KT Session Recap

In a T-account, where is a debit recorded?

• On the top

• On the right side

• On the left side

• In the middle

In a T-account, where is a credit recorded?

• On the top

• On the right side

• In the middle

• On the left side

What does a debit entry typically increase?

• Liabilities

• Revenue

• Assets

• Equity

Which of the following accounts would typically have a debit balance?

• Notes Payable

• Cash

• Accounts Payable

• Common Stock

If you buy a machine for cash, which account is credited?

• Machine

• Cash

• Expense

• Loan

Which of these is an asset?

• Bank Loan

• Rent

• Furniture

• Revenue

What does the accounting equation say?

• Assets = Expenses – Liabilities

• Assets = Liabilities + Equit

• Income = Cash + Assets

• Equity = Revenue – Liabilities

Which of the following transactions would require a manual journal voucher instead of being system-generated?

• Recording a supplier invoice

• Adjusting prepaid rent at month-end

• Processing a sales order

• Issuing a payment to vendor

A company purchased equipment worth 500,000, paying 200,000 in cash and taking a loan for the rest. What is the correct set of journal entries?

• Dr Equipment 500,000; Cr Cash 500,000

• Dr Cash 500,000; Cr Equipment 200,000, Cr Loan 300,000

• Dr Equipment 500,000; Cr Cash 200,000; Cr Loan Payable 300,000

• Dr Equipment 200,000; Cr Loan 500,000

A company records the following journal entry at the end of the month:

Dr Salaries Expense 120,000
Cr Salaries Payable 120,000

What is the purpose of this entry?

• To show that salary was paid in cash

• To fix a mistake from last month

• To show that salary is due but not yet paid

• To record salary for next month