WorksheetsDay 2 Quiz Bank – Chapter 2: Core Mechanics
Total questions: 20
Worksheet time: 4hrs 6mins
The accounting equation is:
Assets = Liabilities – Equity
Assets = Liabilities + Equity
Assets = Revenues – Expenses
Assets = Equity – Liabilities
Which of the following increases with a debit?
Liabilities
Common stock
Dividends
Revenue
The DEALOR acronym helps remember that:
Dividends, Expenses, Assets increase with Debits; Liabilities, Owners’ equity, Revenue increase with Credits
Dividends, Equity, Assets increase with Credits; Liabilities, Owners’ equity, Revenue increase with Debits
Dividends, Expenses, Assets always increase with Credits
DEALOR represents the six financial statements
Recording a purchase of equipment on account involves which accounts?
Debit Cash, Credit Accounts Receivable
Debit Equipment, Credit Accounts Payable
Debit Accounts Payable, Credit Equipment
Debit Supplies, Credit Cash
What is the correct order of the accounting cycle steps (before adjustments)?
Record journal entries → prepare trial balance → post to ledger
Prepare trial balance → post to ledger → record journal entries
Post to ledger → record journal entries → prepare trial balance
Prepare financial statements → journal entries → post to ledger
Which of the following is NOT true about a trial balance?
It lists accounts and their balances
Debits must equal credits
It proves all transactions are correct
It is prepared before adjustments
A credit to a liability account means:
The liability increases
The liability decreases
The liability is paid off
No impact
Which entry correctly records payment of rent expense with cash?
Debit Rent Expense, Credit Cash
Debit Cash, Credit Rent Expense
Debit Rent Expense, Credit Accounts Payable
Debit Accounts Payable, Credit Cash
Cash increase
debit
credit
Capital increase
debit
credit
In accounting, which of the following increases the amount in an account
Debit
Credit
Increases to accounts are always on the debit side and decreases are always on the credit side.
TRUE
FALSE
Which of the following accounts would typically have a debit balance?
Revenue
Liability
Asset
Equity
What is the effect of a debit entry on an expense account?
Increases the account
Decreases the account
No effect
Transfers the balance
What is the fundamental principle of double-entry bookkeeping?
Every transaction affects at least two accounts.
Every transaction affects only one account.
Every transaction must be recorded in a journal.
Every transaction must be approved by an accountant.
In double-entry bookkeeping, what must the total debits equal?
Total credits
Total assets
Total liabilities
Total expenses
If a company pays off a liability, how would this transaction be recorded?
Debit Liability, Credit Cash
Debit Cash, Credit Liability
Debit Expense, Credit Cash
Debit Cash, Credit Revenue
Which account type increases with a credit?
Asset
Expense
Liability
Dividend
In double-entry accounting, every transaction affects at least how many accounts?
One
Two
Three
Four
Which account type decreases with a debit?
Asset
Liability
Expense
Dividend
