SS3 Second Term Bookkeeping Past Questions And Answers

Here are 20 Strategic Stage 3 (SS3) Bookkeeping questions with options and answers:

 

Question 21:

What is the purpose of the “Cash Basis” accounting method?

 

a) Record transactions when they occur

b) Record transactions when cash is received or paid

c) Only record cash transactions

d) Ignore non-cash transactions

 

Answer:

b) Record transactions when cash is received or paid

 

Question 22:

Which financial statement helps analyze a company’s cash inflows and outflows over a specific period?

 

a) Balance Sheet

b) Income Statement

c) Cash Flow Statement

d) Statement of Retained Earnings

 

Answer:

c) Cash Flow Statement

 

Question 23:

What is the formula for calculating Return on Assets (ROA)?

 

a) Net Income / Total Assets

b) Net Income / Average Total Assets

c) Total Assets / Net Income

d) Average Total Assets / Net Income

 

Answer:

b) Net Income / Average Total Assets

 

Question 24:

Which term represents money owed by a business to its suppliers?

 

a) Accounts Payable

b) Accounts Receivable

c) Prepaid Expenses

d) Accrued Liabilities

 

Answer:

a) Accounts Payable

 

Question 25:

What is the purpose of the “Income Summary” account in the closing process?

 

a) Record day-to-day transactions

b) Transfer net income or loss to the owner’s equity

c) Calculate profit margins

d) Prepare financial statements

 

Answer:

b) Transfer net income or loss to the owner’s equity

 

Question 26:

Which financial statement shows the changes in equity over a specific period?

 

a) Balance Sheet

b) Income Statement

c) Statement of Cash Flows

d) Statement of Retained Earnings

 

Answer:

d) Statement of Retained Earnings

 

Question 27:

What is the purpose of the “Aging of Accounts Receivable” report?

 

a) Calculate depreciation

b) Assess liquidity of accounts

c) Analyze creditworthiness of customers

d) Record bad debts

 

Answer:

c) Analyze creditworthiness of customers

 

Question 28:

Which term describes the systematic allocation of the cost of an intangible asset over its useful life?

 

a) Amortization

b) Depreciation

c) Imp

airment

d) Appreciation

 

Answer:

a) Amortization