BOOKKEEPING ACTUAL TEST PAPER 2026
COMPLETE QUESTIONS AND SOLUTIONS
◉Accounts receivable. Answer: Money that is owed to a business for
providing a good or service.
◉General bookkeeping responsibilities - Record financial
transactions. Answer: Document all financial transactions in the
appropriate books or software to ensure accurate records of income
and expenses.
◉General bookkeeping responsibilities - Reconcile bank accounts.
Answer: Match and verify the business's financial records with its
bank statements to ensure consistency and accuracy.
◉General bookkeeping responsibilities - Manage accounts
receivable and accounts payable. Answer: Track money owed to the
business (receivables) and money the business owes to others
(payables) for efficient cash flow management.
◉General bookkeeping responsibilities - Work with tax preparers
and assist with tax compliance. Answer: Collaborate with tax
professionals to ensure that the business meets tax obligations,
including accurate filings and adherence to regulations.
,◉General bookkeeping responsibilities - Generate financial
statements. Answer: Prepare key financial reports like income
statements, balance sheets, and cash flow statements to provide
insights into the business's financial health.
◉Bookkeeper Oath. Answer: I will uphold the bookkeeper oath by
choosing to act with honesty, objectivity, confidentiality, and
professionalism in all interactions with my clients and on behalf of
my clients to the best of my ability and judgment.
◉Foundation of a balance sheet. Answer: Assets = Liabilities +
Equity
Assets: Anything the business owns of value or a resource of value
that has the potential to be transformed into cash.
Liabilities: What the business owes to others.
Equity: Owner's stake in the business, representing how much they
have invested or withdrawn.
◉Balance Sheet. Answer: A financial statement that reports the
assets and claims to those assets at a specific point in time.
,◉Revenue. Answer: The total income generated by a business from
its normal operations, typically from selling goods or services.
◉Expenses. Answer: The costs incurred by a business in the process
of earning revenue, such as salaries, rent, utilities, and supplies.
◉Debits. Answer: Debits represent an increase in assets or
expenses, or a decrease in liabilities, owner's equity, or revenue.
◉Credits. Answer: Credits represent a decrease in assets, or
expenses, or an increase in liabilities, owner's equity, or revenue.
◉T/F
The cardinal rule of bookkeeping: debits and credits need to be
equal. It's like a balancing act where the numbers on both sides of
the stage should always match up. Answer: True
◉T/F
When recording the purchase of office supplies on account, you
would credit the accounts payable (liability) to reflect the increase in
the amount owed.. Answer: True: Purchasing on account increases
, liabilities. Credit accounts payable to reflect the amount owed and
debit office supplies to record the purchase.
◉T/F
You should debit the salary expense (expense) and credit the cash
(asset) when recording the payment of salaries to employees..
Answer: Debit salary expense to recognize the cost of paying
employees and credit cash to reduce the asset as payment is made.
◉Four accounting principles: Economic entity assumption. Answer:
This principle states that a business is treated as a separate entity
from its owner or other businesses, ensuring its financial records
are distinct.
◉Four accounting principles: Reliability assumption. Answer: The
Reliability Assumption mandates that companies record only
verifiable transactions supported by invoices, billing statements,
receipts, and bank statements.
◉Four accounting principles: Full disclosure principle. Answer: This
principle requires that all relevant financial information is fully
disclosed to stakeholders to provide a complete picture of the
business's financial situation.
COMPLETE QUESTIONS AND SOLUTIONS
◉Accounts receivable. Answer: Money that is owed to a business for
providing a good or service.
◉General bookkeeping responsibilities - Record financial
transactions. Answer: Document all financial transactions in the
appropriate books or software to ensure accurate records of income
and expenses.
◉General bookkeeping responsibilities - Reconcile bank accounts.
Answer: Match and verify the business's financial records with its
bank statements to ensure consistency and accuracy.
◉General bookkeeping responsibilities - Manage accounts
receivable and accounts payable. Answer: Track money owed to the
business (receivables) and money the business owes to others
(payables) for efficient cash flow management.
◉General bookkeeping responsibilities - Work with tax preparers
and assist with tax compliance. Answer: Collaborate with tax
professionals to ensure that the business meets tax obligations,
including accurate filings and adherence to regulations.
,◉General bookkeeping responsibilities - Generate financial
statements. Answer: Prepare key financial reports like income
statements, balance sheets, and cash flow statements to provide
insights into the business's financial health.
◉Bookkeeper Oath. Answer: I will uphold the bookkeeper oath by
choosing to act with honesty, objectivity, confidentiality, and
professionalism in all interactions with my clients and on behalf of
my clients to the best of my ability and judgment.
◉Foundation of a balance sheet. Answer: Assets = Liabilities +
Equity
Assets: Anything the business owns of value or a resource of value
that has the potential to be transformed into cash.
Liabilities: What the business owes to others.
Equity: Owner's stake in the business, representing how much they
have invested or withdrawn.
◉Balance Sheet. Answer: A financial statement that reports the
assets and claims to those assets at a specific point in time.
,◉Revenue. Answer: The total income generated by a business from
its normal operations, typically from selling goods or services.
◉Expenses. Answer: The costs incurred by a business in the process
of earning revenue, such as salaries, rent, utilities, and supplies.
◉Debits. Answer: Debits represent an increase in assets or
expenses, or a decrease in liabilities, owner's equity, or revenue.
◉Credits. Answer: Credits represent a decrease in assets, or
expenses, or an increase in liabilities, owner's equity, or revenue.
◉T/F
The cardinal rule of bookkeeping: debits and credits need to be
equal. It's like a balancing act where the numbers on both sides of
the stage should always match up. Answer: True
◉T/F
When recording the purchase of office supplies on account, you
would credit the accounts payable (liability) to reflect the increase in
the amount owed.. Answer: True: Purchasing on account increases
, liabilities. Credit accounts payable to reflect the amount owed and
debit office supplies to record the purchase.
◉T/F
You should debit the salary expense (expense) and credit the cash
(asset) when recording the payment of salaries to employees..
Answer: Debit salary expense to recognize the cost of paying
employees and credit cash to reduce the asset as payment is made.
◉Four accounting principles: Economic entity assumption. Answer:
This principle states that a business is treated as a separate entity
from its owner or other businesses, ensuring its financial records
are distinct.
◉Four accounting principles: Reliability assumption. Answer: The
Reliability Assumption mandates that companies record only
verifiable transactions supported by invoices, billing statements,
receipts, and bank statements.
◉Four accounting principles: Full disclosure principle. Answer: This
principle requires that all relevant financial information is fully
disclosed to stakeholders to provide a complete picture of the
business's financial situation.
