SS2 Second Term Bookkeeping Past Questions And Answers
Here are 20 Senior Secondary School 2 (SS2) Second Term Bookkeeping Questions with options and answers:
Question: What is the main purpose of a cash book in bookkeeping?
A) Record income and expenses
B) Track accounts payable
C) Monitor long-term investments
D) Organize financial statements
Answer: A) Record income and expenses
Question: In bookkeeping, what is the purpose of a petty cash book?
A) Record large transactions
B) Track daily revenue
C) Monitor small cash expenditures
D) Manage long-term loans
Answer: C) Monitor small cash expenditures
Question: Which financial statement reflects changes in equity over a specific period?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) Retained Earnings Statement
Answer: D) Retained Earnings Statement
Question: What is the purpose of the journal in the accounting process?
A) To prepare financial statements
B) To organize accounts by category
C) To record daily transactions
D) To calculate net income
Answer: C) To record daily transactions
Question: How does a credit entry affect a liability account?
A) Increases the liability
B) Decreases the liability
C) Has no effect on the liability
D) Converts the liability into equity
Answer: A) Increases the liability
Question: What does the term “contra asset” refer to in bookkeeping?
A) An asset with a normal debit balance
B) An asset with a normal credit balance
C) An asset that offsets another asset
D) An asset used for recording expenses
Answer: C) An asset that offsets another asset
Question: Which financial statement provides an overview of a company’s cash position at a specific point in time?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) Retained Earnings Statement
Answer: C) Statement of Cash Flows
Question: What is the purpose of the post-closing trial balance?
A) To identify errors in the ledger
B) To record daily transactions
C) To prepare financial statements
D) To close temporary accounts
Answer: D) To close temporary accounts
Question: Which accounting principle emphasizes recording transactions at their original cost?
A) Matching Principle
B) Historical Cost Principle
C) Conservatism Principle
D) Revenue Recognition Principle
Answer: B) Historical Cost Principle
Question: What is the purpose of the statement of retained earnings?
A) To show the financial position at a specific date
B) To demonstrate changes in equity over time
C) To illustrate the inflows and outflows of cash
D) To explain changes in retained earnings during a specific period
Answer: D) To explain changes in retained earnings during a specific period
Question: Which type of account decreases with a debit entry?
A) Assets
B) Liabilities
C) Equity
D) Revenues
Answer: A) Assets
Question: What is the purpose of adjusting entries in bookkeeping?
A) To record daily transactions
B) To correct errors in the ledger
C) To update accounts for accruals and deferrals
D) To close temporary accounts
Answer: C) To update accounts for accruals and deferrals
Question: Which financial statement reports the financial position at a specific point in time?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) Retained Earnings Statement
Answer: A) Balance Sheet
Question: How does the double-entry system ensure accuracy in bookkeeping?
A) By recording each transaction twice
B) By using a single entry for each transaction
C) By focusing only on cash transactions
D) By avoiding the use of ledgers
Answer: A) By recording each transaction twice
Question: What is the purpose of the closing process in bookkeeping?
A) To prepare financial statements
B) To record daily transactions
C) To adjust accounts for accruals
D) To reset temporary accounts for the next accounting period
Answer: D) To reset temporary accounts for the next accounting period
Question: Which accounting concept suggests that expenses should be matched with the revenues they generate?
A) Going Concern Concept
B) Consistency Concept
C) Materiality Concept
D) Matching Principle
Answer: D) Matching Principle
Question: What is the purpose of the cash budget in bookkeeping?
A) To track daily transactions
B) To monitor long-term investments
C) To plan and control cash inflows and outflows
D) To prepare financial statements
Answer: C) To plan and control cash inflows and outflows
Question: Which accounting principle emphasizes being cautious and avoiding overstating assets or income?
A) Going Concern Concept
B) Consistency Concept
C) Materiality Concept
D) Conservatism Principle
Answer: D) Conservatism Principle
Question: What is the purpose of the trial balance after adjusting entries?
A) To identify errors in the ledger
B) To record daily transactions
C) To prepare financial statements
D) To close temporary accounts
Answer: C) To prepare financial statements
Question: How does the operating cycle relate to bookkeeping?
A) It represents the duration of a financial year
B) It is the time it takes to complete a financial transaction
C) It is used to calculate depreciation
D) It indicates the lifespan of a company
Answer: B) It is the time it takes to complete a financial transaction.
