Certified Bookkeeper (CB) Exam 2 Questions and
correct Answers (Verified Answers) with
Rationales 2025
1. Which of the following accounts is increased with a debit?
A. Accounts Payable
B. Accounts Receivable
C. Sales Revenue
D. Owner's Capital
Rationale: Accounts Receivable is an asset, and asset accounts increase with a
debit.
2. Which of the following is an example of an accrued expense?
A. Prepaid rent
B. Salaries payable
C. Unearned revenue
D. Inventory
Rationale: Salaries payable are expenses incurred but not yet paid, making them
accrued expenses.
,3. The matching principle requires that:
A. Revenue be recognized when cash is received
B. Expenses be recorded in the same period as the revenues they help generate
C. Assets match liabilities on the balance sheet
D. Financial statements be prepared monthly
Rationale: The matching principle aligns expenses with the revenues they help
produce, ensuring accurate net income reporting.
4. Which depreciation method results in higher depreciation expense in the
earlier years of an asset's life?
A. Straight-line
B. Units-of-production
C. Double-declining balance
D. Sum-of-the-years’-digits
Rationale: The double-declining balance is an accelerated depreciation method
that records more expense early in the asset’s useful life.
5. When using the perpetual inventory system, what account is affected when
inventory is sold?
A. Inventory only
B. Inventory and Cost of Goods Sold
C. Purchases
D. Sales Returns
, Rationale: In a perpetual system, both Inventory and Cost of Goods Sold are
updated with each sale.
6. What is the journal entry to record employer payroll taxes?
A. Debit Salaries Expense, credit Cash
B. Debit Payroll Tax Expense, credit FICA Payable and FUTA Payable
C. Debit Cash, credit Payroll Tax Expense
D. Debit FICA Payable, credit Payroll Tax Expense
Rationale: The employer records payroll tax expense separately by debiting
Payroll Tax Expense and crediting liabilities like FICA and FUTA Payable.
7. A bookkeeper notices a $500 transaction was recorded twice. What type of
error is this?
A. Error of omission
B. Error of principle
C. Error of duplication
D. Compensating error
Rationale: Entering a transaction twice results in an error of duplication.
8. Which of the following internal controls helps prevent fraud?
A. Using one person to handle all cash transactions
B. Segregation of duties
correct Answers (Verified Answers) with
Rationales 2025
1. Which of the following accounts is increased with a debit?
A. Accounts Payable
B. Accounts Receivable
C. Sales Revenue
D. Owner's Capital
Rationale: Accounts Receivable is an asset, and asset accounts increase with a
debit.
2. Which of the following is an example of an accrued expense?
A. Prepaid rent
B. Salaries payable
C. Unearned revenue
D. Inventory
Rationale: Salaries payable are expenses incurred but not yet paid, making them
accrued expenses.
,3. The matching principle requires that:
A. Revenue be recognized when cash is received
B. Expenses be recorded in the same period as the revenues they help generate
C. Assets match liabilities on the balance sheet
D. Financial statements be prepared monthly
Rationale: The matching principle aligns expenses with the revenues they help
produce, ensuring accurate net income reporting.
4. Which depreciation method results in higher depreciation expense in the
earlier years of an asset's life?
A. Straight-line
B. Units-of-production
C. Double-declining balance
D. Sum-of-the-years’-digits
Rationale: The double-declining balance is an accelerated depreciation method
that records more expense early in the asset’s useful life.
5. When using the perpetual inventory system, what account is affected when
inventory is sold?
A. Inventory only
B. Inventory and Cost of Goods Sold
C. Purchases
D. Sales Returns
, Rationale: In a perpetual system, both Inventory and Cost of Goods Sold are
updated with each sale.
6. What is the journal entry to record employer payroll taxes?
A. Debit Salaries Expense, credit Cash
B. Debit Payroll Tax Expense, credit FICA Payable and FUTA Payable
C. Debit Cash, credit Payroll Tax Expense
D. Debit FICA Payable, credit Payroll Tax Expense
Rationale: The employer records payroll tax expense separately by debiting
Payroll Tax Expense and crediting liabilities like FICA and FUTA Payable.
7. A bookkeeper notices a $500 transaction was recorded twice. What type of
error is this?
A. Error of omission
B. Error of principle
C. Error of duplication
D. Compensating error
Rationale: Entering a transaction twice results in an error of duplication.
8. Which of the following internal controls helps prevent fraud?
A. Using one person to handle all cash transactions
B. Segregation of duties
