BOOKKEEPING CERTIFICATION PRACTICE TEST QUESTIONS & ANSWERS (RATED A+)

BOOKKEEPING CERTIFICATION
PRACTICE TEST QUESTIONS &
ANSWERS (RATED A+)

Springville Distributors made sales using a list prie of $880 and a trade discount of
30%. What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616 - ANSWERD

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 - ANSWERA


Most cash transactions involve checks.
A) True
B) False - ANSWERA

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 -
ANSWERA

The maximum base for the social security tax is the same as that of the Medicare
tax.
A) True
B) False - ANSWERB

A subsidiary ledger is a ledger that contains accounts of a single type.
A) True
B) False - ANSWERA

The Accounts Payable account has a $3,000 credit balance. An entry for the
payment of the $1,000 on the amount owed is recorded and posted. The new
balance of the Accounts Payable account is
A) a $2,000 debit balance
B) a $4,000 debit balance