JAMB Bookkeeping Past Questions and Answers

 

Bookkeeping questions:

 

Question: What is the primary purpose of bookkeeping?

 

A. Generate financial statements

B. Record financial transactions

C. Conduct financial analysis

D. Prepare tax returns

Answer: B. Record financial transactions

 

Question: What is the accounting term for the initial record of a financial transaction?

 

A. Journal entry

B. Ledger

C. Trial balance

D. Financial statement

Answer: A. Journal entry

 

Question: In double-entry bookkeeping, what happens to the accounting equation with each transaction?

 

A. It remains unchanged

B. It decreases

C. It increases

D. It becomes irrelevant

Answer: A. It remains unchanged

 

Question: What is the purpose of the general ledger in bookkeeping?

 

A. Record daily transactions

B. Summarize financial statements

C. Identify errors in the trial balance

D. Record long-term investments

Answer: A. Record daily transactions

 

Question: In the context of bookkeeping, what does the term “accounts payable” represent?

 

A. Money owed to the business by customers

B. Money the business owes to suppliers and creditors

C. The owner’s equity in the business

D. Revenue generated from sales

Answer: B. Money the business owes to suppliers and creditors

 

Question: What is the purpose of the cash book in bookkeeping?

 

A. Record all financial transactions

B. Monitor changes in equity

C. Track cash inflows and outflows

D. Prepare financial statements

Answer: C. Track cash inflows and outflows

 

Question: What is the accounting term for the process of transferring information from the journal to the ledger?

 

A. Posting

B. Balancing

C. Adjusting

D. Reconciling

Answer: A. Posting

 

Question: In bookkeeping, what is the purpose of a trial balance?

 

A. Summarize financial transactions

B. Identify errors in the ledger

C. Record adjusting entries

D. Prepare financial statements

Answer: B. Identify errors in the ledger

 

Question: What is the term for a financial statement that shows a company’s revenues and expenses over a specific period?

 

A. Balance sheet

B. Cash flow statement

C. Income statement

D. Retained earnings statement

Answer: C. Income statement

 

Question: What is the accounting term for a list of all accounts used by a company?

 

A. Ledger

B. Chart of accounts

C. Journal

D. Trial balance

Answer: B. Chart of accounts

 

Question: In double-entry bookkeeping, what is the opposite entry when recording a credit transaction?

 

A. Credit

B. Debit

C. Offset

D. Neutral

Answer: B. Debit

 

Question: What is the purpose of the petty cash book in bookkeeping?

 

A. Record significant financial transactions

B. Track small cash expenditures

C. Prepare financial statements

D. Monitor changes in equity

Answer: B. Track small cash expenditures

 

Question: In bookkeeping, what does the term “accounts receivable” represent?

 

A. Money the business owes to suppliers and creditors

B. Money paid by customers for goods or services

C. Revenue generated from sales

D. The owner’s equity in the business

Answer: B. Money paid by customers for goods or services

 

Question: What is the term for the process of reconciling the bank statement with the company’s records?

 

A. Posting

B. Balancing

C. Adjusting

D. Bank reconciliation

Answer: D. Bank reconciliation

 

Question: In bookkeeping, what is the purpose of the general journal?

 

A. Record all financial transactions

B. Monitor changes in equity

C. Summarize financial statements

D. Track cash inflows and outflows

Answer: A. Record all financial transactions

 

Question: What is the accounting term for the difference between total revenue and total expenses?

 

A. Net income

B. Gross profit

C. Operating income

D. Net loss

Answer: A. Net income

 

Question: In bookkeeping, what does the term “contra account” refer to?

 

A. An account that offsets another account

B. A primary account

C. A subsidiary account

D. An account with a zero balance

Answer: A. An account that offsets another account

 

Question: What is the term for an accounting entry that increases an asset or expense account and decreases a liability or equity account?

 

A. Debit

B. Credit

C. Posting

D. Ledger

Answer: A. Debit

 

Question: In bookkeeping, what is the purpose of the cash flow statement?

 

A. Summarize financial transactions

B. Record changes in equity

C. Analyze changes in cash position

D. Prepare financial statements

Answer: C. Analyze changes in cash position

 

Question: What is the accounting term for an entry made to correct an error in a previous transaction?

 

A. Adjusting entry

B. Reversing entry

C. Correcting entry

D. Offset entry

Answer: C. Correcting entry.