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BOOKKEEPING CERTIFICATION EXAM
QUESTTIONS AND ANSWERS WITH
RATIONALE|GRADED A+|100%
CORRECT|2026 UPDATE
Question 1
The accounting equation is:
A) Assets = Liabilities - Owner's Equity
B) Assets = Liabilities + Owner's Equity
C) Assets + Liabilities = Owner's Equity
D) Assets + Owner's Equity = Liabilities
Answer: B
Rationale: The fundamental accounting equation states that
assets (what the business owns) must equal liabilities (what the
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business owes to others) plus owner's equity (the owner's claim on
assets). This equation must always balance.
Question 2
A debit entry will:
A) Increase an asset account
B) Decrease a liability account
C) Increase an expense account
D) All of the above
Answer: D
Rationale: Debits increase asset and expense accounts; debits
decrease liability, equity, and revenue accounts. All three
statements are correct applications of debit rules.
Question 3
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Which account normally has a credit balance?
A) Accounts Receivable
B) Sales Revenue
C) Inventory
D) Utilities Expense
Answer: B
Rationale: Revenue accounts (Sales Revenue) have normal credit
balances. Assets (A, C) and expenses (D) have normal debit
balances.
Question 4
Scenario: A company receives $5,000 cash from a customer for
services to be performed next month. The bookkeeper should:
A) Credit Service Revenue, Debit Cash
B) Credit Unearned Revenue, Debit Cash
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C) Debit Service Revenue, Credit Cash
D) Credit Accounts Receivable, Debit Cash
Answer: B
Rationale: Cash received before services are performed creates
a liability (Unearned Revenue). Cash is debited; Unearned
Revenue is credited. Revenue is recognized when earned, not
when cash is received.
Question 5
The purpose of a journal entry is to:
A) Summarize all transactions for the year
B) Record transactions in chronological order
C) List all account balances
D) Replace the general ledger
Answer: B
BOOKKEEPING CERTIFICATION EXAM
QUESTTIONS AND ANSWERS WITH
RATIONALE|GRADED A+|100%
CORRECT|2026 UPDATE
Question 1
The accounting equation is:
A) Assets = Liabilities - Owner's Equity
B) Assets = Liabilities + Owner's Equity
C) Assets + Liabilities = Owner's Equity
D) Assets + Owner's Equity = Liabilities
Answer: B
Rationale: The fundamental accounting equation states that
assets (what the business owns) must equal liabilities (what the
,Page 2 of 120
business owes to others) plus owner's equity (the owner's claim on
assets). This equation must always balance.
Question 2
A debit entry will:
A) Increase an asset account
B) Decrease a liability account
C) Increase an expense account
D) All of the above
Answer: D
Rationale: Debits increase asset and expense accounts; debits
decrease liability, equity, and revenue accounts. All three
statements are correct applications of debit rules.
Question 3
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Which account normally has a credit balance?
A) Accounts Receivable
B) Sales Revenue
C) Inventory
D) Utilities Expense
Answer: B
Rationale: Revenue accounts (Sales Revenue) have normal credit
balances. Assets (A, C) and expenses (D) have normal debit
balances.
Question 4
Scenario: A company receives $5,000 cash from a customer for
services to be performed next month. The bookkeeper should:
A) Credit Service Revenue, Debit Cash
B) Credit Unearned Revenue, Debit Cash
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C) Debit Service Revenue, Credit Cash
D) Credit Accounts Receivable, Debit Cash
Answer: B
Rationale: Cash received before services are performed creates
a liability (Unearned Revenue). Cash is debited; Unearned
Revenue is credited. Revenue is recognized when earned, not
when cash is received.
Question 5
The purpose of a journal entry is to:
A) Summarize all transactions for the year
B) Record transactions in chronological order
C) List all account balances
D) Replace the general ledger
Answer: B
