Debit and Credit Quiz

When cash is received from a customer, which account is debited?

• Cash

• Accounts Receivable

• Accounts Payable

• Bank Loan

A company pays $2,000 to settle part of its bank loan. Which account is credited?

• Cash

• Accounts Payable

• Bank Loan

• Equity

Assets are increased with a debit entry.

• True

• False

A credit entry increases equity accounts.

• True

• False

A business purchases office equipment worth $5,000 on credit. What is the correct journal entry?

• Debit: Office Equipment, Credit: Accounts Payable

• Debit: Cash, Credit: Office Equipment

• Debit: Accounts Payable, Credit: Office Equipment

• Debit: Office Equipment, Credit: Cash

A business owner invests $10,000 into the company. Which accounts are affected?

• Debit: Cash, Credit: Owner's Equity

• Debit: Owner's Equity, Credit: Cash

• Debit: Bank Loan, Credit: Cash

• Debit: Cash, Credit: Accounts Payable

A company receives $3,000 from a customer to pay off their outstanding balance. What is the journal entry?

• Debit: Cash, Credit: Accounts Receivable

• Debit: Accounts Payable, Credit: Cash

• Debit: Accounts Receivable, Credit: Sales

• Debit: Cash, Credit: Equity

The company buys a building for $100,000 and pays $50,000 in cash, with the rest financed through a loan. What is the correct journal entry?

• Debit: Building $100,000, Credit: Cash $50,000, Credit: Bank Loan $50,000

• Debit: Cash $50,000, Credit: Building $100,000, Credit: Bank Loan $50,000

• Debit: Building $50,000, Credit: Bank Loan $50,000

• Debit: Cash $50,000, Credit: Building $50,000

A business transfer $1,000 from its cash to the bank account. Which account is credited?

• Rent Expense

• Cash

• Accounts Payable

• Revenue

The owner withdraws $2,000 for personal use. What is the correct journal entry?

• Debit: Capital, Credit: Cash

• Debit: Bank, Credit: Cash

• Debit: Cash, Credit: Capital

• Debit: Accounts Payable, Credit: Cash