
Determine if they belong to revenue accounts.
- D.
None of the above
Correct Answer
A. Properly classify and record transactions.Explanation
The Chart of Accounts is a tool used to properly classify and record transactions. It helps in organizing financial information by categorizing transactions into different accounts, such as assets, liabilities, and revenue accounts. By using the Chart of Accounts, businesses can accurately track and report their financial activities, making it easier to analyze and make informed decisions.Rate this question:
-
- 8.
An Asset is:
- A.
Refers to amounts that are owed to others
- B.
Refers to items that are owned
- C.
Refers to amounts earned as revenue
- D.
All of the above
Correct Answer
B. Refers to items that are ownedExplanation
The correct answer is "Refers to items that are owned". An asset is something that an individual or a company owns and has value. It can be tangible, such as property or equipment, or intangible, such as patents or trademarks. Assets are recorded on a balance sheet and are considered valuable resources that can generate future economic benefits.Rate this question:
-
- 9.
Expenses are those items that are:
- A.
Direct costs for producing goods
- B.
Costs associated with operating a business
Correct Answer
B. Costs associated with operating a businessExplanation
The correct answer is "Costs associated with operating a business." Expenses refer to the costs incurred in running a business, such as rent, utilities, salaries, marketing expenses, and other overhead costs. These expenses are necessary for the day-to-day operations and maintenance of the business, and they are subtracted from the revenue to calculate the profit or loss. On the other hand, direct costs for producing goods are related to the costs directly involved in manufacturing or producing the goods, such as raw materials and labor.Rate this question:
-
- 10.
To journalize business transactions refers to:
- A.
Recording them in the general journal
- B.
Recording them in the general ledger
- C.
Organizing the company paperwork
- D.
None of the above
Correct Answer
A. Recording them in the general journalExplanation
To journalize business transactions refers to recording them in the general journal. The general journal is a book of original entry where all transactions are initially recorded in chronological order. This process involves documenting the details of each transaction, such as the date, accounts involved, and amounts. By journalizing transactions, businesses can maintain an accurate record of their financial activities and ensure proper documentation for future reference and analysis. Journalizing is an essential step in the accounting cycle and provides the foundation for posting entries to the general ledger and preparing financial statements.Rate this question:
-
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Apr 03, 2024Quiz Edited by
ProProfs Editorial Team -
Oct 09, 2011Quiz Created by
Sus12
Back to top