Practice Test GeeksCPB / BookKeeping Practice Test
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Bookkeeping Flashcards

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

Read the first 7 Bookkeeping flashcards as text

  1. Which inventory costing method assumes the most recently purchased items are sold first?

    Answer: LIFO

    LIFO (Last-In, First-Out) assumes the last items purchased are the first items sold.

  2. A company issues a $5,000 credit memo to a customer for returned goods. Which account is debited?

    Answer: Sales Returns and Allowances

    Sales Returns and Allowances is debited to record the reduction in revenue from returned goods.

  3. What is the normal balance of the Unearned Revenue account?

    Answer: Credit

    Unearned Revenue is a liability account with a normal credit balance since the company owes services or goods to the customer.

  4. Under the accrual basis, when should revenue be recognized for services rendered on credit?

    Answer: When services are performed

    Under accrual accounting, revenue is recognized when services are performed, regardless of when cash is received.

  5. Which of the following is NOT a component of the accounting equation?

    Answer: Revenue

    The accounting equation is Assets = Liabilities + Owner's Equity; Revenue is a component of equity but not a separate element in the equation.

  6. A petty cash fund is established for $300. After reimbursement expenses total $245, the journal entry to replenish includes a credit to:

    Answer: Cash

    Replenishing petty cash credits Cash (the main checking account) for the amount spent ($245).

  7. Which depreciation method applies a constant rate to the declining book value of an asset?

    Answer: Double-declining balance

    Double-declining balance applies a fixed percentage to the asset's remaining book value each period, resulting in accelerated depreciation.