BookkeeperReadyQuickBooks® Online job practice

QuickBooks and bookkeeping practice test, with answers

Test yourself on the basics every bookkeeping job uses. Answer all 20 questions, then check your answers: each one is explained, with a link to the lesson that teaches it.

  1. Question 1The bookkeeper's jobWhich of these is part of a bookkeeper's job?
  2. Question 2The accounting equationA café has assets of $40,000 and liabilities of $15,000. What is its equity?
  3. Question 3Debits and creditsWhich accounts go up with a debit?
  4. Question 4Debits and creditsThe café pays $200 for milk from its checking account. Which entry records it?
  5. Question 5Account typesWhich report shows Accounts receivable, the money customers owe?
  6. Question 6Account typesWhich of these is an expense account?
  7. Question 7Customers and vendorsThe café no longer uses a vendor that has past bills in the books. What should you do in QuickBooks Online?
  8. Question 8ContractorsBefore paying an independent contractor for the first time, which form should you ask them for?
  9. Question 9Products and servicesThe café sells bags of coffee beans but doesn't count how many it has. Which item type fits?
  10. Question 10InvoicesUnder accrual accounting, what does saving an invoice for a customer who'll pay later record?
  11. Question 11Sales receipt or invoiceA customer pays $8.50 at the counter for a latte and leaves. What do you record?
  12. Question 12Receiving paymentsYou record a customer's check against their invoice, but it won't be deposited until tomorrow. Where does QuickBooks Online usually hold it?
  13. Question 13BillsThe café gets a $500 bill from its bean supplier, due in 30 days. Which account goes up when you enter the bill?
  14. Question 14Paying billsLater, you pay that $500 bill from checking. What does the payment do?
  15. Question 15The bank feedThe bank feed shows MONTHLY SERVICE FEE $15.00, and nothing in the books matches it. What do you do?
  16. Question 16MatchingThe bank feed shows check #1105, which you already entered when you paid a bill. What do you do?
  17. Question 17ReconciliationWhen you reconcile, a $200 check you wrote hasn't reached the bank yet. What is it called?
  18. Question 18Finding mistakesYour books and the bank differ by $54, which divides evenly by 9. What's a good first guess?
  19. Question 19Cash or accrualUnder cash basis accounting, when does an invoiced sale count as income?
  20. Question 20Owner's drawDana owns the café as a sole proprietor and takes $500 from the business for herself. How is it recorded?

0 of 20 answered. Unanswered questions count as wrong.

Answer key
  1. B. Recording the day's sales and bills accurately Bookkeepers record and organize the day-to-day transactions. Only a licensed CPA can audit financial statements.
  2. C. $25,000 Assets = Liabilities + Equity, so Equity = $40,000 − $15,000 = $25,000.
  3. A. Assets and expenses Debits increase assets, expenses and owner's draws. Credits increase liabilities, equity and income.
  4. B. Debit Cost of goods sold $200, credit Checking $200 The cost goes up (debit) and the money leaves the bank (credit Checking). A credit to Accounts payable would mean the milk was bought on credit, to pay later.
  5. C. The balance sheet Accounts receivable is an asset, and assets are on the balance sheet.
  6. D. Rent Rent is a cost of running the business. Owner's investment is equity, Accounts payable is a liability, and Beverage sales is income.
  7. B. Make the vendor inactive Making a vendor inactive hides it from lists and forms, but its past bills stay in the books. QuickBooks Online doesn't permanently delete names that have transactions.
  8. A. Form W-9 A W-9 gives you the contractor's correct taxpayer ID. W-2s and W-4s are for employees, and a 1099-NEC is something the business may need to file after the year ends, not collect.
  9. C. Non-inventory Non-inventory is for things you sell without tracking how many are in stock. Inventory items track quantities, and services are work you do.
  10. D. Income, and money owed to you in Accounts receivable On the accrual basis, the sale counts when you invoice it: income goes up, and so does Accounts receivable until the customer pays.
  11. B. A sales receipt A sales receipt is for a sale paid on the spot. An invoice is for a customer who'll pay later, and a bill is something the café owes.
  12. A. Undeposited Funds (called Payments to deposit in some companies) Payments wait in Undeposited Funds until you record the bank deposit, so the deposit in the books matches the one on the bank statement.
  13. C. Accounts payable A bill is money the café owes, so Accounts payable goes up, along with the cost the bill is for.
  14. B. Lowers Accounts payable and lowers Checking The cost was recorded when you entered the bill. The payment only clears what you owe and takes the money out of the bank.
  15. A. Categorize it as a bank fee expense and post it It's a real charge the books don't have yet. Exclude is for lines that shouldn't be in the books at all, such as duplicates.
  16. C. Match it to the bill payment you recorded Matching links the bank line to the payment already in the books. Posting it again would count the payment twice.
  17. B. An outstanding check An outstanding check is in your books but hasn't cleared the bank. A deposit in transit is the same idea for money coming in.
  18. A. Two digits were swapped, such as $82 entered as $28 Swapping two digits always creates a difference that divides evenly by 9. It's called a transposition error.
  19. B. When the customer pays Cash basis counts income when money arrives. Accrual basis counts it when you invoice.
  20. C. As an owner's draw, which lowers equity Money a sole proprietor takes for personal use is an owner's draw. It isn't a cost of running the business, so it doesn't go on the profit and loss.

Want to practice the tasks themselves?

Knowing the answer is half of it. The other half is doing the task in the software. Our lessons put you in a QuickBooks Online-style practice company and check each task the moment you finish it. Start the first free lesson, or see the bookkeeper interview questions and answers.