wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

TOPIC_2_Double entry accounting

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

Land & Building is one of Non Current Liabilities.

a)

TRUE

b)

FALSE

2.

Discount received is one of examples of

a)

Expenses

b)

Revenue

3.

A decrease to Accounts Payable is a

a)

debit

b)

credit

4.

A decrease to Accounts Payable is a

a)

debit

b)

credit

5.

Discount received is one of examples of

a)

Expenses

b)

Revenue

6.

A decrease to Accounts Payable is a

a)

debit

b)

credit

7.

An asset account is increased with a _________.

a)

debit

b)

credit

8.

An increase to Utilities Expense is a ____________.

a)

debit

b)

credit

9.

The normal balance for Building is a __________.

a)

debit

b)

credit

10.

An increase to a revenue account is a ____________.

a)

debit

b)

credit

11.

The Right-hand side of a "T" account is called _______.

a)

debit

b)

credit

12.

The accounting equation is defined as _______.

a)

ASSETS + LIABILITIES = CAPITAL

b)

ASSETS - LIABILITIES = CAPITAL

c)

ASSETS = LIABILITIES + CAPITAL

d)

ASSETS = LIABILITIES - CAPITAL

13.

The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?

a)

Debit Bank and Credit Capital

b)

Debit Capital and Credit Bank

c)

Debit Capital and Credit Jack

d)

Debit Jack and Credit Bank

14.

Sold equipment by cash $700. What is the double entry to record this transaction?

a)

Debit Cash and Credit Sales

b)

Debit Cash and Credit Equipment

c)

Debit Equipment and Credit Cash

d)

Debit Sales and Credit Equipment

15.

Sold goods on credit to Mark. What is the double entry to record this transaction?

a)

Debit Cash and Credit Sales

b)

Debit Mark and Credit Sales

c)

Debit Sales and Credit Mark

d)

Debit Cash and Credit Sales

16.

Bought goods worth $4000 on credit from Ben. What is the double entry to record this transaction?

a)

Debit Purchases and Credit Cash

b)

Debit Cash and Credit Purchases

c)

Debit Ben and Credit Purchases

d)

Debit Purchases and Credit Ben

17.

A business is started with the injection of 10,000 in cash. In which account is the credit entry made?

a)

Cash

b)

Capital

18.

A business purchases equipment cash. In which account is the debit entry made?

a)

Equipment

b)

Supplies

19.

A business owner withdraws cash of 1,000 from the business. In which account is the debit entry made?

a)

Drawings Account

b)

Cash

20.

A supplier is paid 500 by cheque, is the cash account debited or credited?

a)

Credited

b)

Debited

21.

A customer paid a loan of $400 using a direct transfer from the bank, do you debit or credit the loan account?

a)

Debit

b)

Credit

22.

Is a bank loan an asset or a liability?

a)

Asset

b)

Liability

23.

A business is started with 5,000 cash from the owner paid into the bank account. Which account is credited?

a)

Cash

b)

Capital

24.

A __________ amount will appear on the left side of a T-account.

a)

Debit

b)

Credit

25.

Equipment is sold for cash?

a)

Assets increase and decrease

b)

Assets and liabilities increase

26.

Goods are purchased on credit terms?

a)

Assets decrease

b)

Liabilities increase

27.

Current liabilities are amount owed by business that are to be paid within

a)

1 month

b)

6 months

c)

1 year

d)

5 year

28.

Mortgage on Premises is one of the

a)

Revenue

b)

Expenses

c)

Current Assets

d)

Non Current Liabilities

29.

An example of Non Current Assets is

a)

Discount allowed

b)

Fixtures & Fittings

c)

Cash at bank

d)

Inventory

30.

Gain on disposal of Non Current Asset is one of

a)

Revenue

b)

Expenses

c)

Current Assets

d)

Current Liabilities

31.

Creditor is one of

a)

Revenue

b)

Expenses

c)

Current Assets

d)

Current Liabilities

32.

Rental is one of

a)

Revenue

b)

Expenses

c)

Current Assets

d)

Current Liabilities

33.

Cash in hand is one of the

a)

Non Current Asset

b)

Current Asset

34.

To record the INCREASE of Owner's Equity, the account must be CREDITED.

a)

TRUE

b)

FALSE

35.

Bank Overdraft is one of the examples of

a)

Current Asset

b)

Current Liability

36.

To increase the value of an assets, the account must be DEBITED.

a)

TRUE

b)

FALSE

37.

All EXPENSES will decrease in CREDIT side of the account.

a)

TRUE

b)

FALSE

38.

Which account below is not a subdivision of owner’s equity?

a)

Owner’s Drawings

b)

Revenues

c)

Expenses

d)

Liabilities

39.

The owner’s drawings account

a)

appears on the income statement along with the expenses of the business.

b)

must show transactions every accounting period.

c)

is increased with debits and decreased with credits.

d)

is not a proper subdivision of owner’s equity.

40.

Which of the following statements is not true?

a)

Expenses increase owner’s equity.

b)

Expenses have normal debit balances.

c)

Expenses decrease owner’s equity.

d)

Expenses are a negative factor in the computation of net income.

41.

Nabila transferred her private motor vehicle, $8000, to the business.

State accounts to be debited and credited

a)

Dr Motor vehicle Cr Bank

b)

Dr Motor vehicle Cr Capital

c)

Dr Motor vehicle Cr Nabila

d)

Dr Motor vehicle Cr Drawings

42.

1. A furniture retailer buys tables for cash for use in the main office of the business. Which entry would record this correctly in the accounts?

Account to be debited - Account to be credited

(a) Purchases - Cash

(b) Cash - Purchases

(c) Office furniture- Cash

(d) Cash - Office furniture

a)

(a)

b)

(b)

c)

(c)

d)

(d)

43.

Asset accounts normally have _____________ balances.

a)

Debit

b)

Credit

44.

The owner’s equity account increases on the ______________ side.

a)

Debit

b)

Credit

45.

Withdrawal account is a ______________ account.

a)

Debit

b)

Credit

46.

A decrease in the liability is recorded as ______________.

a)

Debit

b)

Credit

47.

In a double entry system, a credit is used to record

a)

an increase in liability, revenue and capital and a decrease in asset and expenses

b)

a decrease in liability and capital and increase in expenses

c)

a decrease in revenue and increase in assets

d)

an increase in assets and expenses and a decrease in liability, revenue and capital

48.

A debit entry in Account Receivable is to record

a)

payment of debt by the business

b)

purchase on credit

c)

sales on credit

d)

sales return

49.

Repayment of bank loan will

a)

increase an asset and decrease another asset

b)

decrease an asset and decrease owner's equity

c)

decrease an asset and decrease a liability

d)

decrease an asset and increase a liability

50.

The effects of purchasing a delivery van on credit are

a)

assets increase and liabilities decrease by the same amount

b)

capital and liabilities increase by the same amount

c)

assets and liabilities increase by the same amount

d)

assets, liabilities and capital increase by the same amount