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Bookkeeping Certification Practice Test-solved
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Bookkeeping Certification Practice Test
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Bookkeeping Certification Practice TestSpringville Distributors made sales using a list prie of $880 and a trade discount of 30%.
What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616 - Answer -D
Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange
Commission (SEC) final say on matters of financial reporting by publicly owned
corporations.
A) True
B) False - Answer -A
When equipment is purchased for cash,
A) one asset increases and another asset decreases
B) assets decrease and expenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease - Answer -A
Tax planning is any activity associated with the preparation of tax returns and the audit
of those returns.
A) True
B) False - Answer -B
The frequency of deposits of federal income taxes withheld and social security and
Medicare taxes is determined by the amount owed.
A) True
B) False - Answer -A
Which of the following is not a reason why the book balance of cash may not agree with
the balance on the bank statement?
A) Outstanding checks
B) End of the month
C) Service charges and other deductions
D) Deposit in transit - Answer -B
, Most cash transactions involve checks.
A) True
B) False - Answer -A
The entry to transfer a net loss to the owner's capital account would include a debit to
A) the owner's capital account and a credit to Income Summary
B) the owner's capital account and a credit to Cash
C) Income Summary and a credit to the owner's capital account
D) the owner's drawing account and a credit to the owner's capital account - Answer -A
The maximum base for the social security tax is the same as that of the Medicare tax.
A) True
B) False - Answer -B
A subsidiary ledger is a ledger that contains accounts of a single type.
A) True
B) False - Answer -A
The Accounts Payable account has a $3,000 credit balance. An entry for the payment of
the $1,000 on the amount owed is recorded and posted. The new balance of the
Accounts Payable account is
A) a $2,000 debit balance
B) a $4,000 debit balance
C) a $2,000 credit balance
D) a $4,000 credit balance - Answer -C
Which of the following need not be completed separately if a worksheet is prepared?
A) a balance sheet
B) a trial balance
C) an income statement
D) a statement of the owner's equity - Answer -B
Amounts that a business must pay in the future are known as
A) accounts payable
B) accounts receivable
C) captial
D) expenses - Answer -A
The balance of a customer's account in the accounts receivable ledger is circled to
show that it is a debit amount.
A) True
B) False - Answer -B
All financial statements submitted to the SEC by publicly owned corporations must
include an auditor's report prepared by
A) an internal auditor
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