Practice Test Geeks(CB) Certified Bookkeeper Practice Test
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Quality Assurance & Compliance Flashcards

7 cards from real CB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Quality Assurance & Compliance flashcards as text

  1. A company uses a voucher system in its accounts payable process. What is the primary purpose of this system?

    Answer: To provide written authorization and a paper trail for every payment made

    A voucher system documents and authorizes each payment, creating an auditable paper trail that reduces the risk of unauthorized disbursements.

  2. Which of the following payroll records must employers provide to employees by January 31 of each year?

    Answer: Form W-2

    Employers must furnish Form W-2 (Wage and Tax Statement) to each employee by January 31 for the prior calendar year.

  3. A bookkeeper records $1,540 as $1,450. This type of error is called a:

    Answer: Transposition error

    A transposition error occurs when two digits within a number are reversed, and the resulting difference is always divisible by 9.

  4. Which of the following best describes the purpose of an audit trail in bookkeeping?

    Answer: To provide a chronological record of transactions that can be traced from source documents to financial statements

    An audit trail is a sequential record linking source documents through journals and ledgers to financial statements, enabling verification of any transaction.

  5. A business classifies a capital expenditure as an operating expense. What is the immediate effect on the financial statements?

    Answer: Net income is understated and total assets are understated

    Expensing a capital item immediately reduces net income (understated) and fails to record the asset, leaving total assets understated.

  6. Which of the following independent contractor thresholds triggers the requirement to issue a Form 1099-NEC for the tax year 2024?

    Answer: Payments totaling $600 or more

    Businesses must issue Form 1099-NEC to any non-employee who was paid $600 or more for services during the tax year.

  7. During a compliance review, it is found that petty cash vouchers frequently lack receipts. Which corrective action best addresses this internal control weakness?

    Answer: Implement a policy requiring original receipts for all petty cash disbursements before reimbursement

    Requiring original receipts as a condition of reimbursement enforces documentation standards and deters misuse of petty cash funds.