CPB / BookKeeping Journalizing and Posting Transactions 5

Question 1

When a previously written-off bad debt is unexpectedly collected, the bookkeeper must first:

Accepted Answer

Reinstate the account receivable with a reversing entry, then record the cash receipt

Answer

The correct procedure reinstates the receivable by reversing the original write-off, then records the cash collection separately to maintain a complete audit trail.

Question 2

The process of transferring debits and credits from the journal to the appropriate ledger accounts is called:

Accepted Answer

Posting

Answer

Posting is the process of copying journal entry information into the corresponding accounts in the general ledger.

Question 3

Which of the following transactions increases both an asset and a liability?

Accepted Answer

Business purchases equipment on account

Answer

Purchasing equipment on account increases the Equipment asset and simultaneously increases Accounts Payable, a liability.

Question 4

A slide error in bookkeeping means that:

Accepted Answer

A decimal point was moved incorrectly (e.g., $500 entered as $5,000)

Answer

A slide error occurs when the decimal point is misplaced, such as recording $500 as $5,000, and the difference is always divisible by 9.

Question 5

In a T-account, the left side always represents:

Accepted Answer

The debit side

Answer

By convention, the left side of every T-account is always the debit side, regardless of whether debits increase or decrease that particular account.

CPB / BookKeeping Practice Test

CPB / BookKeeping Practice Test

CPB / BookKeeping Journalizing and Posting Transactions 5