Bookkeeper Practice Test Questions and Actual Answers .

Laws passed by congress in 1933 and 1934 gave the SEC final say on matters of financial reporting by publicly owned corporations. True/False - Answer True Tax planning is any activity associated with the preparation of tax returns and the audit of those returns. True/False - Answer False All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by a) an internal auditor b) the firm's managerial accountant c) an independent certified public accountant d) anyone in the accounting department - Answer c Amounts that a business must pay in the future are known as a) accounts receivable b) accounts payable c) capital d) expenses - Answer b If during the year total assets increased by $75,000 and total liabilities decreased by $16,000 by how much did the owner's equity increase? a) $91,000 b) $59,000 c) $75,000 - Answer a When equipment is purchased for cash, a) assets decrease and expenses increase b) one asset increases and another asset decreases c) assets and owner's equity increase d) assets increase and liabilities decrease - Answer b