Texas Bookkeeping Certification Course
Questions And Correct Answer with Rational
(100% verified answer) Q & A 2026 /
Instant download PDF
1. What is the main purpose of bookkeeping?
A. Marketing products
B. Recording financial transactions
C. Hiring employees
D. Designing business plans
Answer: B
Rationale: Bookkeeping focuses on systematically recording financial transactions.
2. Which equation represents the accounting equation?
A. Assets = Liabilities + Equity
B. Revenue = Expenses + Profit
C. Cash = Sales + Purchases
D. Assets = Income − Expenses
Answer: A
Rationale: The fundamental accounting equation balances assets with liabilities
and equity.
3. What is a debit entry used to increase?
,A. Liabilities
B. Revenue
C. Expenses
D. Capital withdrawals
Answer: C
Rationale: Debits increase expense accounts.
4. What is a credit entry used to increase?
A. Assets
B. Expenses
C. Liabilities
D. Drawings
Answer: C
Rationale: Credits increase liabilities, equity, and revenue.
5. Which document provides proof of a business transaction?
A. Ledger
B. Journal
C. Source document
D. Trial balance
Answer: C
Rationale: Source documents validate financial transactions.
6. What is the first book of entry?
A. Ledger
B. Journal
C. Balance sheet
D. Income statement
, Answer: B
Rationale: Transactions are first recorded in the journal.
7. What does the ledger contain?
A. Only cash records
B. Final reports
C. Classified accounts
D. Tax returns
Answer: C
Rationale: The ledger organizes transactions into accounts.
8. What is a trial balance used for?
A. Calculating taxes
B. Checking debit and credit equality
C. Recording sales
D. Paying salaries
Answer: B
Rationale: It ensures debits equal credits.
9. Which financial statement shows profit or loss?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Ledger
Answer: B
Rationale: The income statement summarizes revenues and expenses.
10. What does the balance sheet show?
Questions And Correct Answer with Rational
(100% verified answer) Q & A 2026 /
Instant download PDF
1. What is the main purpose of bookkeeping?
A. Marketing products
B. Recording financial transactions
C. Hiring employees
D. Designing business plans
Answer: B
Rationale: Bookkeeping focuses on systematically recording financial transactions.
2. Which equation represents the accounting equation?
A. Assets = Liabilities + Equity
B. Revenue = Expenses + Profit
C. Cash = Sales + Purchases
D. Assets = Income − Expenses
Answer: A
Rationale: The fundamental accounting equation balances assets with liabilities
and equity.
3. What is a debit entry used to increase?
,A. Liabilities
B. Revenue
C. Expenses
D. Capital withdrawals
Answer: C
Rationale: Debits increase expense accounts.
4. What is a credit entry used to increase?
A. Assets
B. Expenses
C. Liabilities
D. Drawings
Answer: C
Rationale: Credits increase liabilities, equity, and revenue.
5. Which document provides proof of a business transaction?
A. Ledger
B. Journal
C. Source document
D. Trial balance
Answer: C
Rationale: Source documents validate financial transactions.
6. What is the first book of entry?
A. Ledger
B. Journal
C. Balance sheet
D. Income statement
, Answer: B
Rationale: Transactions are first recorded in the journal.
7. What does the ledger contain?
A. Only cash records
B. Final reports
C. Classified accounts
D. Tax returns
Answer: C
Rationale: The ledger organizes transactions into accounts.
8. What is a trial balance used for?
A. Calculating taxes
B. Checking debit and credit equality
C. Recording sales
D. Paying salaries
Answer: B
Rationale: It ensures debits equal credits.
9. Which financial statement shows profit or loss?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Ledger
Answer: B
Rationale: The income statement summarizes revenues and expenses.
10. What does the balance sheet show?
