Bookkeeping Skills Test - Level 3

10 Questions | Total Attempts: 5249

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Bookkeeping Skills Test - Level 3

Welcome to Bookkeeping Skills Test - Level 3. If you can achieve 90% or better - then you have an advanced level of bookkeeping understanding.


Questions and Answers
  • 1. 
    What accounts are found in the balance sheet?
    • A. 

      Assets and liabilities

    • B. 

      Revenue and expenses

    • C. 

      Assets, liabilities and equity

    • D. 

      Expenses and assets

  • 2. 
    What statement is used to ensure debits equal credits?
    • A. 

      Trial Balance

    • B. 

      Balance Sheet

    • C. 

      Income Statement

  • 3. 
    The income statement shows:
    • A. 

      Expenses and income

    • B. 

      Income and cost of goods sold

    • C. 

      Income, cost of goods sold and expenses

    • D. 

      Just income

  • 4. 
    The accounts payable schedule shows:
    • A. 

      Vendors that owe the company money

    • B. 

      Vendors the company owes money to

    • C. 

      All of the above

    • D. 

      None of the above

  • 5. 
    • A. 

      Creating a separate ledger for each customer

    • B. 

      Creating many ledgers for each customer

    • C. 

      Creating a separate ledger for each invoice of every customer

  • 6. 
    Creating financial statements requires using:
    • A. 

      The balance sheet

    • B. 

      The income statement

    • C. 

      The trial balance

  • 7. 
    The income statement shows:
    • A. 

      Revenue less cost of goods sold

    • B. 

      Revenue less expenses

    • C. 

      Revenue less cost of goods sold, less expenses

    • D. 

      None of the above

  • 8. 
    The balance sheet presents:
    • A. 

      The listing of assets and liabilities

    • B. 

      The financial picture of the company at a specific point in time

    • C. 

      The listing of equity only

    • D. 

      The listing of revenues and expenses

  • 9. 
    The most  important financial statement for a business owner is:
    • A. 

      Balance Sheet

    • B. 

      Trial Balance

    • C. 

      Equity Statement

    • D. 

      Income Statement

  • 10. 
    Financial institutions, lenders and investors value which financial statement the most:
    • A. 

      Balance sheet

    • B. 

      Trial balance

    • C. 

      Income statement

    • D. 

      Depends on the situation