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Debits & Credits

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A check is written to Staples for Supplies. How is this posted?

a)

Debit to Cash, Credit to Supplies

b)

Debit to Supplies, Credit to Cash

c)

Credit to Cash, Credit to Supplies

d)

Debit to Cash, Debit to Supplies

2.

You receive cash for a sale of goods

a)

Credit Cash, Debit Sales

b)

Debit Cash, Credit Sales

c)

Debit Cash, Debit Sales

d)

Credit Cash, Credit Sales

3.

You buy inventory on credit.

a)

Debit Accounts Payable, Debit Purchases

b)

Credit Accounts Payable, Credit Purchases

c)

Debit Accounts Payable, Credit Purchases

d)

Credit Accounts Payable, Debit Purchases

4.

Normal Balance of the Payroll Control Account

a)

$0

b)

Debit

c)

Credit

5.

Normal Balance of Shareholder's Equity.

a)

$0

b)

Debit

c)

Credit

6.

Normal Balance of Payroll Expense

a)

$0

b)

Debit

c)

Credit

7.

Normal Balance of Loans Payable

a)

$0

b)

Debit

c)

Credit

8.

Normal Balance of the Cash Account

a)

$0

b)

Debit

c)

Credit

9.

Normal Balance of Sales Income Account

a)

$0

b)

Debit

c)

Credit

10.

If you have a net PROFIT what is posted to Retained Earnings?

a)

$0

b)

Debit

c)

Credit

11.

If you have a net LOSS what is posted to Retained Earnings?

a)

$0

b)

Debit

c)

Credit

12.

You make an initial investment into a business of $5,000 cash. What accounts are affected?

a)

Credit $5,000 cash

Debit $5,000 equity

b)

Credit $5,000 asset

Debit $5,000 equity

c)

Debit $5,000 cash

Credit $5,000 equity

d)

Debit $5,000 cash

Credit $5,000 sales

13.

Expense accounts...

be careful - this is sort of a trick question!

a)

ALWAYS have a debit balance

b)

USUALLY have a debit balance

c)

ALWAYS have a credit balance

d)

USUALLY have a credit balance

14.

Which one of the following is NOT considered a Payroll Tax?

a)

Social Security

b)

Disability

c)

Medicare

d)

Federal Withholding Tax

e)

State/City Withholding Tax

15.

When the Payroll Journal is posted to the General Ledger, the following takes place.

a)

Debit Payroll Expense, Credit SS/Med/FWT/SWT/CWT/Dis/Payroll Control

b)

Credit Payroll Expense, Debit SS/Med/FWT/SWT/CWT/Dis/Payroll Control

16.

You buy equipment that will be used for several years. You use cash/check to pay, what transaction(s) take place?

a)

Credit Asset

Debit Expense

b)

Debit Asset

Credit Asset

c)

Debit Asset

Credit Expense

d)

Debit Equity

Credit Asset

17.

Which of the following would cause the Accounting Equation to be out of balance?

a)

Debit Asset

Credit Liabilities

b)

Credit Asset

Debit Expense

c)

Debit Asset

Credit Asset

d)

Debit Liability

Debit Equity

18.

What does it mean if you have a CREDIT balance in the Cash Account?

(select the best answer)

a)

You have money left to spend

b)

You have no money left to spend

c)

Your books show that you have overspent and have no cash left to spend

d)

You are going to lose your business

19.

Which transaction(s) could affect more than 2 accounts? Select all that apply

a)

Paying a Credit Card

b)

Buying Stock for Sale

c)

Credit Card Sale

d)

Payroll

20.

Are you ready for some Halloween Candy?

Answer YES for full credit!

a)

Yes

b)

No