Preparing Financial Statements

Money out of the bank is always a

• Debit

• Credit

• Profit

• Loss

Money into the bank is always a

• Debit

• Credit

• Expense

• Asset

What is the double entry if we pay for wages from the bank account?

• Dr Bank Cr Wages

• Dr Cash Cr Wages

• Dr Wages Cr Bank

• Dr Wages Cr Cash

What is the double entry if sales are paid directly into the bank?

• Debit Sales Revenue Account, Credit Bank Account
• Debit Accounts Receivable, Credit Sales Revenue Account
• Debit Cash Account, Credit Sales Revenue Account
• Debit Bank Account, Credit Sales Revenue Account

If we pay for stationary out of the bank account, what would the double entry be?

• Debit Bank Account, Credit Bank Account

• Debit Bank Account, Credit Stationary

• Debit Stationary, Credit Bank Account

• Debit Stationary, Credit Cash

If we receive commission income into the bank, what is the double entry?

• Debit Accounts Receivable, Credit Sales Commissions

• Debit Sales Commissions, Credit Bank Account

• Debit Bank Account, Credit Sales Commissions

• Debit Cash Account, Credit Sales Commissions

What is electricity?

• Income

• Expense

• Asset

• Liability

What is a bank loan?

• Income

• Expense

• Asset

• Liability

What is commissions received?

• Income

• Expense

• Asset

• Liability

What is a motor vehicle?

• Income

• Expense

• Asset

• Liability