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Bookkeeping Quiz

Answers & Explanations - EXPLANATIONS ARE COMING SOON

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