BBK99E1 BASIC BOOKKEEPING ACTUAL
TEST PAPER FULL QUESTIONS AND
ACCURATE ANSWERS GRADED APLUS
●● Which of these would be considered an asset?
Answer: Taxes
**A vehicle
The owner's investment in the company.
●● If Lou opened a line of credit at the tractor supply store and used it to
purchase $600 in inventory, how would you categorize the $600
borrowed from the store?
Answer: Equity
**Liability
Asset
●● If Lou's purchase increased liabilities by $600, what would also need
to happen for the accounting equation to be in balance?
Answer: **Add $600 to assets
Subtract $600 from assets
Add $600 to equity
,●● Which two entries would need to be recorded to log Lou receiving a
$100 payment for a weeding job he completed for Ms. Rosa?
Answer: $100 Debit in Lawncare Revenue
**$100 Debit in Cash
$100 Credit in Cash
**$100 Credit in Lawncare Revenue
●● Lou was paid $280 by Eagles Landing subdivision.
How would you record this transaction?
Answer: **$280 Debit to Cash.
$280 Debit to Lawncare Revenue.
**$280 Credit to Lawncare Revenue.
$280 Credit to Cash.
●● Lou purchased his truck for $32,000. He paid $2,000 cash and took
out a $30,000, 5-year loan. Select the correct journal entry below.
Answer: We credit $32,000 to the asset account, Plant, Property &
Equipment. We then credit $2,000 to cash (to decrease the balance) and
credit $30,000 to loans payable (to increase the loan balance).
Totaling both columns gives us $32,000 = $32,000.
Plant, Property, & Equipment - Debit - 32,000
Cash - Credit - 2,000
,Loan Payment - Credit 30,000
●● The general journal is used to record transactions in chronological
order. Each transaction requires two entries, a credit and a _____.
Answer: **Debit
●● When creating a journal entry, the following are true
Answer: You can only include two accounts.
**You record debits on the left.
**The credit and debit totals must be equal.
**You record credits on the right.
●● In this example, the journal entry shows a(n) _______ in the
Equipment account and a(n) ______ in the Cash account.
Answer: The journal entry shows an increase in the Equipment account
and a decrease in the Cash account.
increase, increase
decrease, increase
decrease, decrease
**increase, decrease
●● This journal entry could represent:
, Answer: **Purchasing $70 worth of equipment with cash.
Selling $70 worth of equipment for cash.
Purchasing $70 worth of equipment on credit.
Selling $70 worth of equipment on credit.
●● What tasks would a bookkeeper do?
Answer: Manage accounts receivable/payable, recording financial
transactions, and implement HR policies.
**Handle bank feeds and reconciles bank accounts, managing accounts
receivable/payable, and record financial transactions.
Record financial transactions, create employee write-ups, and handle
bank feeds and reconcile bank accounts
●● Mary Smith is the owner and operator of Smith Construction. At the
end of the company's accounting period, December 31, 2020, Smith
Construction has assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity
would be as of December 31, 2020
Answer: 520,000
TEST PAPER FULL QUESTIONS AND
ACCURATE ANSWERS GRADED APLUS
●● Which of these would be considered an asset?
Answer: Taxes
**A vehicle
The owner's investment in the company.
●● If Lou opened a line of credit at the tractor supply store and used it to
purchase $600 in inventory, how would you categorize the $600
borrowed from the store?
Answer: Equity
**Liability
Asset
●● If Lou's purchase increased liabilities by $600, what would also need
to happen for the accounting equation to be in balance?
Answer: **Add $600 to assets
Subtract $600 from assets
Add $600 to equity
,●● Which two entries would need to be recorded to log Lou receiving a
$100 payment for a weeding job he completed for Ms. Rosa?
Answer: $100 Debit in Lawncare Revenue
**$100 Debit in Cash
$100 Credit in Cash
**$100 Credit in Lawncare Revenue
●● Lou was paid $280 by Eagles Landing subdivision.
How would you record this transaction?
Answer: **$280 Debit to Cash.
$280 Debit to Lawncare Revenue.
**$280 Credit to Lawncare Revenue.
$280 Credit to Cash.
●● Lou purchased his truck for $32,000. He paid $2,000 cash and took
out a $30,000, 5-year loan. Select the correct journal entry below.
Answer: We credit $32,000 to the asset account, Plant, Property &
Equipment. We then credit $2,000 to cash (to decrease the balance) and
credit $30,000 to loans payable (to increase the loan balance).
Totaling both columns gives us $32,000 = $32,000.
Plant, Property, & Equipment - Debit - 32,000
Cash - Credit - 2,000
,Loan Payment - Credit 30,000
●● The general journal is used to record transactions in chronological
order. Each transaction requires two entries, a credit and a _____.
Answer: **Debit
●● When creating a journal entry, the following are true
Answer: You can only include two accounts.
**You record debits on the left.
**The credit and debit totals must be equal.
**You record credits on the right.
●● In this example, the journal entry shows a(n) _______ in the
Equipment account and a(n) ______ in the Cash account.
Answer: The journal entry shows an increase in the Equipment account
and a decrease in the Cash account.
increase, increase
decrease, increase
decrease, decrease
**increase, decrease
●● This journal entry could represent:
, Answer: **Purchasing $70 worth of equipment with cash.
Selling $70 worth of equipment for cash.
Purchasing $70 worth of equipment on credit.
Selling $70 worth of equipment on credit.
●● What tasks would a bookkeeper do?
Answer: Manage accounts receivable/payable, recording financial
transactions, and implement HR policies.
**Handle bank feeds and reconciles bank accounts, managing accounts
receivable/payable, and record financial transactions.
Record financial transactions, create employee write-ups, and handle
bank feeds and reconcile bank accounts
●● Mary Smith is the owner and operator of Smith Construction. At the
end of the company's accounting period, December 31, 2020, Smith
Construction has assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity
would be as of December 31, 2020
Answer: 520,000
