Bookkeeping quiz Financial Accounting Quiz Last updated Feb 2, 2026 Share Bookkeeping quiz Bookkeeping 20 multiple-choice questions Pass Score 70% The questions change when you repeat the exam 1 / 20 Returns of goods sold are recorded in : Ledger Purchases returns book Cash book Sales returns book Sales returns book records goods returned by customers. 2 / 20 Which document is used to record transactions first ? Ledger Journal Balance sheet Trial balance The journal is the book of original entry. 3 / 20 Real accounts include : Capital Machinery Debtors Creditors Real accounts relate to assets. 4 / 20 Which accounting equation is fundamental to bookkeeping ? Revenue − Expenses = Profit Income = Assets − Liabilities Cash + Inventory = Capital Assets = Liabilities + Equity Every transaction must balance this equation. 5 / 20 Which system records each transaction twice ? Accrual system Double-entry system Cash system Single-entry system Double-entry records debit and credit. 6 / 20 Which account is debited when cash is received ? Revenue Capital Cash Expenses Cash increases, so it is debited. 7 / 20 What is bookkeeping primarily concerned with ? Financial analysis Preparing budgets Auditing accounts Recording financial transactions Bookkeeping focuses on systematic recording of transactions. 8 / 20 The ledger is also known as : Book of original entry Subsidiary book Principal book Final account Ledger is the main book of accounts. 9 / 20 Which account normally has a credit balance ? Drawings Expenses Liabilities Assets Liabilities increase on the credit side. 10 / 20 Which book records credit sales ? Purchase journal Sales journal General journal Cash book Sales journal is for credit sales. 11 / 20 Credit purchases are recorded in : Sales journal Ledger Purchase journal Cash book Purchase journal records credit purchases only. 12 / 20 Trial balance has : Only cash balances Only debit balances Both debit and credit balances Only credit balances It includes all ledger balances. 13 / 20 Bookkeeping is a part of : Accounting Auditing Financial management Economics Bookkeeping is the foundation of accounting. 14 / 20 Cash transactions are recorded in: Purchase journal Sales journal General ledger Cash book Cash book records cash receipts and payments. 15 / 20 Posting means : Balancing accounts Closing books Transferring entries to ledger Recording transactions in journal Posting moves journal entries to ledger accounts. 16 / 20 Which account is credited when goods are sold on credit ? Sales Purchases Accounts payable Cash Sales revenue increases, so it is credited. 17 / 20 If trial balance agrees, it means : All errors are corrected Profit is correct Arithmetic accuracy only No errors exist Some errors may still exist. 18 / 20 Trial balance is prepared to: Calculate profit Check arithmetic accuracy Detect all errors Prepare ledger It checks debit and credit equality. 19 / 20 Personal accounts relate to : Expenses Assets Incomes Persons or organizations Personal accounts represent individuals or entities. 20 / 20 Rule of personal account : Debit expenses, credit income Debit what comes in Credit what goes out Debit the receiver, credit the giver This rule applies to personal accounts. Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback Bookkeeping quiz
