Debit and Credit Entry

1. Which rule shows an increase in asset?

• Credit

• Debit

• Trial balance

• Posting

2. Mr. Lee invested cash P50,000, tools P10,000 and machines worth P60,000 for his auto shop business. What is the credit entry?

• Cash P50,000

• Tools P10,000

• Lee, capital P120,000

• machines P60,000

3. Which rule refers to increase in liability?

• Credit

• Accounts payable

• Equity

• Debit

4. Paid the rent space P10,000. What is the debit entry?

• Cash P10,000

• Prepaid rent P10,000

• Rent expense P10,000

5. Completed repair work for Mr. Andy on credit worth P5,000. What is the debit title?

• Cash

• Service income

• Accounts payable

• Accounts receivable

6. Which of the following is the book of final entry?

• General journal

• General ledger

• Trial balance

• Posting

7. ________ refers to what has been received from the transaction.

• Credit

• Balance

• Debit

• Asset

8. What account number pertains to Equity?

• 300

• 200

• 400

• 500

9. What is use to summarize the increases & decreases in the asset, liability, & proprietorship?

• Chart of Account

• Trial balance

• Equation

• Account

10. Paid the account due to XYZ Supplier worth P10,000. What is the debit title?

• Supply expense P10,000

• Cash P10,000

• Accounts payable P10,000

• Account receivable