Accounting Basics Review Game

If a company has assets worth 150,000 and liabilities worth 90,000, what is the owner's equity according to the accounting equation?

• $60,000

• $240,000

• $150,000

• $90,000

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DOK Level 2: Skill/Concept

When recording a transaction in a journal, which of the following is true about debits and credits?

• Debits must always equal credits

• Credits must exceed debits

• Debits are always money out, and credits are always money in

• Credits should never equal debits

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DOK Level 2: Skill/Concept

A business purchases office supplies for $500 on credit. How should this transaction be recorded in the journal?

• Debit Office Supplies 500 - Credit Cash 500

• Debit Cash 500 - Credit Office Supplies 500

• Debit Office Supplies 500 - Credit Accounts Payable 500

• Debit Accounts Receivable 500 - Credit Office Supplies 500

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DOK Level 2: Skill/Concept

What is the effect on the accounting equation if a business incurs an expense paid in cash?

• Assets increase; Liabilities decrease

• Assets decrease; Owner's Equity decreases

• Assets decrease; Liabilities increase

• Liabilities decrease; Owner's Equity increases

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DOK Level 2: Skill/Concept

A company earns $1,000 in service revenue on account. How should this be recorded in the journal?

• Debit Cash 1,000 - Credit Service Revenue 1,000

• Debit Accounts Receivable 1,000 - Credit Service Revenue 1,000

• Debit Service Revenue 1,000 - Credit Cash 1,000

• Debit Service Revenue 1,000 - Credit Accounts Receivable 1,000

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DOK Level 2: Skill/Concept

If a business owner invests an additional $10,000 cash into the business, how should this transaction be recorded?

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DOK Level 2: Skill/Concept

A company pays off $2,000 of its accounts payable. What is the journal entry for this transaction?

• Debit Accounts Payable 2,000 - Credit Cash 2,000

• Debit Cash 2,000 - Credit Accounts Payable 2,000

• Debit Accounts Receivable 2,000 - Credit Cash 2,000

• Debit Cash 2,000 - Credit Accounts Receivable 2,000

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DOK Level 2: Skill/Concept

A business buys a new computer for $1,200 on credit. How should this transaction affect the accounts?

• Debit Equipment 1,200 - Credit Accounts Payable 1,200

• Debit Accounts Payable 1,200 - Credit Equipment 1,200

• Debit Cash 1,200 - Credit Equipment 1,200

• Debit Equipment 1,200 - Credit Cash 1,200

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DOK Level 2: Skill/Concept

If a business pays a $300 utility bill, how should this transaction be recorded in the journal?

• Debit Utilities Expense 300 - Credit Cash 300

• Debit Cash 300 - Credit Utilities Expense 300

• Debit Accounts Payable 300 - Credit Utilities Expense 300

• Debit Utilities Expense 300 - Credit Accounts Receivable

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DOK Level 2: Skill/Concept

A company sells products for $2,000 cash. What is the correct journal entry for this transaction?

• Debit Cash 2,000 - Credit Sales 2,000

• Debit Sales 2,000 - Credit Cash 2,000

• Debit Accounts Receivable 2,000 - Credit Sales

• Debit Sales Revenue 2,000 - Accounts Receivable 2,000

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DOK Level 2: Skill/Concept