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Bookkeeping Certification questions and answers rated A+ by experts 2024/2025
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Bookkeeping Certification questions and answers rated A+ by experts 2024/2025
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BookkeepingCertification
The
review
of
financial
statements
to
assess
their
fairness
and
adherence
to
GAAP
is
-
ANSauditing
An
independent
accountant
who
performs
financial
audits
is
a
-
ANSCertified
Public
Accountant
(CPA)
To
become
a
CPA,
an
individual
-
ANSmust
have
a
certain
number
of
college
credits
in
accounting
courses.
pass
the
Uniform
CPA
Examination.
fulfill
the
experience
requirements
of
the
state
of
practice.
Which
of
the
following
is
not
a
service
typically
provided
by
a
public
accounting
firms?
-
ANSInvesting
services
The
entity
that
has
final
authority
over
the
financial
reporting
of
publicly
owned
corporations
is
the
-
ANSSecurities
and
Exchange
Commission
(SEC).
Which
of
the
following
is
not
a
provision
of
the
Sarbanes-Oxley
Act?
-
ANSThe
Sarbanes-Oxley
Act
allows
accountants
from
offering
a
broad
range
of
consulting
services
to
publicly
traded
companies
that
they
audit.
The
following
are
all
government
agencies
except
-
ANSAmerican
Institute
of
Certified
Public
Accountants
(AICPA).
The
following
are
all
characteristics
of
a
sole
proprietorship
except:
-
ANSA
sole
proprietorship
is
legally
separate
from
its
owner.
The
financial
statements
submitted
by
a
corporation
to
the
SEC
include
the
auditor's
report.
The
auditor's
report:
-
ANSconfirms
that
the
financial
information
is
prepared
in
conformity
with
generally
accepted
accounting
principles.
The
group
of
accounting
educators
who
perform
research
to
determine
the
possible
effects
on
financial
reporting
and
the
economy
and
then
offer
their
opinions
about
proposed
FASB
statements
is
the
-
ANSAmerican
Accounting
Association
(AAA).
When
J.
Simmons,
the
owner,
invests
in
her
business,
the
transaction
would
be
entered
on
the
-
ANSright
side
of
the
J.
Simmons,
Capital
T
account.
Modern
products
paid
cash
to
a
creditor.
To
record
this
transaction,
the
accountant
would
-
ANSdebit
Accounts
Payable
and
credit
Cash.
The
normal
balance
of
an
account
is
the
-
ANSincrease
side
of
the
account. Which
of
the
following
types
of
accounts
normally
have
debit
balances?
-
ANSExpenses
and
assets
Which
of
the
following
groups
contain
only
accounts
that
normally
have
credit
balances?
-
ANSFees
Income
and
John
Smith,
Capital
Which
of
the
following
decreases
owner's
equity?
-
ANSExpenses
If
the
trial
balance
totals
are
not
equal,
the
error
may
have
been
caused
by
a
transposition
if
the
difference
is
divisible
by
-
ANS9
The
three
financial
statements
are
linked
together
because
the
-
ANSnet
income
from
the
income
statement
is
used
on
the
statement
of
owner's
equity
and
the
ending
balance
of
the
capital
account,
computed
on
the
statement
of
owner's
equity,
is
used
on
the
balance
sheet.
Which
of
the
following
accounts
is
not
a
permanent
account?
-
ANSSalaries
Expense
The
Net
Income
amount
from
the
Income
Statement
is
used
as
a
line
item
on
which
statement?
-
ANSthe
statement
of
owner's
equity
Amounts
that
a
business
must
pay
in
the
future
are
known
as
-
ANSaccounts
payable
The
balance
sheet
is
also
called
-
ANSthe
statement
of
financial
position
When
the
owner
invests
cash
in
a
business,
-
ANSassets
and
owner's
equity
increase.
When
equipment
is
purchased
on
credit,
-
ANSassets
and
liabilities
increase.
When
a
business
sells
services
on
credit
-
ANSassets
increase
and
revenues
increase.
When
a
business
collects
an
account
receivable
-
ANStotal
assets
do
not
change.
When
the
firm
pays
its
utility
bill
upon
receipt
of
that
bill
-
ANSassets
decrease
and
expenses
increase.
When
the
owner
withdraws
cash
for
personal
use
-
ANSassets
decrease
and
owner's
equity
decreases.
Assume
that,
after
analyzing
its
business
transaction,
a
firm
has
the
following
ending
balances:
accounts
payable
$3,400,
accounts
receivable
$2,000,
cash
$1,000,
capital
$3,600,
equipment
$3,000,
prepaid
rent
$600,
and
supplies
$400.
What
is
the
total
amount
of
assets
that
will
be
reported
on
the
firm's
balance
sheet?
-
ANS$7,000
Assume
that
a
firm
has
the
following
information
in
its
analysis
of
its
business
transactions
during
its
first
year
of
business:
fees
income
of
$7,000,
an
investment
by
the
owner
of
$5,000,
salaries
expenses
of
$4,000,
and
withdrawals
of
$2,000.
What
is
the
total
amount
of
owner's
equity
that
will
be
reported
on
the
firm's
balance
sheet?
-
ANS$6,000
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