Accounting and Bookkeeping MCQ Quiz With Answers

With well-managed bookkeeping, your business can closely monitor its financial capabilities and journey toward heightened profits, breakthrough growth, and deserved success. A small business can likely do all its own bookkeeping using accounting software. Many of the operations are automated in the software, making it easy to get accurate debits and credits entered.

Overhauling all at once can be overwhelming and discouraging, so it’s best to take it slow and make meaningful and intentional shifts. Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager. Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University.

types of bookkeeping for small businesses

The other costs are all examples of direct costs to be fully assigned to the respective functional class. This 21-question quiz samples from general bookkeeping knowledge as well as nonprofit bookkeeping and compliance matters. Use this assessment test as part of your hiring toolkit as well as for identifying staff training needs. For a long-term career, accounting offers much more upward mobility and income potential. The education required to be competitive in the field is greater, but the payoff down the road can be considerably higher.

• The following analysis compares the education requirements, skills required, typical starting salaries, and job outlooks for accounting and bookkeepers.
• The statement of activities reports revenue and expenses, including expense totals for the functional categories program services, management & general, and fundraising.
• A gift, even if accompanied by a donor-imposed restriction, is nevertheless reported as a contribution.
• When a bookkeeper wants to leap to being an accountant, they will need to take the CPA exam, plus earn a bachelor’s degree (most of the time), if they do not have one already.
• Below is a list of multiple-choice questions and answers on Bookkeeping and Accountancy to help students understand the topic better.
• All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

While accounting can be a lucrative long-term career, most accountants, unlike corporate attorneys or investment bankers, do not command huge salaries during the first few years. If you find it challenging to answer the questions, we recommend visiting our financial accounting section to easily learn the basics of accounting and bookkeeping. If you’re like most modern business owners, odds which of the following is true about bookkeeping? are you didn’t become one so that you could practice professional-level bookkeeping. Outsourcing the work to a seasoned bookkeeper can allow you to focus on your business plan and growth. Business transactions can be recorded by hand in a journal or an Excel spreadsheet. To make things easier, many companies opt to use bookkeeping software to keep track of their financial history.

Common Roles in Bookkeeping

Their job is to advocate and assist taxpayers when they have issues with the Internal Revenue Service. To become one, you have to either have worked at the IRS or pass an EA examination. Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications.