Skip to content

Home
Take Me Back
Take Me Back

Transaction – Practice Exam – Canadian

By Beth McTeer / August 30, 2022

CDB – Canadian Version Transactions – Canadian Transaction – Practice Exam – Canadian

This practice exam can be taken as many times as needed to feel confident and prepared for the Transactions Exam.

Time limit: 0

Exam Summary

0 of 10 Questions completed

Questions:

Information

You have already completed the exam before. Hence you can not start it again.

Exam is loading…

You must sign in or sign up to start the exam.

You must first complete the following:

Results

Exam complete. Results are being recorded.

Results

0 of 10 Questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 point(s), (0)

Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)

Categories

Not categorized 0%

1
2
3
4
5
6
7
8
9
10

Current
Review
Answered
Correct
Incorrect

Question 1 of 10

1. Question
You noticed that your new client has a negative balance due from Customer T. What could be causing this negative balance?
- Your client purchased goods from Customer T on account
- Customer T overpaid an invoice.
- Customer T never received goods from your client.
- Customer T underpaid an invoice
Correct

Incorrect
Question 2 of 10

2. Question
Your client buys 3 months of insurance for $330. What entries do you need to make?
- Credit Insurance Expense for $110, credit Prepaid Insurance for $220, and debit Cash for $330
- Debit Insurance Expense for $330 and credit Cash for $330
- Debit Insurance Expense for $100, debit Prepaid Insurance for $330, and credit Cash for $330
- Debit Insurance Expense for $110, debit Prepaid Insurance for $220, and credit Cash for $330
Correct

Incorrect
Question 3 of 10

3. Question
Your client paid $2,500 in franchise fees at the beginning of their agreement. How do you record this transaction?
- Debit an asset account called Prepaid Fees for $2500 and credit Cash.
- Debit an expense account called Franchise fees for $2500 and credit Cash.
- Debit an asset account called Franchise Fees for $2500 and credit Cash.
- Debit Cash and credit an asset account called Franchise fees for $2500.
Correct

Incorrect
Question 4 of 10

4. Question
Your client is showing duplicate expenses for rent each month. What might be causing this issue?
- The bills are getting entered twice into the accounting software.
- The bills are being paid through the accounting software and being matched in the bank feed.
- The client is paying the utility bill twice.
- The client is paying for another tenant's rent.
Correct

Incorrect
Question 5 of 10

5. Question
Your client paid April’s sales tax on June 5th. How do you record this transaction?
- Debit Sales Tax Expense and credit Sales Tax Liability
- Debit Sales Tax Liability and credit Sales Tax Expense
- Debit Sales Tax Liability and credit the bank account
- Debit Sales Tax Expense and credit the bank account
Correct

Incorrect
Question 6 of 10

6. Question
Your landscaping client has a three year loan on the company mower. What entries do you make each month?
- Each payment will be a debit to Loan payable, debit Interest Expense, and a credit to Cash
- Each payment will be a debit to Loan payable and a credit to Cash
- Each payment will be a credit to Loan payable and a debit to Cash
- Each payment will be a credit to Loan payable, credit to Cash, and debit to Interest Expense
Correct

Incorrect
Question 7 of 10

7. Question
Your client is a partnership. Their Balance Sheet is showing $11,000 at year-end in Retained Earnings. What do you do?
- Create a journal entry to move the Retained Earnings to each owners' contribution account according to their partnership percentages
- Create a journal entry to move the Retained Earnings to Owners Equity
- Nothing; partnerships should have a Retained Earnings balance
- Create a journal entry to move the Retained Earnings to each owners' contribution account
Correct

Incorrect
Question 8 of 10

8. Question
Your new client says the revenue on his income statement is more than his records show. What could be causing this difference?
- The bank balance could be overstating your client's income due to some transactions not being posted to the account until the following month.
- An owner's contribution was not recorded properly.
- Your client could have paid for expenses with personal funds that you were not informed of.
- An owner's draw was not recorded properly.
Correct

Incorrect
Question 9 of 10

9. Question
Your client has paid interest on a loan for the business vehicle. Where can you find those transactions?
- In the bill of sale of the business truck
- In the retained earnings account frorm previous year's payments
- In the notes payable transaction reports
- In the transactions report for the interest expense account
Correct

Incorrect
Question 10 of 10

10. Question
Your client gave away his office water cooler with a book value of $350. How do you record this transaction?
- Debit Accumulated Depreciation, debit the Loss, and credit the Fixed Asset
- Debit Accumulated Depreciation, credit the Loss, and credit the Fixed Asset
- Debit the Fixed Asset, credit Loss, and credit the Accumulated Depreciation
- Debit Cash, debit Accumulated Depreciation, debit Loss, and credit the Fixed Asset
Correct

Incorrect

© Copyright 2024 Digital Bookkeeper Association

Ethics
About
Contact Us

Privacy Policy
Terms & Conditions