Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

You are already subscribed. This offer is not available to existing subscribers.
Step 2: Please check your email and click the confirmation link.


Chart of Accounts (Practice Quiz)

For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions press or click on the blank space provided.

If you have difficulty answering the following questions, learn more about this topic by reading our Chart of Accounts (Explanation).

  1. 1.

    The chart of accounts is a listing of the accounts presently having balances in the general ledger.

    The list will include accounts that are available for amounts. Some accounts appear on the chart of accounts even if the accounts have had no amounts recorded in them.
    You selected the correct answer. Some accounts listed in the chart of accounts will NOT have amounts recorded in them, especially if it is early in the accounting year.
  2. 2.

    Some accounting software will classify some accounts as "income" accounts, while accountants might refer to these accounts as "revenue" accounts.

    Many people use the term income when referring to sales, service fees earned, contributions received, etc. Many accountants prefer the term revenues when describing sales, service fees earned, etc. (Some accountants would like to save the word income to describe the 'net' of revenues minus expenses. Others would use it for non-operating revenues. Obviously, they haven't convinced the rest of the world and the best selling accounting software uses the term income instead of revenue.)
    The largest selling accounting software uses the term income instead of revenue. While some accountants may prefer one term instead of another, you should be aware that many people use the terms interchangeably.
  3. 3.

    The digits of the account numbers assigned to general ledger accounts often have significance. For example, an account number beginning with a "1" might signify that the account is an asset account, a "6" might signify an operating expense, etc.

    Generally, the larger and more sophisticated the company, the more digits in the account numbers. For sorting the accounts into meaningful reports the various digits do signify a specific category.
  4. 4. The accounts shown in the chart of accounts can be broadly classified into two categories: balance sheet accounts and
    income statement
  5. 5.

    Every transaction will affect how many accounts?

    Only One
    Accounting uses 'double-entry.' This means at least two accounts are involved in every transaction.
    Only Two
    Not the best answer.
    While many transactions involve only two accounts, many transactions involve more than two accounts. Two accounts is the minimum number.
    Two Or More
    Two is the minimum number of accounts required to record a transaction; however, many transactions involve more than two accounts.
  6. 6. In addition to the standard chart of accounts for a specific industry, you will likely want to expand and/or modify the chart of accounts to fit your business. One tool that would be helpful in determining the accounts for your company would be your company's

Want more practice questions?
Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO.

Certificate of Achievement

Certificates of Achievement

We now offer four Certificates of Achievement for Introductory Accounting and Bookkeeping. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, and Working Capital and Liquidity. Click here to learn more.

PRO Testimonial
"AccountingCoach PRO is an exceptional service. It not only provides all the essential material to succeed in learning accounting and finance, but also explains all the relevant details that make the difference when you need to understand the complexity of accounting systems. As a communication trainer and business coach, I had to pick up the language of accounting in no time in order to communicate more effectively with my clients. This website's benefits have exceeded my expectations. Many thanks for your great support." - Theirry F.