Bookkeeping Quiz

What is bookkeeping?

• The process of making business decisions

• The recording of financial transactions

• The marketing of business products

• The preparation of legal documents

Ana runs a small bakery and records her daily sales. What type of financial record is she maintaining?

• Balance Sheet

• Income Statement

• Ledger

• Journal

Which of the following is NOT part of a journal entry?

• Date

• Account Title

• Debit and Credit

• Business Name

Why is bookkeeping important for business success?

• It eliminates the need for financial reports

• It helps in tracking financial transactions

• It increases business profitability

• It prevents the need for taxes

What would happen if a business records an expense as income?

• It will show higher profits than actual

• It will decrease revenue

• It will have no effect on financial reports

• It will lower the company’s tax payments

When an asset account is increased, how it should be recorded?

• Debit

• Credit

• Both debit and credit

• None of these

If revenue is debited, it means;

• An increase in revenue

• A decrease in revenue

• Decrease on both sides

• Increase in capital

Bea invest on a new machinery worth P80,000 paying P50,000 in cash and balance in account. Which of the following is INCORRECT?

• Accounts receivable increased by 30,000

• Accounts payable increase by 30,000

• Machinery increased by 80,000

• Cash decrease by 50,000

An accounting system where every financial transaction affects at least two accounts, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced.

• Single-entry bookkeeping

• Double-entry Bookkeeping

• Journalizing

• bookkeeping

10.Which of the following is correct, when it comes to their normal balances?

• Asset debit, liabilities debit, expenses credit, revenue credit, owner’s equity debit

• Asset credit, liabilities debit, expenses credit, revenue debit, owner’s equity debit

• Asset credit, liabilities credit, expenses credit, revenue credit, owner’s equity debit

• Asset debit, liabilities credit, owner’s equity credit, revenue credit, and expenses debit