About Bookkeeping

Since the entrance barriers are minimal and the remuneration is good, bookkeeping is where most accountants begin their careers. Some individuals use the phrase "bookkeeping" in a way that signifies something else entirely.

Bookkeeping as accounting

Accounting and bookkeeping are often conflated in the minds of the public. In their minds, bookkeeping includes everything from maintaining a company's financial records to drafting its financial statements and tax returns. Accountants, on the other hand, hold a different opinion.

Bookkeeping is just the maintenance of journals & ledger

Others believe that accounting consists solely of entering transactions into ledgers after they have been recorded in diaries or daybooks. After the numbers are posted, an accountant with a college degree takes over the bookkeeping duties. The financial statements and other reports will be prepared by the accountant when he or she completes the adjusting entries.

Bookkeeping in the modern era

Accounting and bookkeeping are no longer different professions because to the widespread usage of computers and accounting software. Simple bookkeeping tasks like entering vendor bills or creating sales invoices may be completed by anybody, regardless of their level of experience, thanks to accounting software, which automatically updates general ledger accounts whenever new data is entered. The program will be able to create financial statements with the press of a button after the format of the financial statements has been determined.

Bookkeeping in the corporate world

Larger organizations may not use the phrase "bookkeeping" at all. Many companies employ accounting clerks to handle tasks including paying bills, collecting money owed, and processing payroll. One or more accountants will supervise the accounting clerks.

Following are some of the multiple choice questions on the Bookkeeping with answers that will help the students in developing their knowledge.

Bookkeeping MCQ

1. An example of asset that can be used in the business for a long period of time. Usually more than a year.

  • Inventories
  • Computer
  • receivables
  • Cash

2. The bookkeeping system used up to today is called ____________.

  • Single-bookkeeping
  • Debit-credit bookkeeping
  • Double-line bookkeeping
  • Double-entry bookkeeping

3. Bookkeeping primarily involves all part of the accounting process EXCEPT

  • Recording
  • Interpreting
  • Summarizing
  • Classifying

4. Which of the following definitions best describes a write-off?

  • An insurance adjustment 
  • An extension of professional courtesy 
  • A cancellation of a fee
  • An extension of credit 

5. Who is a person whose job is to keep records of the financial affairs of a business?

  • Accountant
  • Bookkeeper
  • Marketer
  • Seller

6. It is the obligations of the company, payable in money, goods or services.

  • Assets
  • Liabilities
  • Owner’s Equity
  • Revenue

7. The most liquid form of asset that can be used anytime to purchase another assets or pay liabilities.

  • Inventories
  • Receivables
  • Payable
  • Cash

8. Which of the following is a task of the accountant?

  • Archives and stores for easy retrieval
  • Prepares and provides on-going report
  • Classifies and records transactions accurately
  • Prepares tax reports and represents you to tax authorities

9. The accounting equation is defined as

  • Assets = Liabilities - Equity
  • Assets = Liabilities + Equity
  • Assets + Liabilities = Equity
  • Assets + Liabilities - Equity

10. Collected cash from the billed customer.Value Received: CashValue Parted: ?

  • Accounts Receivable
  • Accounts Payable
  • Service Income
  • Owner's Capital

11. Building sold on credit through a promissory note.Value Received: ?Value Parted: Building

  • Notes Payable
  • Notes Receivable
  • Accounts Receivable
  • Accounts Payable

12. Who is the Father of Modern Accounting?

  • Luca Paciolli
  • Lucca Pacioli
  • Luca Pacioli
  • Luca Pacilli

13. RM50 cash taken from the cash till and banked is entered

  • Debit cash column RM50 ; Credit bank column RM50
  • Debit bank column RM50 ; Credit cash column RM50
  • Debit cash column RM50 ; Credit cash column RM50
  • Debit bank column RM50 ; Credit bank column RM50

14. What is the recording of the financial transactions of a business in a chronological and systematic manner?

  • Accounting
  • Bookkeeping
  • Posting
  • Reporting

15. Which of the following is a task of the bookkeeper?

  • Prepares and provides on going report
  • Focus on the analysis of financial data
  • Provides overview of bookkeeping process
  • Assist with key financial planning decisions

16. Are things or properties that the business owns, example includes cash, account receivable and prepaid expenses.

  • Assets
  • Liabilities
  • Owner’s Equity
  • Revenue

17. A source document which shows that the customer has already made partial payment to the supplier through issuance of-

  • Check
  • Voucher
  • Official Receipt
  • Sales Invoice

18. Bookkeeping is a detail-oriented career that requires knowledge and skills to do the job correctly.

  • Competence
  • Integrity
  • Independence
  • Objectivity

19. Which manual bookkeeping system has a built-in way to check for errors?

  • Single-entry system 
  • Pegboard system 
  • Double-entry systems 
  • none of the above

20. Who is the father of bookkeeping and accounting?

  • Lucas
  • Luca Bartolome Pacioli
  • Luca Bartolomi Pacioli
  • Lucas Bartolomes Pacholi

21. Which of the following cannot be entered into Trial Balance?

  • Opening Inventory
  • Closing Inventory
  • Capital
  • Drawings

22. High Net Sales but low Gross Profit, this means_________.

  • Low Cost of Sales
  • High Cost of Sales
  • Low Operating Expenses
  • High Operating Expenses

23. Which of the following is not a Non-Current Asset?

  • Bank
  • Office Equipment
  • Freehold land
  • Premises

24. Repairs of van is a/an_________.

  • Expenses
  • Income
  • Asset
  • Liability

25. ___________ is used in checking on the posting to see if they are correct.

