Bookkeeper Practice Test with Complete
Solutions
What is the main purpose of a general journal?
✔✔ The main purpose of a general journal is to record all types of transactions in chronological
order before they are posted to individual ledger accounts.
What does "depreciation" refer to in bookkeeping?
✔✔ Depreciation refers to the gradual reduction in the value of a fixed asset over time due to
wear and tear or obsolescence.
How is an expense invoice typically handled in bookkeeping?
✔✔ An expense invoice is typically recorded by increasing the expense account and increasing
accounts payable or reducing cash if paid immediately.
What is the purpose of an asset register?
✔✔ An asset register is used to track and manage the company’s fixed assets, including their
acquisition cost, depreciation, and current value.
1
, What is a credit note, and when is it used?
✔✔ A credit note is used to reduce the amount a customer owes to a business, often issued for
returned goods or overbilling errors.
How does one record a bank charge in the books?
✔✔ A bank charge is recorded by debiting the bank charges expense account and crediting the
bank account.
What is the function of an accounts payable subsidiary ledger?
✔✔ The accounts payable subsidiary ledger tracks all outstanding amounts owed to suppliers
and helps manage supplier payments.
How are bad debts handled in bookkeeping?
✔✔ Bad debts are written off by debiting the bad debt expense account and crediting accounts
receivable to remove the uncollectible amounts.
What is the purpose of a cash book?
✔✔ The purpose of a cash book is to record all cash transactions, including receipts and
payments, and to maintain an accurate cash balance.
2
Solutions
What is the main purpose of a general journal?
✔✔ The main purpose of a general journal is to record all types of transactions in chronological
order before they are posted to individual ledger accounts.
What does "depreciation" refer to in bookkeeping?
✔✔ Depreciation refers to the gradual reduction in the value of a fixed asset over time due to
wear and tear or obsolescence.
How is an expense invoice typically handled in bookkeeping?
✔✔ An expense invoice is typically recorded by increasing the expense account and increasing
accounts payable or reducing cash if paid immediately.
What is the purpose of an asset register?
✔✔ An asset register is used to track and manage the company’s fixed assets, including their
acquisition cost, depreciation, and current value.
1
, What is a credit note, and when is it used?
✔✔ A credit note is used to reduce the amount a customer owes to a business, often issued for
returned goods or overbilling errors.
How does one record a bank charge in the books?
✔✔ A bank charge is recorded by debiting the bank charges expense account and crediting the
bank account.
What is the function of an accounts payable subsidiary ledger?
✔✔ The accounts payable subsidiary ledger tracks all outstanding amounts owed to suppliers
and helps manage supplier payments.
How are bad debts handled in bookkeeping?
✔✔ Bad debts are written off by debiting the bad debt expense account and crediting accounts
receivable to remove the uncollectible amounts.
What is the purpose of a cash book?
✔✔ The purpose of a cash book is to record all cash transactions, including receipts and
payments, and to maintain an accurate cash balance.
2
