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Print PageBookkeeping Quiz for Entrepreneurs
1. For the IRS, you must record all of the information below, except:A. When the payment was madeB. What was the check number C. Who was it made to D. What was the business purpose |
2. The disadvantage of hand-written bookkeeping records is:A. They are not reliable for taxesB. They cannot be "backed up" C. They do not look professional D. The IRS does not accept them at an audit |
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3. To deduct $50 worth of office supplies if you lost your receipt:A. Must have a duplicate receipt issuedB. Must have a credible witness C. Cannot deduct it no matter what D. None of the above |
4. Under the cash method of accounting, an online bill is considered paid:A. When your VISA card data is entered onlineB. When the credit card is actually charged C. When credit card statement is received D. When credit card statement is paid |
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5. You bought a fax machine online for $150 and paid by MasterCard. $150 is deductible:A. On the date of purchaseB. When machine is delivered C. When machine is connected D. When your MasterCard bill is paid |
6. In your small business, the tax-deductible cost of your own labor is:A. Based on what you actually pay yourselfB. Based on industry average C. Based on "fair market value" D. Not deductible at all |
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7. Depreciation is:A. An accounting gimmickB. A "freebie" deduction for businesses C. A technique to reduce capital gains tax D. A common torture in the Middle Ages |
8. Receipt or other proof is required:A. For entertainment & travel expensesB. Only for expenses paid in cash C. Only for major (over $500) expenses D. For all business expenses |
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9. Balance sheet represents:A. What is wrong with our societyB. Profitability of the business C. Liquidation value of the business D. Creativity of your accountant |
10. "Double-entry" accounting is:A. An optional method of accountingB. An IRS requirement for businesses C. Computer software for accountants D. Cheating method invented by Enron |
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