Bookkeeper Practice Test
Laws passed by congress in 1933 and 1934 gave the SEC final say on matters of
financial reporting by publicly owned corporations.
True/False - Answer -True
Tax planning is any activity associated with the preparation of tax returns and the audit
of those returns.
True/False - Answer -False
All financial statements submitted to the SEC by publicly owned corporations must
include an auditor's report prepared by
a) an internal auditor
b) the firm's managerial accountant
c) an independent certified public accountant
d) anyone in the accounting department - Answer -c
Amounts that a business must pay in the future are known as
a) accounts receivable
b) accounts payable
c) capital
d) expenses - Answer -b
If during the year total assets increased by $75,000 and total liabilities decreased by
$16,000 by how much did the owner's equity increase?
a) $91,000
b) $59,000
c) $75,000 - Answer -a
When equipment is purchased for cash,
a) assets decrease and expenses increase
b) one asset increases and another asset decreases
c) assets and owner's equity increase
d) assets increase and liabilities decrease - Answer -b
On a typical chart of accounts, the accounts are arranged in the same order as they
appear in the trial balance.
True/False - Answer -True
