Bookkeeping Certification Practice Test Questions and Answers.

Bookkeeping Certification Practice Test Questions and Answers




Bookkeeping Certification Practice Test
Questions and Answers
Question 1
Springville Distributors made sales using a list prie of $880 and a trade discount of
30%. What amount should be recorded for the sale?
A) $594
B) $216
C) $264
D) $616
Correct Answer
D



Question 2
Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange
Commission (SEC) final say on matters of financial reporting by publicly owned
corporations.
A) True
B) False
Correct Answer
A



Question 3
When equipment is purchased for cash,
A) one asset increases and another asset decreases
B) assets decrease and expenses increase
C) assets and owner's equity increase
D) assets increase and liabilities decrease
Correct Answer
A




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, Bookkeeping Certification Practice Test Questions and Answers




Question 4
Tax planning is any activity associated with the preparation of tax returns and the
audit of those returns.
A) True
B) False
Correct Answer
B



Question 5
The frequency of deposits of federal income taxes withheld and social security and
Medicare taxes is determined by the amount owed.
A) True
B) False
Correct Answer
A



Question 6
Which of the following is not a reason why the book balance of cash may not agree
with the balance on the bank statement?
A) Outstanding checks
B) End of the month
C) Service charges and other deductions
D) Deposit in transit
Correct Answer
B



Question 7
Most cash transactions involve checks.
A) True
B) False
Correct Answer
A




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