BOOKKEEPING FINAL PAPER 2026 FULL
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ Laws passed by Congress in 1933 and 1934 gave the Securities and
Exchange Commission (SEC) final say on matters of financial reporting
by publicly owned corporations.
A) True
B) False. Answer: A
◉ When equipment is purchased for cash,
A) one asset increases and another asset decreases
B) assets decrease and expenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease. Answer: A
◉ Tax planning is any activity associated with the preparation of tax
returns and the audit of those returns.
A) True
B) False. Answer: B
, ◉ The frequency of deposits of federal income taxes withheld and social
security and Medicare taxes is determined by the amount owed.
A) True
B) False. Answer: A
◉ Which of the following is not a reason why the book balance of cash
may not agree with the balance on the bank statement?
A) Outstanding checks
B) End of the month
C) Service charges and other deductions
D) Deposit in transit. Answer: B
◉ Most cash transactions involve checks.
A) True
B) False. Answer: A
◉ 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 Income Summary
B) the owner's capital account and a credit to Cash
C) Income Summary and a credit to the owner's capital account
D) the owner's drawing account and a credit to the owner's capital
account. Answer: A
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ Laws passed by Congress in 1933 and 1934 gave the Securities and
Exchange Commission (SEC) final say on matters of financial reporting
by publicly owned corporations.
A) True
B) False. Answer: A
◉ When equipment is purchased for cash,
A) one asset increases and another asset decreases
B) assets decrease and expenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease. Answer: A
◉ Tax planning is any activity associated with the preparation of tax
returns and the audit of those returns.
A) True
B) False. Answer: B
, ◉ The frequency of deposits of federal income taxes withheld and social
security and Medicare taxes is determined by the amount owed.
A) True
B) False. Answer: A
◉ Which of the following is not a reason why the book balance of cash
may not agree with the balance on the bank statement?
A) Outstanding checks
B) End of the month
C) Service charges and other deductions
D) Deposit in transit. Answer: B
◉ Most cash transactions involve checks.
A) True
B) False. Answer: A
◉ 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 Income Summary
B) the owner's capital account and a credit to Cash
C) Income Summary and a credit to the owner's capital account
D) the owner's drawing account and a credit to the owner's capital
account. Answer: A
