SS1 first term book keeping past questions and answers

SS1 first term book keeping past questions and answers

here are 20 bookkeeping questions for SS1 (Secondary School 1) with options and answers:

Question: What is the primary purpose of bookkeeping?

A) Marketing

B) Record keeping

C) Cooking

D) Sports

Answer: B) Record keeping

Question: Which account represents money owed by the business to external entities?

A) Assets

B) Liabilities

C) Equity

D) Revenue

Answer: B) Liabilities

Question: What is the accounting equation?

A) Assets = Liabilities + Equity

B) Revenue - Expenses = Profit

C) Assets + Expenses = Liabilities

D) Equity - Liabilities = Assets

Answer: A) Assets = Liabilities + Equity

Question: In which financial statement would you find net profit or loss?

A) Income statement

B) Balance sheet

C) Cash flow statement

D) Statement of changes in equity

Answer: A) Income statement

Question: What is the purpose of a trial balance?

A) To prepare financial statements

B) To check the arithmetic accuracy of ledger entries

C) To determine the cash flow

D) To record daily transactions

Answer: B) To check the arithmetic accuracy of ledger entries

Question: Which side of the accounting equation represents the owner's claim on the assets?

A) Left side

B) Right side

C) Top side

D) Bottom side

Answer: A) Left side

Question: When is revenue recognized in accounting?

A) When it is earned

B) When it is received

C) When it is invoiced

D) When expenses are paid

Answer: A) When it is earned

Question: What is the purpose of the cash book in bookkeeping?

A) To record only cash transactions

B) To record only credit transactions

C) To record both cash and credit transactions

D) To record only expenses

Answer: C) To record both cash and credit transactions

Question: Which of the following is a contra account to an asset account?

A) Accrued expenses

B) Accumulated depreciation

C) Prepaid expenses

D) Unearned revenue

Answer: B) Accumulated depreciation

Question: What is the purpose of depreciation in accounting?

A) To decrease assets

B) To allocate the cost of an asset over its useful life

C) To increase liabilities

D) To calculate net profit

Answer: B) To allocate the cost of an asset over its useful life

Question: Which financial statement shows the financial position of a business at a specific point in time?

A) Income statement

B) Cash flow statement

C) Balance sheet

D) Statement of changes in equity

Answer: C) Balance sheet

Question: What is the accounting principle that assumes a business will continue operating indefinitely?

A) Matching principle

B) Going concern principle

C) Revenue recognition principle

D) Conservatism principle

Answer: B) Going concern principle

Question: How are expenses classified in the income statement?

A) Liabilities

B) Assets

C) Equity

D) Costs or expenditures

Answer: D) Costs or expenditures

Question: Which of the following is a current liability?

A) Long-term loan

B) Accounts payable

C) Equipment

D) Common stock

Answer: B) Accounts payable

Question: What is the purpose of a bank reconciliation?

A) To record sales transactions

B) To compare the bank's records with the company's records

C) To calculate depreciation

D) To prepare financial statements

Answer: B) To compare the bank's records with the company's records

Question: How is the owner's equity calculated?

A) Assets - Liabilities

B) Liabilities - Assets

C) Assets + Liabilities

D) Revenues - Expenses

Answer: A) Assets - Liabilities

Question: What does the term "double-entry" mean in accounting?

A) Recording transactions in two different ledgers

B) Recording each transaction in two accounts

C) Recording transactions only once

D) Recording transactions in the cash book only

Answer: B) Recording each transaction in two accounts

Question: When a business receives cash from a customer, which accounts are affected?

A) Cash and Revenue

B) Cash and Expenses

C) Accounts Payable and Cash

D) Revenue and Liabilities

Answer: A) Cash and Revenue

Question: What is the purpose of the general ledger in bookkeeping?

A) To record only cash transactions

B) To record only credit transactions

C) To provide a summary of all transactions in the accounts

D) To record only expenses

Answer: C) To provide a summary of all transactions in the accounts

Question: In which accounting equation does the total assets equal total liabilities?

A) Assets = Liabilities + Equity

B) Assets - Liabilities = Equity

C) Assets + Equity = Liabilities

D) Liabilities = Assets - Equity

Answer: A) Assets = Liabilities + Equity