Bookkeeper Practice Test
Laws passed by congress in 1933 and 1934 gave the SEC final say on matters of
financial reporting by publicly owned corporations.
True/False - answer True
Tax planning is any activity associated with the preparation of tax returns and the audit
of those returns.
True/False - answer False
All financial statements submitted to the SEC by publicly owned corporations must
include an auditor's report prepared by
a) an internal auditor
b) the firm's managerial accountant
c) an independent certified public accountant
d) anyone in the accounting department - answerc
Amounts that a business must pay in the future are known as
a) accounts receivable
b) accounts payable
c) capital
d) expenses - answerb
If during the year total assets increased by $75,000 and total liabilities decreased by
$16,000 by how much did the owner's equity increase?
a) $91,000
b) $59,000
c) $75,000 - answera
When equipment is purchased for cash,
a) assets decrease and expenses increase
b) one asset increases and another asset decreases
c) assets and owner's equity increase
d) assets increase and liabilities decrease - answerb
On a typical chart of accounts, the accounts are arranged in the same order as they
appear in the trial balance.
True/False - answerTrue
The Income Statement is prepared first because the Net Income amount is a line item
on the Balance Sheet.
Laws passed by congress in 1933 and 1934 gave the SEC final say on matters of
financial reporting by publicly owned corporations.
True/False - answer True
Tax planning is any activity associated with the preparation of tax returns and the audit
of those returns.
True/False - answer False
All financial statements submitted to the SEC by publicly owned corporations must
include an auditor's report prepared by
a) an internal auditor
b) the firm's managerial accountant
c) an independent certified public accountant
d) anyone in the accounting department - answerc
Amounts that a business must pay in the future are known as
a) accounts receivable
b) accounts payable
c) capital
d) expenses - answerb
If during the year total assets increased by $75,000 and total liabilities decreased by
$16,000 by how much did the owner's equity increase?
a) $91,000
b) $59,000
c) $75,000 - answera
When equipment is purchased for cash,
a) assets decrease and expenses increase
b) one asset increases and another asset decreases
c) assets and owner's equity increase
d) assets increase and liabilities decrease - answerb
On a typical chart of accounts, the accounts are arranged in the same order as they
appear in the trial balance.
True/False - answerTrue
The Income Statement is prepared first because the Net Income amount is a line item
on the Balance Sheet.
