Bookkeeper Practice Test Question and answers 100% correct 2024
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Course
Bookkeeping
Institution
Bookkeeping
Bookkeeper Practice Test Question and answers 100% correct 2024 Bookkeeper Practice Test, AAT Intro to Bookkeeping
Laws passed by congress in 1933 and 1934 gave the SEC final say on matters of financial reporting by publicly owned corporations.
True/False - correct answer True
Bookkeeper Practice Test, AAT Intro to
Bookkeeping
Laws passed by congress in 1933 and 1934 gave the SEC final say on
matters of financial reporting by publicly owned corporations.
True/False - correct answer ✔True
Tax planning is any activity associated with the preparation of tax returns and
the audit of those returns.
True/False - correct 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 - correct answer ✔c
Amounts that a business must pay in the future are known as
a) accounts receivable
b) accounts payable
c) capital
d) expenses - correct answer ✔b
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 - correct answer ✔a
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 - correct answer ✔b
On a typical chart of accounts, the accounts are arranged in the same order
as they appear in the trial balance.
True/False - correct answer ✔True
The Income Statement is prepared first because the Net Income amount is a
line item on the Balance Sheet.
True/False - correct answer ✔False
Debits are used to record
a) increases in assets
b) increases in revenue
c) increases in owner's equity
d) increases in liability - correct answer ✔a
The process of transferring the data from the journal into the ledgers is called:
a) footing
b) posting
, c) transponding
d) journalizing - correct answer ✔b
The Accounts Payable account has a $3000 credit balance. An entry for the
payment of $1000 on the amount owed is recorded and posted. The new
balance is
a) $2000 credit
b) $4000 credit
c) $2000 debit
d) $4000 debit - correct answer ✔a
The cost of a long-term asset, such as equipment, is transferred to expense
as it is used during its life
True/False - correct answer ✔True
Which of the following need not be completed separately if a worksheet is
prepared?
a) a trial balance
b) an income statement
c) a balance sheet
d) a statement of owner's equity - correct answer ✔a
The entry to close the revenue account Fees Income requires a debit to that
account.
True/False - correct answer ✔True
The entry to transfer a net loss to the owner's capital account would include a
debit to
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