Prepare for your Bookkeeping assessment test with these practice questions and answers. This guide covers chart of accounts, journal entries, financial statements, bank reconciliation, and payroll basics.
Q: Good morning,Yesterday I renewed our building lease for the next 3 years. I know we might move sooner than that, but it was cheaper this way. You mentioned that we only have the funds to operate for the next 16 months, but I am confident things will look up soon.Thanks,Shiela DawsonCEOAccording to the going concern principle, how should Sporting Supply recognize its building lease?
Answer: In equal parts over the next 36 months
Q: JustCookies signs a contract to sell $20,000 worth of cookies to a restaurant in June. The cookies are delivered in July and the restaurant pays in August.When should JustCookies record the revenue?
Answer: When the delivery is completed
Q: Allen’s Roofing posts $5000 in net income and $200 in dividends for the year.How does this affect the retained earnings on the balance sheet.
Answer: Retained earnings increases by $4,800.00
Q: John buys fixed assets in 2017. What fixed assets could he have bought that will not increase accumulated depreciation in 2018?
Answer: Land
Q: What account has a debit as a normal account balance
Answer: Fixed Assets
Q: Wacky Entertainment Inc. is in the middle of a copyright lawsuit. Next month, the company anticipates winning $500,000 in the settlement
Answer: As a footnote of the financial statements
Q: In the statement below, which activity is miscategorized?
Answer: Cash paid for purchase of property and equipment should not be under operations
Q: Which expense can be recognized in full in March?
Answer: Office supplies for the HR department