  • Trial Balance
  • Profit and Loss Account
  • Trading Account
  • Statement of Financial Position

26. Which of the following is an Asset?

  • Land
  • Stationery
  • Rent Received
  • Drawings

27. Enterprise usually pays its short-term debts_______.

  • Within half year
  • After half year
  • Within one year
  • After one year

28. If the owner himself supplies all the resources for the use of his business, then the accounting equation would be ___________.

  • Capital = Assets
  • Capital = Liabilities
  • Capital = Assets - Liabilities
  • Capital = Assets + Liabilities

29. __________ are shown in Statement of Financial Position.

  • Revenues and Assets
  • Assets, Liabilities and Owner’s Equity
  • Revenues and Expenses
  • Capital, Revenues and Expenses

30. Which of the following is not an Accounting Transaction?

  • Cash Sales
  • Order accepted
  • Cash Purchases
  • Owner withdraws cash for own use

31. A credit balance of RM 400 on the cash columns of the cash book would mean

  • The book-keeper has made a mistake
  • We have RM 400 cash in hand
  • We have spent RM 400 more than we have received
  • Someone has stolen RM 400 cash

32. Which of the following should not be called “Sales”?

  • Office Fixture sold
  • Goods sold on credit
  • Goods sold for cash
  • Sale of item previously included in ‘Purchases’

33. An alternative name for a Sales Journal is

  • Sales Invoice
  • Daily Sales
  • Sales Ledger
  • Sales Day Book

34. Expenses recorded in the Petty Cash Book are posted to ________________.

  • A the debit side of Cash Book
  • the debit side of expenses accounts in General Ledger
  • The credit side of expenses accounts in General Ledger
  • The credit side of personal accounts in Creditors Ledger

35. Which of the following is a debit balance?

  • Accounts Payable
  • Salaries
  • Bank Overdraft
  • Loan from Ali

36. Which of the following balances is to be shown in the Statement of Financial Position as Non- Current liability?

  • Other Payable
  • Accounts Payable
  • Bank Overdraft
  • Bank Loan

37. Discount Received are

  • Deducted when we receive cash
  • Deducted to us when we pay our accounts
  • Given by us when we sell goods on credit
  • None of the above

38. A physician might extend a professional courtesy to the medical office assistant.  

  • True
  • False 

39. In which of the following ledgers must an OUTSTANDING balance be recorded?

  • Patient Ledger 
  • Both Check Ledger and accounts payable ledger 
  • Accounts Receivable Ledger 
  • Both patient and accounts receivable 

40. Payments received by mail do not have to be posted in the patient ledger. 

  • True 
  • False 

41. What should be done with the old NSF check after an alternate from of payment has arrived and been fully processed? 

  • It should be destroyed 
  • It should be filed with the cancelled checks for the auditor 
  • It should be sent back to the check writer 
  • It should be forwarded to the bank

42. Which of the following best describes an account payable ledger? 

  • A book of all remaining patient balances. 
  • A book of daily financial summaries.
  • A book of all office debts that have not been paid
  • A book of payments received from patients. 

43. If a physician treats a fellow health care worker and does not collect the remaining fee after that worker's insurance contribution is received, this is what kind of adjustment?

  • An Extension of credit
  • An NSF check adjustment
  • Professional courtesy
  • A write-off of bad debt

44. When stamped on a check what dose NSF stand for? 

  • National Service Framework
  • National Securities Federation 
  • No Sale Final 
  • Non-sufficient funds 

45. When do day sheets need to be update?

  • As each transaction takes place
  • At the end of the week
  • After 5 or more transactions
  • At the end of each day

46. A type of business that is engage in buying and selling of food products such as Grocery/convenient stores.

  • Service Business
  • Merchandising business
  • Manufacturing business
  • Forex Trading Business

47. A source document evidencing that orders have been placed by the customer waiting to be served by the supplier-

  • Purchase request
  • Purchase order
  • Purchase invoice
  • Purchase check

48. The source document evidencing that goods have been delivered by the supplier to the customer-

  • Supplier’s sales invoice
  • Vale slip
  • Customer’s sales invoice
  • Customer’s delivery receipt

49. It is the claim of the owner of the business also known as the capital.

  • Assets
  • Liabilities
  • Owner’s Equity
  • Revenue

50. A type of business that is purely engage in providing all types of service activities such as medical or legal services.

  • Service Business
  • Merchandising business
  • Manufacturing business
  • Trading Business

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