by owaelchi
Bookkeeping is the backbone of any successful business, ensuring that financial transactions are accurately recorded and managed. This quiz will take you through the essentials of bookkeeping, helping you solidify your knowledge and apply it effectively. Ready to put your bookkeeping skills to the test? Let’s get started!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Bookkeeping Basics Quiz Questions Overview
1. What is the primary purpose of bookkeeping?
To prepare tax returns
To record financial transactions
To create budgets
To manage payroll
2. Which of the following is considered an asset?
Accounts Payable
Revenue
Inventory
Expenses
3. What does the term ‘double-entry bookkeeping’ refer to?
Recording each transaction twice
Recording debits and credits for each transaction
Using two sets of books
Recording transactions in two different currencies
4. Which financial statement shows a company’s financial position at a specific point in time?
Income Statement
Cash Flow Statement
Balance Sheet
Statement of Retained Earnings
5. What is the accounting equation?
Assets = Liabilities + Equity
Assets = Revenue – Expenses
Liabilities = Assets + Equity
Equity = Assets – Liabilities
6. Which of the following is a liability?
Accounts Receivable
Owner’s Equity
Accounts Payable
Sales Revenue
7. What does a trial balance help to ensure?
That all transactions are recorded
That debits equal credits
That financial statements are prepared
That taxes are calculated correctly
8. Which of the following would be recorded as a debit?
Increase in revenue
Decrease in expenses
Increase in assets
Decrease in liabilities
9. What is the purpose of a general ledger?
To summarize financial transactions
To record daily transactions
To prepare financial statements
To track inventory levels
10. Which document is used to record all cash receipts and payments?
Sales Journal
Cash Book
Purchase Journal
General Ledger
11. What is an example of an expense?
Accounts Receivable
Inventory
Rent
Owner’s Equity
12. What does the term ‘accrual basis’ mean in accounting?
Recording transactions when cash is received or paid
Recording transactions when they occur
Recording transactions at the end of the month
Recording transactions at the end of the year
13. Which of the following is a financial statement?
Budget
Invoice
Balance Sheet
Bank Statement
14. What is the purpose of a bank reconciliation?
To prepare financial statements
To ensure the accuracy of the cash book
To record cash transactions
To calculate taxes
15. Which of the following is a revenue account?
Accounts Payable
Service Fees
Prepaid Expenses
Owner’s Equity
16. What is a chart of accounts?
A financial statement
A list of all accounts used by a business
A summary of transactions
A record of inventory levels
17. Which of the following is an example of equity?
Accounts Receivable
Owner’s Capital
Accounts Payable
Inventory
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
