Bookkeeping Certification EXAM
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2025/2026 Q&A | INSTANT DOWNLOAD
PDF
Question 1
The primary purpose of bookkeeping is to:
A. Prepare tax laws
B. Record financial transactions accurately
C. Approve business loans
D. Audit government agencies
Correct Answer: B
Rationale: Bookkeeping focuses on recording and organizing financial
transactions accurately so financial reports can be prepared.
Question 2
The accounting equation is:
A. Assets = Liabilities − Equity
B. Assets = Liabilities + Owner's Equity
C. Revenue = Expenses + Assets
D. Assets = Revenue + Expenses
Correct Answer: B
,Rationale: The accounting equation is the foundation of accounting: Assets =
Liabilities + Owner's Equity.
Question 3
Which account is classified as an asset?
A. Accounts Payable
B. Cash
C. Service Revenue
D. Owner's Capital
Correct Answer: B
Rationale: Cash is an asset because it represents resources owned by the
business.
Question 4
Which account is classified as a liability?
A. Equipment
B. Accounts Payable
C. Rent Expense
D. Sales Revenue
Correct Answer: B
Rationale: Accounts Payable represents amounts owed to suppliers.
Question 5
Owner's Equity represents:
A. Money owed to creditors
B. The owner's financial interest in the business
C. Cash in the bank only
D. Total business expenses
,Correct Answer: B
Rationale: Owner's equity is the owner's residual interest after liabilities are
subtracted from assets.
Question 6
In double-entry bookkeeping, every transaction affects:
A. One account only
B. At least two accounts
C. Three accounts only
D. Revenue accounts only
Correct Answer: B
Rationale: Every transaction requires at least one debit and one credit.
Question 7
A debit increases which type of account?
A. Revenue
B. Liability
C. Asset
D. Owner's Equity
Correct Answer: C
Rationale: Asset accounts normally increase with debits.
Question 8
A credit increases which account?
A. Cash
B. Equipment
, C. Accounts Payable
D. Supplies
Correct Answer: C
Rationale: Liability accounts normally increase with credits.
Question 9
The first place a transaction is recorded is the:
A. Trial Balance
B. General Journal
C. Balance Sheet
D. Income Statement
Correct Answer: B
Rationale: Transactions are initially recorded in the journal before posting to the
ledger.
Question 10
The General Ledger is used to:
A. Prepare tax returns only
B. Organize transactions by account
C. Record payroll taxes only
D. Print invoices
Correct Answer: B
Rationale: The ledger groups all transactions by individual accounts.
Question 11
A trial balance is prepared to verify that:
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2025/2026 Q&A | INSTANT DOWNLOAD
Question 1
The primary purpose of bookkeeping is to:
A. Prepare tax laws
B. Record financial transactions accurately
C. Approve business loans
D. Audit government agencies
Correct Answer: B
Rationale: Bookkeeping focuses on recording and organizing financial
transactions accurately so financial reports can be prepared.
Question 2
The accounting equation is:
A. Assets = Liabilities − Equity
B. Assets = Liabilities + Owner's Equity
C. Revenue = Expenses + Assets
D. Assets = Revenue + Expenses
Correct Answer: B
,Rationale: The accounting equation is the foundation of accounting: Assets =
Liabilities + Owner's Equity.
Question 3
Which account is classified as an asset?
A. Accounts Payable
B. Cash
C. Service Revenue
D. Owner's Capital
Correct Answer: B
Rationale: Cash is an asset because it represents resources owned by the
business.
Question 4
Which account is classified as a liability?
A. Equipment
B. Accounts Payable
C. Rent Expense
D. Sales Revenue
Correct Answer: B
Rationale: Accounts Payable represents amounts owed to suppliers.
Question 5
Owner's Equity represents:
A. Money owed to creditors
B. The owner's financial interest in the business
C. Cash in the bank only
D. Total business expenses
,Correct Answer: B
Rationale: Owner's equity is the owner's residual interest after liabilities are
subtracted from assets.
Question 6
In double-entry bookkeeping, every transaction affects:
A. One account only
B. At least two accounts
C. Three accounts only
D. Revenue accounts only
Correct Answer: B
Rationale: Every transaction requires at least one debit and one credit.
Question 7
A debit increases which type of account?
A. Revenue
B. Liability
C. Asset
D. Owner's Equity
Correct Answer: C
Rationale: Asset accounts normally increase with debits.
Question 8
A credit increases which account?
A. Cash
B. Equipment
, C. Accounts Payable
D. Supplies
Correct Answer: C
Rationale: Liability accounts normally increase with credits.
Question 9
The first place a transaction is recorded is the:
A. Trial Balance
B. General Journal
C. Balance Sheet
D. Income Statement
Correct Answer: B
Rationale: Transactions are initially recorded in the journal before posting to the
ledger.
Question 10
The General Ledger is used to:
A. Prepare tax returns only
B. Organize transactions by account
C. Record payroll taxes only
D. Print invoices
Correct Answer: B
Rationale: The ledger groups all transactions by individual accounts.
Question 11
A trial balance is prepared to verify that:
