semplr.

Exams · Certifications · Licensing

Bookkeeping Certification — Practice Exam

Principles and concepts: practice questions

Our Bookkeeping bank has 11 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

Start the free mock exam

Question 1

What is the business entity concept?

  1. Assets are recorded at cost
  2. Revenue equals cash
  3. The business never ends
  4. The business's records are kept separate from the owner's personal records
Show the answer

D. The business's records are kept separate from the owner's personal records — Personal expenses shouldn't be in business books.

Question 2

What is the time period assumption?

  1. Businesses report only once
  2. Time doesn't matter in accounting
  3. The life of a business can be divided into periods such as months or years for reporting
  4. All periods must be calendar years
Show the answer

C. The life of a business can be divided into periods such as months or years for reporting — Fiscal years can differ from calendar years.

Question 3

What is materiality?

  1. The number of transactions
  2. Whether an item is large or important enough to affect users' decisions
  3. The physical material of assets
  4. The cost of supplies
Show the answer

B. Whether an item is large or important enough to affect users' decisions — Immaterial items can be handled in simpler ways.

More Bookkeeping topics