Bookkeeping Test Questions and Answers Solved 100% Latest Update 2025
bookkeeping - Answers This term could describe the first few steps in the accounting cycle.
journal - Answers In a manual system, this is defined as a book of original entry. It is used less in a
computerised system.
journal entry - Answers This describes the debit and credit amounts and accounts that get recorded in
the general journal. The amounts will be posted to the general ledger accounts.
chart of accounts - Answers This is a listing of the general ledger accounts. However, it does not contain
amounts.
debit - Answers This term indicates the left side of a general ledger account and it is the normal balance
for asset, expense, and loss accounts.
credit - Answers This term indicates the right side of a general ledger account and it is the normal
balance for liability, stockholders' equity, revenue, and gain accounts.
double entry - Answers Under this system every transaction will involve at least two general ledger
accounts. It also requires that the total of the debit amounts be equal to the total of the credit amounts.
bookkeeping equation
(or)
accounting equation - Answers This mathematical expression is assets = liabilities + stockholders' (or
owner's) equity and should always be in balance when the double-entry system is used.
account - Answers Two or more of these general ledger records are required for every transaction.
trial balance - Answers This internal report lists the balances in each of the general ledger accounts in
either a debit or credit column. Its purpose is to con rm that the debits are equal to the credits.
adjusting entry - Answers This type of journal entry is recorded at the end of an accounting period in
order to accrue and/or defer expenses and revenues. (Each will include a balance sheet account and an
income statement account.)
balance sheet accounts
(or)
permanent accounts
(or)
real accounts - Answers This group of general ledger accounts will not be closed at the end of an
accounting period.
, income statement accounts
(or)
temporary accounts
(or)
nominal accounts - Answers This group of general ledger accounts will be closed at the end of each
accounting period.
depreciation - Answers This is the systematic allocation of a plant asset's cost to expense over the useful
life of the asset in order to match an asset's cost to the accounting periods in which the asset is used.
assets - Answers These are a company's resources that have a future economic value that can be
measured and reported in the company's currency.
liabilities - Answers These are a company's obligations and one of the main elements of the balance
sheet. They normally have a credit balance which will carry forward to the next accounting year.
asset account - Answers This is a general ledger record used to record a company's resource that has a
future economic value. It normally has a debit balance which will carry forward to the next accounting
year.
contra asset account - Answers This type of general ledger asset account will likely have a credit balance.
Examples include Accumulated Depreciation and Allowance for Doubtful Accounts.
liability account - Answers This is a general ledger record used to record a company's obligations
including deferred revenues. Its normal balance is a credit which will carry forward to the next
accounting year.
contra liability account - Answers This type of general ledger liability account will have a debit balance.
An example is Discount on Bonds Payable.
accounts payable - Answers This current liability account reports the amounts owed to vendors
(suppliers) for goods and/or services that were received on credit.
vendor - Answers This is another term for supplier.
early payment discount
(or)
cash discount - Answers This is another term used for the 1% or 2% sales discount or purchase discount.
1/10 net 30 - Answers This invoice term indicates that the net amount (after any return or allowance) is
due within 30 days. However, 1% can be deducted if the invoice is paid within 10 days.
bookkeeping - Answers This term could describe the first few steps in the accounting cycle.
journal - Answers In a manual system, this is defined as a book of original entry. It is used less in a
computerised system.
journal entry - Answers This describes the debit and credit amounts and accounts that get recorded in
the general journal. The amounts will be posted to the general ledger accounts.
chart of accounts - Answers This is a listing of the general ledger accounts. However, it does not contain
amounts.
debit - Answers This term indicates the left side of a general ledger account and it is the normal balance
for asset, expense, and loss accounts.
credit - Answers This term indicates the right side of a general ledger account and it is the normal
balance for liability, stockholders' equity, revenue, and gain accounts.
double entry - Answers Under this system every transaction will involve at least two general ledger
accounts. It also requires that the total of the debit amounts be equal to the total of the credit amounts.
bookkeeping equation
(or)
accounting equation - Answers This mathematical expression is assets = liabilities + stockholders' (or
owner's) equity and should always be in balance when the double-entry system is used.
account - Answers Two or more of these general ledger records are required for every transaction.
trial balance - Answers This internal report lists the balances in each of the general ledger accounts in
either a debit or credit column. Its purpose is to con rm that the debits are equal to the credits.
adjusting entry - Answers This type of journal entry is recorded at the end of an accounting period in
order to accrue and/or defer expenses and revenues. (Each will include a balance sheet account and an
income statement account.)
balance sheet accounts
(or)
permanent accounts
(or)
real accounts - Answers This group of general ledger accounts will not be closed at the end of an
accounting period.
, income statement accounts
(or)
temporary accounts
(or)
nominal accounts - Answers This group of general ledger accounts will be closed at the end of each
accounting period.
depreciation - Answers This is the systematic allocation of a plant asset's cost to expense over the useful
life of the asset in order to match an asset's cost to the accounting periods in which the asset is used.
assets - Answers These are a company's resources that have a future economic value that can be
measured and reported in the company's currency.
liabilities - Answers These are a company's obligations and one of the main elements of the balance
sheet. They normally have a credit balance which will carry forward to the next accounting year.
asset account - Answers This is a general ledger record used to record a company's resource that has a
future economic value. It normally has a debit balance which will carry forward to the next accounting
year.
contra asset account - Answers This type of general ledger asset account will likely have a credit balance.
Examples include Accumulated Depreciation and Allowance for Doubtful Accounts.
liability account - Answers This is a general ledger record used to record a company's obligations
including deferred revenues. Its normal balance is a credit which will carry forward to the next
accounting year.
contra liability account - Answers This type of general ledger liability account will have a debit balance.
An example is Discount on Bonds Payable.
accounts payable - Answers This current liability account reports the amounts owed to vendors
(suppliers) for goods and/or services that were received on credit.
vendor - Answers This is another term for supplier.
early payment discount
(or)
cash discount - Answers This is another term used for the 1% or 2% sales discount or purchase discount.
1/10 net 30 - Answers This invoice term indicates that the net amount (after any return or allowance) is
due within 30 days. However, 1% can be deducted if the invoice is paid within 10 days.
