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Debits & Credits

Total questions: 40

Worksheet time: 17mins

Name
Class
Date
1.

Debit or credit? Cash at bank increases

a)

Cash at bank is an asset, so it should be debited

b)

Cash at bank is an asset, so it should be credited

c)

Cash at bank is a liability, so it should be debited

d)

Cash at bank is a liability, so it should be credited

2.

Debit or credit? Loan increases

a)

Loan is an asset, so it should be debited

b)

Loan is an asset, so it should be credited

c)

Loan is a liability, so it should be debited

d)

Loan is a liability, so it should be credited

3.

Identify the correct reporting of the following transaction: Received $600 for services performed

a)

Debit Bank $600

b)

Debit Accounts Receivable $600

c)

Debit Bank $600; Credit Service Fees Revenue $600

d)

Debit Service Fees Revenue $600; Credit Bank $600;

4.

Identify all the correct statements below.

a)

If revenues are credit $500, assets may be debited $500

b)

If liabilities are debited $300, assets may be credited $300

c)

If expenses are debited $100, assets may be debited $100

d)

If expenses are debited $400, assets may be credited $400

5.

Identify the correct transaction given the following general journal entry: debit bank $800; credit service fees $800

a)

Performed services for cash $800

b)

Sold goods for cash $800

c)

Performed services for GSW Ltd on credit $800

d)

Received $800 from accounts receivable

6.

Identify the correct transaction given the following general journal entry: debit supplies $400; credit accounts payable OKC Ltd $400

a)

Purchased equipment from OKC Ltd $400 cash

b)

Sold supplies $400 cash

c)

Received a loan from OKC Ltd $400

d)

Purchased supplies from OKC Ltd $400 on credit

7.

Cash at Bank increase

a)

debit

b)

credit

8.

Capital increase

a)

debit

b)

credit

9.

Accounts payable increase

a)

debit

b)

credit

10.

Supplies/Inventory increase

a)

debit

b)

credit

11.

Cash at bank decrease

a)

debit

b)

credit

12.

Accounts receivable increase

a)

debit

b)

credit

13.

Supplies/inventory decrease

a)

debit

b)

credit

14.

Sales increase

a)

debit

b)

credit

15.

Capital decrease

a)

debit

b)

credit

16.

Accounts payable decrease

a)

debit

b)

credit

17.

Accounts receivable decrease

a)

debit

b)

credit

18.

Sales decrease

a)

debit

b)

credit

19.

Any asset increase

a)

debit

b)

credit

20.

Any liability increase

a)

debit

b)

credit

21.

Any owner's equity increase

a)

debit

b)

credit

22.

What is the normal balance for the Cash at Bank account?

a)
Debit
b)
Credit
23.
What is the normal balance for the Accounts Payable account?
a)
Debit
b)
Credit
24.
What is the normal balance for the Capital account?
a)
Debit
b)
Credit
25.
What is the normal balance for the Office Supplies account?
a)
Debit
b)
Credit
26.
What is the normal balance for the Expenses accounts?
a)
Debit
b)
Credit
27.

What is the normal balance for the Drawings account?

a)
Debit
b)
Credit
28.
What is the normal balance for the Revenue (Fees Earned) account?
a)
Debit
b)
Credit
29.
What is the normal balance for Liabilities accounts?
a)
Debit
b)
Credit
30.
What is the normal balance for Asset accounts?
a)
Debit
b)
Credit
31.

What is the normal balance for Capital Equity accounts?

a)
Debit
b)
Credit
32.
What does debit mean?
a)
Increase
b)
Decrease
c)
Left
d)
Right
33.

What does credit mean?

a)
Increase
b)
Decrease
c)
Left
d)
Right
34.

What does the acronym DEALER stand for in accounting?

a)

Debits, Expenses, Assets, Liabilities, Equity, Revenue

b)

Dividends, Expenses, Assets, Liabilities, Equity, Revenue

c)

Debits, Expenses, Assets, Liabilities, Equity, Retained Earnings

d)

Dividends, Expenses, Assets, Liabilities, Equity, Retained Earnings

35.

Which accounts are considered debit accounts in accounting?

a)

Dividends, Expenses, Assets

b)

Liabilities, Equity, Revenue

c)

Dividends, Expenses, Revenue

d)

Assets, Liabilities, Equity

36.

What happens to the balances of debit accounts when debits are recorded?

a)

They increase

b)

They decrease

c)

They stay the same

d)

It depends on the account type

37.

Which accounts are considered credit accounts in accounting?

a)

Dividends, Expenses, Assets

b)

Liabilities, Equity, Revenue

c)

Dividends, Expenses, Revenue

d)

Assets, Liabilities, Equity

38.

What happens to the balances of credit accounts when credits are recorded?

a)

They increase

b)

They decrease

c)

They stay the same

d)

It depends on the account type

39.

Where could cash come from as a source in a business?

a)

Borrowed from a third-party, owner's investment, earned from selling a product

b)

Borrowed from a third-party, owner's investment, earned from providing a service

c)

Borrowed from a third-party, owner's investment, earned from interest

d)

Borrowed from a third-party, owner's investment, earned from investments

40.

Where could cash go as a destination in a business?

a)

Distribute it back to the owners, pay the business's bills, purchase assets

b)

Distribute it back to the owners, pay the business's debts, purchase liabilities

c)

Distribute it back to the owners, pay the business's expenses, purchase expenses

d)

Distribute it back to the owners, pay the business's liabilities, purchase liabilities