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Debit and Credit Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

When cash is received from a customer, which account is debited?

a)

Cash

b)

Accounts Receivable

c)

Accounts Payable

d)

Bank Loan

2.

A company pays $2,000 to settle part of its bank loan. Which account is credited?

a)

Cash

b)

Accounts Payable

c)

Bank Loan

d)

Equity

3.

Assets are increased with a debit entry.

a)

True

b)

False

4.

A credit entry increases equity accounts.

a)

True

b)

False

5.

A business purchases office equipment worth $5,000 on credit. What is the correct journal entry?

a)

Debit: Office Equipment, Credit: Accounts Payable

b)

Debit: Cash, Credit: Office Equipment

c)

Debit: Accounts Payable, Credit: Office Equipment

d)

Debit: Office Equipment, Credit: Cash

6.

A business owner invests $10,000 into the company. Which accounts are affected?

a)

Debit: Cash, Credit: Owner's Equity

b)

Debit: Owner's Equity, Credit: Cash

c)

Debit: Bank Loan, Credit: Cash

d)

Debit: Cash, Credit: Accounts Payable

7.

A company receives $3,000 from a customer to pay off their outstanding balance. What is the journal entry?

a)

Debit: Cash, Credit: Accounts Receivable

b)

Debit: Accounts Payable, Credit: Cash

c)

Debit: Accounts Receivable, Credit: Sales

d)

Debit: Cash, Credit: Equity

8.

The company buys a building for $100,000 and pays $50,000 in cash, with the rest financed through a loan. What is the correct journal entry?

a)

Debit: Building $100,000, Credit: Cash $50,000, Credit: Bank Loan $50,000

b)

Debit: Cash $50,000, Credit: Building $100,000, Credit: Bank Loan $50,000

c)

Debit: Building $50,000, Credit: Bank Loan $50,000

d)

Debit: Cash $50,000, Credit: Building $50,000

9.

A business transfer $1,000 from its cash to the bank account. Which account is credited?

a)

Rent Expense

b)

Cash

c)

Accounts Payable

d)

Revenue

10.

The owner withdraws $2,000 for personal use. What is the correct journal entry?

a)

Debit: Capital, Credit: Cash

b)

Debit: Bank, Credit: Cash

c)

Debit: Cash, Credit: Capital

d)

Debit: Accounts Payable, Credit: Cash