Bookkeeper Aptitude Test

The given journal entry accurately represents a taxable charge sale of $195.00 plus $7.69 sales tax. The debit to Accounts Receivable for $202.69 represents the amount owed by the customer for the sale. The credit to Sales Tax Payable for $7.69 represents the amount of sales tax that needs to be paid to the tax authorities. The credit to Income for $195.00 represents the revenue earned from the sale. Therefore, the statement is true.

The equation "Income - Expenses = Net Income, Profit" is a basic accounting formula used to calculate the net income or profit of a business. It represents the difference between the total income earned by a business and the total expenses incurred. If the result is positive, it indicates a net income or profit, while a negative result indicates a net loss. Therefore, the correct answer is Net Income, Profit.

The given journal entry is false. When purchasing a desk and office chair for $450.00, the correct journal entry would be a debit to Fixed Assets for $450.00 and a credit to Cash or Accounts Payable for $450.00, depending on whether the purchase was made in cash or on credit. The entry should not include Checking as a debit account.

The given journal entry accurately records the transaction of a $37.00 check from a customer being returned due to insufficient funds. It debits the Accounts Receivable or Returned Checks Receivable account for $37.00, representing the amount that was originally credited to the account when the check was received. It then credits the Checking account for $37.00, reflecting the decrease in the customer's balance due to the returned check. This journal entry accurately reflects the impact of the transaction on the accounts involved.

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The given equation represents the fundamental accounting equation, which states that the total assets of a company are equal to the sum of its liabilities and equity. This equation is the basis for double-entry bookkeeping and helps to ensure that all financial transactions are properly recorded. Therefore, the correct answer is "Liability" as it completes the equation.

The equation for calculating the Cost of Goods is the sum of the Beginning Inventory and Purchases, minus the Ending Inventory. This is because the Cost of Goods is the total cost of the goods that were sold during a specific period, and the Ending Inventory represents the value of the goods that remain unsold at the end of that period. Therefore, subtracting the Ending Inventory from the sum of the Beginning Inventory and Purchases gives us the cost of the goods that were sold.

The bank statement reconciled balance at January 31 is $740.98. This is calculated by starting with the opening balance of $547.43 and adding the deposits made on January 4th ($100.00) and January 15th ($350.00). Then, subtracting the checks written on January 2nd ($50.13), January 7th ($10.09), January 19th ($250.00), and January 26th ($101.19). Finally, subtracting the monthly service charge of $5.00. The ending balance on the bank statement is $581.02, but after reconciling it with the check register, the correct balance is $740.98.

Assets, expenses, net loss, and beginning inventory are normally classified as debit accounts. Debit accounts are those that increase with debits and decrease with credits. Assets represent resources owned by the company, expenses are costs incurred in the normal course of business, net loss is the result of expenses exceeding revenues, and beginning inventory is the value of inventory at the start of an accounting period.

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