Accounting Quiz: Debit and Credit Entries

What is the debit entry for an initial investment by the owner?

• Owner's Capital

• Cash

• Accounts Payable

• Assets

When assets are purchased with cash, what is the credit entry?

• Assets

• Cash

• Accounts Receivable

• Owner's Capital

What is the debit entry when assets are bought on account?

• Accounts Payable

• Service Income

• Assets

• Cash

If assets are purchased on credit with notes, what is the credit entry?

• Accounts Receivable

• Cash

• Notes Payable

• Owner's Drawing

What is the debit entry when paying for assets previously bought on account?

• Service Income

• Cash

• Accounts Payable

• Assets

When expenses are paid through cash, what is the credit entry?

• Owner's Capital

• Accounts Payable

• Expenses

• Cash

What is the debit entry when cash is collected for services rendered?

• Expenses

• Accounts Receivable

• Cash

• Service Income

When a customer is billed for services rendered, what is the credit entry?

• Cash

• Service Income

• Accounts Receivable

• Owner's Drawing

What is the debit entry when cash is collected on a previous billing?

• Expenses

• Cash

• Accounts Receivable

• Owner's Capital

What is the credit entry when the owner withdraws cash?

• Owner's Drawing

• Cash

• Service Income

• Assets