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WorksheetsIdentifying and recording business transactions
Total questions: 15
Worksheet time: 9mins
Transactions are recorded in the journal
Chronologically
Alphabetically
Numerically
Chromatically
An entry that debits Prepaid Expense and credit Cash for advance payment to a supplier is recorded using the (a) method.
When a business issues an invoice, it will
debit Accounts Payable.
debit Accounts Receivable.
credit Cash.
debit Sales.
Mr. Tan, the owner of XYZ Enterprise, collected the receivable of business from a customer and deposited the amount collected to his personal account. To record this transaction, XYZ's accountant will
debit Cash and credit Tan, Capital
debit Tan, withdrawal and credit Accounts Receivable
debit Tan, Withdrawal and credit Cash
ignore this transaction.
Mr. Chua, the owner of HIJ Enterprise, collected the receivable of business from a customer and deposited the amount collected to the business bank account. To record this transaction, HIJ's accountant will
ignore this transaction
debit Cash and credit Accounts Receivable
debit Tan, withdrawal and credit Accounts Receivable
debit Cash and credit Tan, Capital
Which among the following is an operating activity of the business?
The owner paid for the electricity of his personal house.
The business paid for the repairs of the the cracks in the building wall.
The business sold three (3) service vehicle.
Obtained P50,000 cash from a lending organization.
Statement 1: When an entity uses a special journal, entries made in the special journal will also need to be recorded in the general journal.
Statement 2: Special journal will be used to recorded recurring transactions.
Both statements are correct.
Both statements are incorrect.
Only Statement 1 is incorrect.
Only Statement 2 is incorrect.
Which among the following may reduce Accounts Receivable when issued by the entity? (Choose all those that apply.)
Official receipt
Debit memorandum
Credit memorandum
Sales invoice
Statement 1: When an entity was issued an official receipt, it means that the entity will create an entry with a credit Cash.
Statement 2: The entry to record a transaction when the entity issues an official receipt will always have a credit to Sales or Service Revenue
Both statements are correct.
Both statements are incorrect.
Only Statement 1 is correct.
Only Statement 2 is correct.
When an entity purchased fixed asset in cash, it will
Debit the Fixed Asset Account and Credit Cash
Debit Cash and Credit the Fixed Asset Account
Debit the Fixed Asset Account and Credit Accounts Payable
Debit Accounts Payable and Credit the Fixed Asset Account
Which of the following is not one of the important parts of a journal entry?
Transaction date
Account titles and amounts to be debited and credited
Short description of the transaction
A detailed description of the reason why management entered into the transaction
The accountant recorded a transaction as a debit to Cash and a credit to Accounts Receivable. The transaction was a
Sale on account.
Sale on cash basis.
Collection of accounts payable.
Collection of accounts receivable.
A sale on account increases (Check all those that apply.)
Accounts Receivable
Sales
CAsh
Inventory
Which among the following accounts decrease when a business settles its debts to suppliers? (Choose all those that apply.)
Cash
Accounts Payable
Accounts Receivable
Owner's capital
Which of the following transactions increases total assets?
Purchase of inventory through cash
Collection of accounts receivable
Payment of accounts payable
Infusion of capital by the owner
