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. A petty cash fund is replenished when the custodian submits receipts. Which account is debited during replenishment? → The appropriate expense accounts per receipts
2. Journals for bookkeeping are used to. → Show which ledger accounts are debited and credited
3. The owner withdraws $800 cash for personal use. Which account is debited? → Drawing (Withdrawals)
4. Gross profit is calculated as: → Net sales minus cost of goods sold
5. What does the term 'net income' represent? → Revenues minus expenses for the period
6. Which of the following is an example of an accrued liability requiring an adjusting entry? → Wages earned by employees but not yet paid
7. A company issues a $5,000 credit memo to a customer for returned goods. Which account is debited? → Sales Returns and Allowances
8. An employee receives a $5,000 bonus. Which withholding method uses a flat 22% federal income tax rate on supplemental wages up to $1 million? → Optional flat rate method
9. A business has $800 in Unearned Revenue. By year-end, $500 of services have been performed. The adjusting entry is: → Debit Unearned Revenue $500; Credit Service Revenue $500
10. Which account is credited when a company declares a cash dividend? → Dividends Payable
11. If ending Accounts Receivable on the bank reconciliation exceeds the book balance, the most likely cause is: → An NSF check not yet recorded in the books
12. Mark the journals that are special. → Sales journal
13. How is a contingent liability recorded if it is both probable and reasonably estimable? → Recorded as a liability and an expense on the financial statements
14. An account entry on the right side is referred to as. → Credit
15. A company collects $12,000 in advance for a 12-month service contract. After 3 months, how much should be reported as unearned revenue? → $9,000
16. Which inventory costing method is prohibited under IFRS but allowed under U.S. GAAP? → LIFO
17. Because__________, a double-entry system is more accurate. → All of the above
18. Which accounting principle requires that expenses be recognized in the same period as the revenues they helped generate? → Matching Principle
19. When a business collects cash in advance for services not yet performed, it records: → A debit to Cash and a credit to Unearned Revenue
20. Which account is credited when recording the adjusting entry for depreciation? → Accumulated Depreciation
21. A transposition error occurs when: → Digits within a number are reversed (e.g., $459 written as $495)
22. Which posting step follows recording a transaction in the general journal? → Transferring amounts to the general ledger
23. A business performs services and receives $300 cash immediately. How is revenue recorded? → Debit Cash, Credit Service Revenue
24. One of the functions of a ledger is to: → Both of the above
25. Which of the following is a source document for accounting? → Delivery note
26. Under the accrual basis, revenue from a December service billed in January should be recognized in: → December, when the service was performed
27. 22. Contra asset accounts and bank overdrafts typically have a debit balance. → False
28. A business pays $1,200 for six months of prepaid insurance. The correct journal entry is: → Debit Prepaid Insurance $1,200, Credit Cash $1,200
29. Which entry records the owner withdrawing cash from the business for personal use? → Debit Owner's Drawings; Credit Cash
30. Which internal control procedure helps prevent check fraud? → Requiring dual signatures on checks above a threshold