UNIMAP CYBERJAYA Q2

Journal entry for salary paid to the employees.

• Dr Salary, Cr Bank

• Dr Salary, Cr Employee

• Dr Salary, Cr Account Payable

• Dr Salary, Cr Liability

What type of account for "mortgage on premises", and how is it affected

• Asset: debited when it increases

• Liability: debited when it increases

• Liability: Credited when it increases

• Expenses: debited when it increases

Credit is to record decrease in __________.

• liabilities

• assets

• revenue

• capital

The format of a double entry account is similar to the letter ___ and is often called a ___ account.

• L

• S

• Y

• T

The double entry accounting system is:

• An accounting system that is useful for small business.

• An accounting system involving all the interested parties of accounting information.

• An accounting system in which transaction are recorded from a single aspect

• An accounting system in which business transactions are recorded from dual aspects.

In a journal entry, which side does a debit entry typically affect

• Increases assets and decreases expenses

• Increases assets and expenses

• Decreases expenses and increases liabilities 

• Decreases assets and increases liabilities

If a company purchases equipment for cash, the correct journal entry will:

• Debit cash and credit accounts payable 

• Debit equipment and credit accounts payable

• debit equipment and Credit cash 

• Debit cash and credit equipment

Which of the following transactions will require a credit entry to the accounts payable account

• Purchasing inventory on credit

• Purchasing equipment with cash

• Paying accounts payable

• Paying for utilities in cash

If a business receives cash from a customer for a previous credit sale, what is the correct journal entry?

• Debit cash, credit accounts receivable

• Debit accounts receivable, credit cash

• Credit cash, debit sales revenue 

• debit accounts receivable and Credit cash

Which account is credited when a company makes a payment on its interest on loan

• Interest Payable

• Accounts Receivable 

• Cash/Bank

• Interest Expense