BookKeeping Accounting MCQs for Account officer/ Accountant
What is bookkeeping?
a) The process of recording financial transactions
b) The process of analyzing financial statements
c) The process of creating a business plan
d) The process of marketing a business
Answer: a) The process of recording financial transactions
Which of the following is not an example of a financial transaction?
a) Purchasing inventory
b) Paying rent
c) Posting on social media
d) Receiving payment from a customer
Answer: c) Posting on social media
What is a cash flow statement?
a) A financial statement that shows a business’s revenue and expenses over a period of time
b) A financial statement that shows a business’s assets and liabilities at a specific point in time
c) A financial statement that shows a business’s cash inflows and outflows over a period of time
d) A financial statement that shows a business’s profitability over a period of time
Answer: c) A financial statement that shows a business’s cash inflows and outflows over a period of time
What is double-entry bookkeeping?
a) Each financial transaction is recorded twice
b) Only one financial transaction is recorded
c) Financial transactions are not recorded
d) Financial transactions are analyzed
Answer: a) Each financial transaction is recorded twice
What is the purpose of a trial balance?
a) To ensure that the total debits and credits in the ledger balance
b) To analyze financial statements
c) To create a balance sheet
d) To market a business
Answer: a) To ensure that the total debits and credits in the ledger balance
Bookkeeping Accounting MCQs for Accounts Exams
What is depreciation?
a) The increase in value of an asset over time
b) The decrease in value of an asset over time
c) The amount of money a business owes
d) The amount of money a business receives
Answer: b) The decrease in value of an asset over time
Which of the following is a ledger?
a) Balance sheet
b) Income statement
c) Journal
d) Chart of accounts
Answer: d) Chart of accounts
What is the purpose of an income statement?
a) To show a business’s cash inflows and outflows
b) Business’s assets and liabilities at a specific point in time
c) To show a business’s revenue and expenses over a period of time
d) To show a business’s profitability over a period of time
Answer: c) To show a business’s revenue and expenses over a period of time
What is the purpose of a balance sheet?
a) To show a business’s cash inflows and outflows
b) To show a business’s revenue and expenses over a period of time
c) To show a business’s assets and liabilities at a specific point in time
d) To show a business’s profitability over a period of time
Answer: c) To show a business’s assets and liabilities at a specific point in time
What is the purpose of a general ledger?
a) To record all financial transactions in a business
b) To create financial statements
c) To analyze financial statements
d) To market a business
Answer: a) To record all financial transactions in a business
Bookkeeping Accounting MCQs
What is the purpose of a journal in bookkeeping?
a) To record financial transactions in chronological order
b) To analyze financial statements
c) To create financial statements
d) To market a business
Answer: a) To record financial transactions in chronological order
An accounts payable ledger used for ?
a) To record amounts owed to suppliers
b) To record amounts paid by customers
c) To record fixed assets
d) To record inventory
Answer: a) To record amounts owed to suppliers
The Accounts receivable ledger is used for?
a) To record amounts owed by customers
b) To record amounts paid to suppliers
c) To record fixed assets
d) To record inventory
Answer: a) To record amounts owed by customers
What is the difference between a debit and a credit in bookkeeping?
a) Debits increase asset accounts and decrease liability accounts, while credits decrease asset accounts and increase liability accounts
b) Debits increase liability accounts and decrease asset accounts, while credits increase asset accounts and decrease liability accounts
c) Debits and credits have the same effect on asset and liability accounts
d) Debits and credits have no effect on asset and liability accounts
Answer: b) Debits increase liability accounts and decrease asset accounts, while credits increase asset accounts and decrease liability accounts
What is the purpose of a general journal in bookkeeping?
a) Record transactions that cannot be recorded in other journals
b) To record financial transactions in chronological order
c) To record amounts owed to suppliers
d) To record amounts owed by customers
Answer: a) Record transactions that cannot be recorded in other journals
Bookkeeping Accounting MCQs
What is the purpose of a ledger in bookkeeping?
a) To summarize financial transactions in a specific account
b) To record financial transactions in chronological order
c) To create financial statements
d) To analyze financial statements
Answer: a) To summarize financial transactions in a specific account
What is a trial balance used for in bookkeeping?
a) To check that debits and credits in the ledger balance
b) To create financial statements
c) To analyze financial statements
d) To record financial transactions in chronological order
Answer: a) To check that debits and credits in the ledger balance
What is a balance sheet equation?
a) Assets = Liabilities + Equity
b) Assets + Liabilities = Equity
c) Assets – Liabilities = Equity
d) Assets = Liabilities – Equity
Answer: a) Assets = Liabilities + Equity
What is a contra account in bookkeeping?
a) An account used to offset the balance of another account
b) An account that has a debit balance
c) An account that has a credit balance
d) An account not used in bookkeeping
Answer: a) An account used to offset the balance of another account
What is the purpose of a cash basis accounting system?
a) Record transactions when cash is received or paid out
b) Record transactions when they occur, regardless of when cash is received or paid out
c) To create financial statements
d) To analyze financial statements
Answer: a) Record transactions when cash is received or paid out
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