Journal Entry Quiz

Which of the following is true about a journal entry?

• It is prepared at the end of the year

• It records a financial transaction chronologically

• It is used to prepare financial statements directly

• It only records credit transactions

When cash is received from a customer for a previous credit sale, the journal entry would be:

• Debit Accounts Receivable, Credit Cash

• Debit Cash, Credit Accounts Receivable

• Debit Sales, Credit Cash

• Debit Cash, Credit Sales

In a journal entry, what is the normal sequence of recording the transactions?

• First the credit entry, then the debit entry

• Debit and credit entries in alphabetical order

• Debit entry first, followed by the credit entry

• Debit and credit entries in random order

The term "double-entry" in accounting refers to:

• Recording both sales and purchases

• Making two entries for every transaction, one debit and one credit

• Writing transactions twice in the ledger

• Recording both cash and non-cash transactions

Which of the following would result in a credit to the Cash account?

• Purchase of equipment for cash

• Collection from debtors

• Taking a loan from a bank

• Sale of inventory on credit

Which account would be debited when office supplies are purchased for cash?

• Cash

• Office Supplies

• Accounts Payable

• Office Equipment

In which book is the journal entry first recorded before posting to the ledger?

• General Ledger

• Trial Balance

• Cash Book

• General Journal

A business paid rent of $500 in cash. The journal entry will be:

• Debit Rent Expense, Credit Accounts Payable

• Debit Rent Expense, Credit Cash

• Debit Cash, Credit Rent Expense

• Debit Accounts Payable, Credit Rent Expense

When goods are purchased on credit, the journal entry would be:

• Debit Purchases, Credit Cash

• Debit Purchases, Credit Accounts Payable

• Debit Accounts Payable, Credit Purchases

• Debit Cash, Credit Purchases

Which of the following transactions would require a compound journal entry?

• Purchase of goods on credit

• Sale of goods for cash

• Purchase of equipment by paying part cash and part on credit

• Payment of utility bills