California Certified Bookkeeper Exam
With Actual Questions & Verified
Answers, Plus Explained
Rationales/Expert Verified For
Guaranteed Pass 2026/Latest
Updated/Instant Download Pdf
1. Which financial statement shows a company’s financial position at
a specific point in time?
A. Income statement
B. Statement of cash flows
C. Balance sheet
D. Statement of retained earnings
The balance sheet reports assets, liabilities, and equity as of a
specific date, unlike other statements which cover a period of
time.
2. Which account type normally carries a debit balance?
A. Revenue
B. Assets
C. Liabilities
D. Equity
Assets increase with debits under the rules of double-entry
accounting.
3. Recording the daily financial transactions of a business is known
as:
, A. Posting
B. Journalizing
C. Reconciling
D. Auditing
Journalizing is the initial step where transactions are first
recorded chronologically.
4. Which document supports the recording of a cash sale?
A. Purchase order
B. Receiving report
C. Sales receipt
D. Credit memo
A sales receipt provides evidence of cash received from a
customer.
5. What is the normal balance of accounts payable?
A. Debit
B. Credit
C. Zero
D. Variable
Accounts payable is a liability, and liabilities normally have
credit balances.
6. Which accounting principle requires expenses to be recorded in
the same period as related revenues?
A. Consistency principle
B. Matching principle
C. Revenue recognition principle
D. Cost principle
The matching principle ensures expenses are aligned with the
revenues they help generate.
, 7. Cash received from customers on account should be recorded as:
A. Debit accounts receivable, credit revenue
B. Debit cash, credit accounts receivable
C. Debit cash, credit revenue
D. Debit revenue, credit cash
When customers pay on account, cash increases and receivables
decrease.
8. Which account is reduced when depreciation is recorded?
A. Cash
B. Accumulated depreciation
C. Equipment
D. Supplies expense
Depreciation increases accumulated depreciation, a contra-asset
that reduces asset book value.
9. What does a trial balance verify?
A. Profitability
B. Cash position
C. Equality of debits and credits
D. Accuracy of all transactions
A trial balance confirms that total debits equal total credits, not
that all entries are correct.
10. Which inventory valuation method assumes the oldest
inventory is sold first?
A. LIFO
B. Weighted average
C. FIFO
D. Specific identification
FIFO assigns the earliest inventory costs to cost of goods sold.
With Actual Questions & Verified
Answers, Plus Explained
Rationales/Expert Verified For
Guaranteed Pass 2026/Latest
Updated/Instant Download Pdf
1. Which financial statement shows a company’s financial position at
a specific point in time?
A. Income statement
B. Statement of cash flows
C. Balance sheet
D. Statement of retained earnings
The balance sheet reports assets, liabilities, and equity as of a
specific date, unlike other statements which cover a period of
time.
2. Which account type normally carries a debit balance?
A. Revenue
B. Assets
C. Liabilities
D. Equity
Assets increase with debits under the rules of double-entry
accounting.
3. Recording the daily financial transactions of a business is known
as:
, A. Posting
B. Journalizing
C. Reconciling
D. Auditing
Journalizing is the initial step where transactions are first
recorded chronologically.
4. Which document supports the recording of a cash sale?
A. Purchase order
B. Receiving report
C. Sales receipt
D. Credit memo
A sales receipt provides evidence of cash received from a
customer.
5. What is the normal balance of accounts payable?
A. Debit
B. Credit
C. Zero
D. Variable
Accounts payable is a liability, and liabilities normally have
credit balances.
6. Which accounting principle requires expenses to be recorded in
the same period as related revenues?
A. Consistency principle
B. Matching principle
C. Revenue recognition principle
D. Cost principle
The matching principle ensures expenses are aligned with the
revenues they help generate.
, 7. Cash received from customers on account should be recorded as:
A. Debit accounts receivable, credit revenue
B. Debit cash, credit accounts receivable
C. Debit cash, credit revenue
D. Debit revenue, credit cash
When customers pay on account, cash increases and receivables
decrease.
8. Which account is reduced when depreciation is recorded?
A. Cash
B. Accumulated depreciation
C. Equipment
D. Supplies expense
Depreciation increases accumulated depreciation, a contra-asset
that reduces asset book value.
9. What does a trial balance verify?
A. Profitability
B. Cash position
C. Equality of debits and credits
D. Accuracy of all transactions
A trial balance confirms that total debits equal total credits, not
that all entries are correct.
10. Which inventory valuation method assumes the oldest
inventory is sold first?
A. LIFO
B. Weighted average
C. FIFO
D. Specific identification
FIFO assigns the earliest inventory costs to cost of goods sold.
