Accounting Bookkeeper Practice, Exercises of Financial Accounting

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Bookkeeper Practice Test

Table of Contents

Bookkeeper Practice Test ............................................................................................................................. 3 Bookkeeper Practice Test Answer Sheet ...................................................................................................... 8

7. On a typical chart of accounts, the accounts are arranged in the same order as they appear in the trial balance. A) True B) False 8. The Income Statement is prepared first because the Net Income amount is a line item on the Balance Sheet. A) True B) False 9. Debits are used to record A) increases in assets. B) increases in revenue. C) increases in owner's equity. D) increases in liabilities. 10. The process of transferring the data from the journal into the ledgers is called: A) footing B) posting C) transponding D) journalizing 11. The Accounts Payable account has a $3,000 credit balance. An entry for the payment of $1,000 on the amount owed is recorded and posted. The new balance of the Accounts Payable account is A) a $2,000 credit balance. B) a $4,000 credit balance. C) a $2,000 debit balance. D) a $4,000 debit balance. 12. The cost of a long-term asset, such as equipment, is transferred to expense as it is used during its life. A) True B) False

13. Which of the following need not be completed separately if a worksheet is prepared? A) a trial balance B) an income statement C) a balance sheet D) a statement of owner's equity 14. The entry to close the revenue account Fees Income requires a debit to that account. A) True B) False 15. The entry to transfer a net loss to the owner's capital account would include a debit to A) the owner's capital account and a credit to Cash. B) the owner's drawing account and a credit to the owner's capital account. C) Income Summary and a credit to the owner's capital account. D) the owner's capital account and a credit to Income Summary. 16. A subsidiary ledger is a ledger that contains accounts of a single type. A) True B) False 17. The balance of a customer's account in the accounts receivable ledger is circled to show that it is a debit amount. A) True B) False 18. Which of the following is not one of the three basic types of business? A) Service B) Merchandising C) Wholesale D) Manufacturing 19. When a sales department needs goods, it sends the purchasing department a purchase invoice. A) True B) False

percent. What amount should be recorded for the sale?

• 26. Springville Distributors made sales using a list price of $880 and a trade discount of
• A) $
• B) $
• C) $
• D) $
• 27. Springville Distributors made sales using a list price of $590 and a trade discount of
• A) $ percent. What amount should be recorded for the sale?
• B) $
• C) $
• D) $
• 28. Springville Distributors made sales using a list price of $360 and a trade discount of
• A) $ percent. What amount should be recorded for the sale?
• B) $
• C) $
• D) $
• 29. Aspen Corporation made sales using a list price of $4,500 and trade discounts of
• A) $2, percent then 20 percent. What amount should be recorded for each sale?
• B) $3,
• C) $3,
• D) $2,
• 30. Aspen Corporation made sales using a list price of $6,750 and trade discounts of
• A) $4, percent then 10 percent. What amount should be recorded for each sale?
• B) $6,
• C) $4,
• D) $4,

Bookkeeper Practice Test Answer Sheet Name:

1. A 16. A
2. B 17. B
3. C 18. C
4. B 19. B
5. A 20. D
6. B 21. A
7. A 22. D
8. B 23. B
9. A 24. D
10. B 25. A
11. A 26. B
12. A 27. C
13. A 28. B
14. A 29. A
15. D 30. D