Bookkeeping Basic Test #1

Question 1

Is there usually a debit or credit balance on a contra revenue account?

Accepted Answer

Debit

Answer

Credit

Question 2

What are the uses of a purchase order?

Accepted Answer

To place an order for goods with a supplier.

Answer

By a supplier to invoice for goods supplied

Answer

To record the purchase of goods from you by a customer.

Question 3

What are accounting source documents?

Accepted Answer

Documentary evidence of financial transactions.

Answer

Listings of financial transactions.

Answer

Pages in the general ledger

Question 4

What is the definition of a contra revenue account?

Accepted Answer

An account which is offset against a revenue account

Answer

An account which analyses a revenue account

Answer

An expense account

Question 5

What is the use of the petty cash reconciliation form?

Accepted Answer

To reconcile petty cash and paid vouchers to the authorized petty cash float.

Answer

To reconcile the petty cash to the bank statement

Answer

To reconcile the petty cash book to the cash book

Question 6

Which of the following is a source document for accounting?

Accepted Answer

Delivery note

Answer

Sales day book

Answer

Cash book

Question 7

Which of the following is not included in the double entry accounting system? (Assume that control accounts aren't included in the double entry.)

Accepted Answer

Sales returns day book

Answer

Purchase ledger

Answer

Cash book

Question 8

When is a sale reported on the cash basis of accounting?

Accepted Answer

When the cash is received from the customer

Answer

The sale is made to the customer

Answer

When the goods are sent to the customer

Question 9

In the accounting cycle, which of these comes first?

Accepted Answer

Transactions

Answer

Trial balance

Answer

Journals