BOOKKEEPING CERTIFICATION
PRACTICE TEST (NACPB) UPDATED
ACTUAL Questions And CORRECT Answers Account reconciliation - CORRECT ANSWERS Compare two sets of records at the end of a particular accounting period. Verify that account balances are correct, identify discrepancies, and make adjustments to the account as required in order to record the correct values in the books.
Account reconciliation - CORRECT ANSWERS Compare two sets of records at the end of a particular accounting period . Verify that account balances are correct, identify discrepancies, and make adjustments to the account as required in order to record the correct values in the books .
Accountant - CORRECT ANSWERS An accountant keeps track of business transactions and financial records to issue financial statements and determine how a business is doing on a financial level .
Accounts payable - CORRECT ANSWERS Money a business owes to others for goods or services .
Accounts payable reconciliation - CORRECT ANSWERS Compare statements or invoices provided by vendors to the accounts payable in the books . Verify there are no discrepancies in the amount a vendor is charging for the goods or services received, and the amount recorded in the books matches the amount charged by the vendor .
Accounts receivable - CORRECT ANSWERS Money that is owed to a business for providing a good or service .
Accounts receivable aging report - CORRECT ANSWERS Accounts receivable aging is a periodic report that categorizes a business's accounts receivable according to the length of time an invoice has 1 / 3
been outstanding . It is used as a gauge to determine the financial health and reliability of a business's customers .
Accounts receivable doubtful - CORRECT ANSWERS An allowance for doubtful accounts is considered a "contra asset," because it reduces the amount of an asset, in this case the accounts receivable . The allowance, sometimes called a bad debt reserve, represents management's estimate of the amount of accounts receivable that will not be paid by customers.
Accounts receivable reconciliation - CORRECT ANSWERS Compare the outstanding customer invoices and balances to the accounts receivable as entered in the general ledger. Verify amounts, uncover errors and irregularities, and identify fraudulent activity.
Accounts uncollectible - CORRECT ANSWERS Accounts uncollectible are receivables, loans, or other debt that will not be paid by a debtor.
Accrual - CORRECT ANSWERS An entry to record a future revenue or expense in the current period, even if money hasn't been paid or received yet.
Accrual accounting - CORRECT ANSWERS Revenues and expenses are reported or recognized on financial reports when they are earned or incurred, rather than when the payment is made or received.
Accumulated depreciation - CORRECT ANSWERS Accumulated depreciation is the total amount of depreciation expense that has been allocated for an asset since the asset was put into use.
Adjusted trial balance - CORRECT ANSWERS Listing of the ending balances in all accounts after adjusting entries have been prepared.
Adjusting entries - CORRECT ANSWERS Creating new entries to record depreciation and accrual adjustments; these are provided to bookkeepers by a CPA or accountant.
Amortization - CORRECT ANSWERS The structure process of paying both the principal and interest over a period of time. 2 / 3
Assets - CORRECT ANSWERS Anything the business owns of value or a resource of value that has the potential to be transformed into cash.
Average cost method (AVCO) - CORRECT ANSWERS Inventory value is based on the average cost of all materials purchased during the reporting period.
Bad debt - CORRECT ANSWERS Bad debt is the term used for any loans or outstanding balances that a business deems uncollectible. For businesses that provide loans and credit to customers, bad debt is normal and expected. Bad debt expenses A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems. Companies that extend credit to their customers report bad debts as an allowance for doubtful accounts on the balance sheet, which is also known as a provision for credit losses.
Balance sheet - CORRECT ANSWERS The balance sheet is a financial statement that reports a business's assets, liabilities, and equity at a specific point in time.
Balances (account balances) - CORRECT ANSWERS A total amount in an account at any given time.
Bank deposit receipt (slip) - CORRECT ANSWERS A bank form used to document the money the customer intends to deposit into their bank account.
Bank reconciliation - CORRECT ANSWERS Compare the books to the statement issued by the bank. Compare every transaction in the bank statement to the business's internal records (including bank deposit slips and canceled checks) to verify both records are matching.
Bill - CORRECT ANSWERS Record to show what business owes vendor for goods/services.
Book balance - CORRECT ANSWERS The ledger balance as of a certain date.
- / 3