BBK99E1 BASIC BOOKKEEPING LEVEL 1 FINAL EXAMINATION WITH 50 MULTIPLE-CHOICE QUESTIONS, PRACTICAL BOOKKEEPING TASKS, AND COMPLETE ANSWER SOLUTIONS A+ VERIFIED LATEST VERSION

BBK99E1 BASIC BOOKKEEPING LEVEL 1 FINAL
EXAMINATION WITH 50 MULTIPLE-CHOICE
QUESTIONS, PRACTICAL BOOKKEEPING TASKS,
AND COMPLETE ANSWER SOLUTIONS A+ VERIFIED
LATEST VERSION


SECTION A: MULTIPLE-CHOICE QUESTIONS (50 MARKS)
Choose the correct answer for each question.

1.
Bookkeeping is mainly concerned with: A. Auditing company accounts
B. Recording financial transactions
C. Marketing products
D. Managing employees
Answer: B. Recording financial transactions

2.
Which book is used to record daily cash transactions? A. General Ledger
B. Cash Book
C. Purchases Journal
D. Sales Journal
Answer: B. Cash Book

3.
Assets are: A. Amounts owed by the business
B. Resources owned by the business
C. Expenses incurred
D. Business losses
Answer: B. Resources owned by the business

4.
Liabilities refer to: A. Income earned
B. Debts owed by the business

, C. Cash sales
D. Owner’s capital
Answer: B. Debts owed by the business

5.
Capital introduced by the owner increases: A. Expenses
B. Drawings
C. Equity
D. Liabilities
Answer: C. Equity

6.
Which accounting concept states that the business is separate from the owner? A.
Prudence Concept
B. Going Concern Concept
C. Business Entity Concept
D. Matching Concept
Answer: C. Business Entity Concept

7.
A debit entry in the cash account means: A. Cash decreased
B. Cash increased
C. Liabilities increased
D. Expenses decreased
Answer: B. Cash increased

8.
A credit entry in a sales account indicates: A. Sales return
B. Increase in sales revenue
C. Purchase of goods
D. Payment of wages
Answer: B. Increase in sales revenue

9.
Which document is issued when goods are sold on credit? A. Debit Note
B. Credit Note
C. Invoice
D. Receipt