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ACC I Unit 3

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

In the transaction BOUGHT SUPPLIES ON ACCOUNT FROM DIXON SUPPLY COMPANY, the source document is a/an:

a)

check stub

b)

invoice

c)

memorandum

d)

receipt

2.

The correct journal entry for the transaction RECEIVED CASH FROM OWNER DANA JACKSON AS INVESTMENT is:

a)

debit Cash; credit Dana Jackson, Capital

b)

debit Cash; credit Dana Jackson, Drawing

c)

debit Dana Jackson, Capital; credit Cash

d)

debit Miscellaneous Expense; credit Dana Jackson, Capital

3.

The correct journal entry for the transaction PAID CASH ON ACCOUNT TO AVIS SUPPLY COMPANY is:

a)

debit Cash and credit Owner's Capital

b)

debit Cash and credit Owner's Drawing

c)

debit Accounts Payable/Avis Supply Company and credit Cash

d)

debit Accounts Receivable/Avis Supply Company and credit Cash

4.

Mary is preparing a Balance Sheet. When she completes the Owner's Equity Section, what should the end result represent?

a)

The Total Assets are less than the Owner's Equity

b)

The Total Assets plus Total Liabilities Owner's Equity

c)

The Total Assets should equal Total Liabilities plus Owner's Equity

d)

The Total Assets should equal Total Liabilities minus Owner's Equity

5.

In the transaction RECEIVED CASH FROM OWNER AS AN INVESTMENT, the source document is a/an:

a)

calculator tape

b)

check stub

c)

invoice

d)

receipt

6.

Mariah Smith, Capital and Mariah

Smith, Drawing are both classified as:

a)

owner's equity

b)

expenses

c)

liabilities

d)

revenue

7.

The correct journal entry for the transaction PAID CASH TO MARK JOHNSON, OWNER FOR PERSONAL USE, $900 is:

a)

debit Cash and credit Mark Johnson, Capital

b)

debit Cash and credit Mark Johnson, Drawing

c)

debit Mark Johnson, Capital, and credit Cash

d)

debit Mark Johnson, Drawing, and credit Cash

8.

What is an example of an account

that has a normal debit balance?

a)

Accounts Payable/Ray's Office Equipment

b)

Insurance Expense

c)

Ray Smith, Capital

d)

Sales

9.

What is an example of an account that has a normal credit balance?

a)

Cash

b)

Accounts Payable/Jones Supply

c)

Prepaid Insurance

d)

Supplies

10.

What is the effect on owner's equity when a business receives $2,000 cash from sales?

a)

Owner's equity is decreased by $2,000

b)

Owner's equity is increased by $2,000

c)

Owner's equity is decreased by $4,000

d)

Owner's equity is increased by $4,000

11.

Rent, the telephone bill, and advertising costs are all classified as:

a)

assets

b)

expenses

c)

liabilities

d)

revenue

12.

What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?

a)

Assets are decreased by $1,000

b)

Assets are decreased by $2,000

c)

Assets are increased by $1,000

d)

Assets are increased by $2,000

13.

Sales is classified as:

a)

assets

b)

expenses

c)

liabilities

d)

revenue

14.

The transaction RECEIVED CASH ON ACCOUNT FROM TOM PARKER would result in which journal entry?

a)

debit Accounts Receivable/Tom Parker and credit Cash

b)

debit Cash and credit Accounts Receivable/Tom Parker

c)

debit Cash and debit Accounts Receivable/Tom Parker

d)

debit Tom Parker/Capital and credit Cash

15.

When a liability is decreased by a payment made of $100, the effect on assets is a/an:

a)

no change

b)

decrease of $200

c)

decrease of $100

d)

increase of $100