Journal Entries and Financial Accounting Quiz

What is the main principle of double-entry bookkeeping?

• Entries are optional for small transactions.

• Every entry requires a corresponding and opposite entry to a different account.

• Every entry must be recorded in a single account.

• Entries are only made for cash transactions.

What must a journal entry include?

• Only one account with a CREDIT amount.

• At least 3 accounts with 2 DEBIT amounts.

• At least 2 accounts with 1 DEBIT and 1 CREDIT amount.

• Only one account with a DEBIT amount.

In a journal entry, which is listed first?

• DEBITS

• CREDITS

• Assets

• Liabilities

What happens when the owner invests cash in the corporation?

• Both Cash and Common Stock are credited.

• Cash is debited and Common Stock is credited.

• Both Cash and Common Stock are debited.

• Cash is credited and Common Stock is debited.

How is the purchase of equipment with cash recorded?

• Both Equipment and Cash are credited.

• Equipment is debited and Cash is credited.

• Equipment is credited and Cash is debited.

• Both Equipment and Cash are debited.

What is the journal entry for purchasing supplies on account?

• Both Supplies and Accounts Payable are credited.

• Both Supplies and Accounts Payable are debited.

• Supplies is credited and Accounts Payable is debited.

• Supplies is debited and Accounts Payable is credited.

How is paying for supplies previously purchased recorded?

• Both Accounts Payable and Cash are credited.

• Accounts Payable is debited and Cash is credited.

• Accounts Payable is credited and Cash is debited.

• Both Accounts Payable and Cash are debited.

What is the journal entry for paying rent in advance?

• Prepaid Rent is debited and Cash is credited.

• Prepaid Rent is credited and Cash is debited.

• Both Prepaid Rent and Cash are debited.

• Both Prepaid Rent and Cash are credited.

How is performing work for customers and receiving cash recorded?

• Both Cash and Services Revenue are credited.

• Cash is debited and Services Revenue is credited.

• Cash is credited and Services Revenue is debited.

• Both Cash and Services Revenue are debited.

What is the journal entry for performing work and billing customers?

• Accounts Receivable is debited and Services Revenue is credited.

• Accounts Receivable is credited and Services Revenue is debited.

• Both Accounts Receivable and Services Revenue are debited.

• Both Accounts Receivable and Services Revenue are credited.