CPB / BookKeeping Cheat Sheet 2026

The 30 highest-yield CPB / BookKeeping facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Journals for bookkeeping are used to. → Show which ledger accounts are debited and credited
2. Mark the journals that are special. → Sales journal
3. An account entry on the right side is referred to as. → Credit
4. Which inventory costing method is prohibited under IFRS but allowed under U.S. GAAP? → LIFO
5. Because__________, a double-entry system is more accurate. → All of the above
6. One of the functions of a ledger is to: → Both of the above
7. Which of the following is a source document for accounting? → Delivery note
8. 22. Contra asset accounts and bank overdrafts typically have a debit balance. → False
9. The task of recording, classifying, and summarizing financial transactions and events is known as accounting. → Bookkeeping
10. When a specific customer account is written off using the allowance method, the journal entry is: → Debit Allowance for Doubtful Accounts, Credit Accounts Receivable
11. 4. Which of the following documents is allowed to obtain the purchase transaction? → Purchase order
12. When a customer pays an outstanding invoice in full, which journal entry is correct? → Debit Cash, Credit Accounts Receivable
13. Under the allowance method, the entry to record estimated bad debt expense is: → Debit Bad Debt Expense, Credit Allowance for Doubtful Accounts
14. The transferring data from journals to ledgers is known as: → Posting
15. 14. What language do the abbreviations for debit and credit (Dr. and Cr.) come from and what do they mean? → Latin, debere and credere
16. You must ignore how banks refer to debits and credits while utilizing double-entry accounting. → True
17. 13. What section of the G.A.A.P. is the assumption that economic events can be identified with a specific unit of accountability? → Economic entity assumption
18. Under weighted-average cost (periodic), the average unit cost is calculated by dividing: → Total cost of goods available for sale by total units available for sale
19. Which tab on the Payment Edit screen allows you to establish disbursements after you've created a payment? → Create Disbursements tab
20. Under the periodic inventory system, Cost of Goods Sold is calculated using which formula? → Beginning Inventory + Purchases - Ending Inventory
21. Which of the following statements is not a financial statement? → Cash Book
22. When is a sale reported on the cash basis of accounting? → When the cash is received from the customer
23. Which of the following forms is used by employers to transmit Forms W-2, Wage and Tax Statements, to the Social Security Administration when filing by mail? → Form W-3
24. Under the perpetual inventory system, the Inventory account is updated: → After every purchase and sale transaction
25. 2. What does the term "accounts receivable" mean? → Amounts owed to a business by its debtors
26. 19. For an owner's draw, what is the normal entry? → Debit
27. What phrase is used to describe the usage of debits and credits to record a transaction in accounting records? → An entry
28. 9. What type of balance sheet differentiates between current and capital assets? → Classified
29. 12. Which type of accounting requires transactions to be recorded in the period in which they occur? → Accrual basis of accounting
30. What is the use of the petty cash reconciliation form? → To reconcile petty cash and paid vouchers to the authorized petty cash float.