BookKeeping Practice Test

Question 1

1. Accounts Payable is categorized as a/an ___________ in the _____________.

Accepted Answer

Current liability; Balance Sheet

Answer

Revenue; Income Statement

Answer

Current asset; Balance Sheet

Answer

Expense; Income Statement

Question 2

2. What does the term "accounts receivable" mean?

Accepted Answer

Amounts owed to a business by its debtors

Answer

Amounts owed by a business to its vendors

Answer

Amounts owed to a business by its employees

Answer

Amounts owed by a business to its creditors

Question 3

3. Which of the choices is a working capital item?

Accepted Answer

Accounts receivable

Answer

Bonds payable

Answer

Long-term investments

Answer

Fixed assets

Question 4

4. Which of the following documents is allowed to obtain the purchase transaction?

Accepted Answer

Purchase order

Answer

Purchase requisition

Answer

Invoice from supplier

Answer

Credit memo

Question 5

5. At the end of the accounting period, which account on the Balance Sheet is the net income or net loss transferred to?

Accepted Answer

Cash

Answer

Liability

Answer

Inventory

Answer

Accounts Receivable

Question 6

6. New Glory Corp. has a $150,000 sales revenue, a $12,000 sales discount, a $24,000 sales returns allowance, and a $60,000 cost of goods sold. What is New Glory Corp.'s net sales revenue?

Accepted Answer

$114,000

Answer

$100,000

Answer

$60,000

Answer

$86,000

Question 7

7. What is the name of the process of transferring information from the General Journal to the General Ledger?

Accepted Answer

Posting

Answer

Pasting

Answer

Journalizing

Answer

Transferring

Question 8

8. What is the average balance of an expense account?

Accepted Answer

Debit

Answer

Contraliability

Answer

Credit

Answer

None of the above

Question 9

9. What type of balance sheet differentiates between current and capital assets?

Accepted Answer

Classified

Answer

Gregarian

Answer

Keynesian

Answer

Normal

Question 10

10. In what ways do you calculate the Current Ratio?

Accepted Answer

subtract current assets from current liabilities

Answer

subtract long-term liabilities from current assets

Answer

subtract capital assets from current liabilities

Answer

subtract current liabilities from current assets