Certified Bookkeeper Examination
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A |
Instant Download Pdf
Question 1
Which of the following best describes the purpose of bookkeeping?
A) To prepare marketing strategies
B) To interpret financial statements
C) To systematically record financial transactions
D) To audit financial records
Answer: C) To systematically record financial transactions
Rationale: Bookkeeping is the process of recording all financial transactions in a
structured and consistent manner. It forms the foundation of accounting by
ensuring that every monetary activity is accurately documented, enabling the
preparation of financial statements and further financial analysis.
Question 2
Which accounting principle states that expenses should be matched with
revenues?
A) Revenue recognition principle
B) Matching principle
C) Cost principle
D) Materiality principle
Answer: B) Matching principle
Rationale: The matching principle requires that expenses be recorded in the
,same period as the revenues they help generate. This ensures accurate profit
measurement for each accounting period.
Question 3
What is the normal balance of an asset account?
A) Credit
B) Debit
C) Zero
D) Either debit or credit
Answer: B) Debit
Rationale: Asset accounts normally carry debit balances because increases in
assets are recorded on the debit side of the accounting equation.
Question 4
Which financial statement shows a company’s financial position at a point in time?
A) Income statement
B) Cash flow statement
C) Balance sheet
D) Statement of changes in equity
Answer: C) Balance sheet
Rationale: The balance sheet presents assets, liabilities, and equity at a specific
date, showing the financial position of a business.
Question 5
Which document is used as evidence of a credit sale?
A) Purchase order
B) Invoice
,C) Receipt
D) Ledger
Answer: B) Invoice
Rationale: An invoice is issued to record a credit sale and serves as formal
documentation requesting payment from a customer.
Question 6
Which of the following increases equity?
A) Expenses
B) Drawings
C) Revenues
D) Liabilities
Answer: C) Revenues
Rationale: Revenues increase owner's equity because they contribute to net
income, which ultimately increases retained earnings.
Question 7
What is the accounting equation?
A) Assets = Liabilities + Equity
B) Assets = Revenue − Expenses
C) Liabilities = Assets + Equity
D) Equity = Assets + Liabilities
Answer: A) Assets = Liabilities + Equity
Rationale: This fundamental equation shows that a company’s assets are
financed by liabilities and owner’s equity.
Question 8
, Which book is used for initial recording of transactions?
A) Ledger
B) Trial balance
C) Journal
D) Balance sheet
Answer: C) Journal
Rationale: The journal is the book of original entry where transactions are first
recorded chronologically.
Question 9
A debit entry in expenses will:
A) Decrease expenses
B) Increase expenses
C) Eliminate expenses
D) Not affect expenses
Answer: B) Increase expenses
Rationale: Expense accounts increase with debit entries according to double-
entry accounting rules.
Question 10
Which statement is true about liabilities?
A) They represent owner investment
B) They are resources owned
C) They are obligations to outsiders
D) They are always long-term
Answer: C) They are obligations to outsiders
Rationale: Liabilities are amounts a business owes to external parties such as
suppliers or lenders.
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A |
Instant Download Pdf
Question 1
Which of the following best describes the purpose of bookkeeping?
A) To prepare marketing strategies
B) To interpret financial statements
C) To systematically record financial transactions
D) To audit financial records
Answer: C) To systematically record financial transactions
Rationale: Bookkeeping is the process of recording all financial transactions in a
structured and consistent manner. It forms the foundation of accounting by
ensuring that every monetary activity is accurately documented, enabling the
preparation of financial statements and further financial analysis.
Question 2
Which accounting principle states that expenses should be matched with
revenues?
A) Revenue recognition principle
B) Matching principle
C) Cost principle
D) Materiality principle
Answer: B) Matching principle
Rationale: The matching principle requires that expenses be recorded in the
,same period as the revenues they help generate. This ensures accurate profit
measurement for each accounting period.
Question 3
What is the normal balance of an asset account?
A) Credit
B) Debit
C) Zero
D) Either debit or credit
Answer: B) Debit
Rationale: Asset accounts normally carry debit balances because increases in
assets are recorded on the debit side of the accounting equation.
Question 4
Which financial statement shows a company’s financial position at a point in time?
A) Income statement
B) Cash flow statement
C) Balance sheet
D) Statement of changes in equity
Answer: C) Balance sheet
Rationale: The balance sheet presents assets, liabilities, and equity at a specific
date, showing the financial position of a business.
Question 5
Which document is used as evidence of a credit sale?
A) Purchase order
B) Invoice
,C) Receipt
D) Ledger
Answer: B) Invoice
Rationale: An invoice is issued to record a credit sale and serves as formal
documentation requesting payment from a customer.
Question 6
Which of the following increases equity?
A) Expenses
B) Drawings
C) Revenues
D) Liabilities
Answer: C) Revenues
Rationale: Revenues increase owner's equity because they contribute to net
income, which ultimately increases retained earnings.
Question 7
What is the accounting equation?
A) Assets = Liabilities + Equity
B) Assets = Revenue − Expenses
C) Liabilities = Assets + Equity
D) Equity = Assets + Liabilities
Answer: A) Assets = Liabilities + Equity
Rationale: This fundamental equation shows that a company’s assets are
financed by liabilities and owner’s equity.
Question 8
, Which book is used for initial recording of transactions?
A) Ledger
B) Trial balance
C) Journal
D) Balance sheet
Answer: C) Journal
Rationale: The journal is the book of original entry where transactions are first
recorded chronologically.
Question 9
A debit entry in expenses will:
A) Decrease expenses
B) Increase expenses
C) Eliminate expenses
D) Not affect expenses
Answer: B) Increase expenses
Rationale: Expense accounts increase with debit entries according to double-
entry accounting rules.
Question 10
Which statement is true about liabilities?
A) They represent owner investment
B) They are resources owned
C) They are obligations to outsiders
D) They are always long-term
Answer: C) They are obligations to outsiders
Rationale: Liabilities are amounts a business owes to external parties such as
suppliers or lenders.
