Bookkeeping Certification Exam
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1. The journal entry to record a payment made in January for rent
for the months of February and March would include a - ANS
✓debit to Prepaid Rent and a credit to Cash.
2. The Accounts Payable account has a $5,000 credit balance. An
entry for the payment of $2,000 on the amount owed is recorded
and posted. The new balance of the Accounts Payable account is
- ANS ✓a $3,000 credit balance.
3. The Posting Reference column of a journal is used to - ANS
✓record the number of the ledger account to which the information
is posted.
4. The process of transferring data from the journal to the ledger is
known as - ANS ✓posting.
5. A firm purchased telephone equipment for cash. By mistake, the
person who recorded the transaction debited Utilities Expense
instead of Office Equipment. The error was discovered after the
data posted. The correcting entry should contain - ANS ✓a debit
to Office Equipment and a credit to Utilities Expense.
Bookkeeping Certification
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Bookkeeping
6. If a worksheet is prepared, there is no need to separately
prepare a(n) - ANS ✓trial balance.
7. Centrum Services purchased $36,000 worth of equipment. The
equipment has an estimated useful life of five years and no
salvage value. Using the straight-line method, the depreciation
for the first month is - ANS ✓$600.
8. On a worksheet, the adjusting entry to account for depreciation
of equipment consists of a - ANS ✓debit to Depreciation Expense
and a credit to Accumulated Depreciation.
9. The adjusting entry to account for use of prepaid insurance
consists of - ANS ✓a debit to Insurance Expense and a credit to
Prepaid Insurance.
10. If an adjusting entry relating to prepaid insurance is not
entered onto the worksheet, assets on the balance sheet - ANS
✓will be overstated.
11. The adjusting entry to account for use of supplies consists
of a - ANS ✓debit to Supplies Expense and a credit to Supplies.
12. If an account has a debit balance in the Trial Balance
section of the worksheet, the amount (that is, the adjusted
account balance) that will be entered in the Adjusted Trial
Balance section - ANS ✓depends on the nature of the entry in the
Adjustments section.
13. After all account balances have been transferred from the
Adjusted Trial Balance section of the worksheet to the financial
Bookkeeping Certification
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Bookkeeping
statement sections, the Income Statement section of the
worksheet includes the following totals. The Credit column total
is $120,000 and the total of the Debit column is $80,000. The
Income Statement section of the worksheet - ANS ✓would be
completed by entering $40,000 in the Debit column with the words
"Net Income" in the Account Name column.
14. On the worksheet, the Balance Sheet columns should
balance - ANS ✓after the net income amount is added to the Balance
Sheet Credit column.
15. The book value of long-term assets is reported on - ANS
✓the balance sheet.
16. One purpose of closing entries is to - ANS ✓transfer the
results of operations to owner's equity.
17. The Fees Income account is closed by - ANS ✓debiting Fees
Income and crediting Income Summary.
18. The owner's drawing account is closed by - ANS ✓debiting
the owner's capital account and crediting the owner's drawing
account.
19. Which of the following accounts would be closed? - ANS
✓Supplies Expense
20. The entry to close the Income Summary account may
include - ANS ✓a debit to Income Summary and a credit to the
owner's capital account.
Bookkeeping Certification
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