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WorksheetsDebit and Credits in accounting
Total questions: 35
Worksheet time: 19mins
Which side of a T-account is the debit side?
Left
Right
Top
Bottom
What is the normal balance of an asset account?
Credit
Debit
Both
Neither
Which account type has a Normal credit balance?
Asset
Expense
Liability
Drawing
In accounting, which scenario would a "credit" be the correct transaction?
Increase in assets
Decrease in liabilities
Increase in liabilities or equity
Decrease in revenue
Which of the following accounts is increased by a debit entry?
Revenue
Liability
Asset
Capital
What is the effect of a credit entry on an asset account?
Increases the account
Decreases the account
No effect
Doubles the account
Which of the following is NOT a type of account in accounting?
Asset
Liability
Revenue
Transaction
If you debit the Cash account, what happens to its balance?
It increases
It decreases
It stays the same
It is closed
Which of the following transactions would require a credit to the Service Revenue account?
Paying rent
Earning fees for services performed
Purchasing supplies
Paying salaries
What is the double-entry accounting rule?
Every transaction affects only one account
Every transaction must be recorded in at least two accounts
Only cash transactions are recorded
Only credit transactions are recorded
A company pays $500 cash for office supplies. Which accounts are affected and how?
Debit Supplies, Credit Cash
Debit Cash, Credit Supplies
Debit Supplies, Credit Revenue
Debit Revenue, Credit Cash
If a business receives $1,000 from a customer for services performed, what is the correct journal entry?
Debit Service Revenue, Credit Cash
Debit Cash, Credit Service Revenue
Debit Accounts Payable, Credit Cash
Debit Cash, Credit Accounts Payable
Which of the following transactions would increase both an asset and a liability?
Borrowing money from a bank
Paying off a loan
Purchasing equipment with cash
Receiving cash from a customer
A business purchases equipment for $2,000 on credit. What is the correct journal entry?
Debit Equipment, Credit Accounts Payable
Debit Accounts Payable, Credit Equipment
Debit Equipment, Credit Cash
Debit Cash, Credit Equipment
If a company pays $300 for utilities, which accounts are affected?
Debit Utilities Expense, Credit Cash
Debit Cash, Credit Utilities Expense
Debit Utilities Expense, Credit Accounts Payable
Debit Accounts Payable, Credit Utilities Expense
A customer pays $400 in advance for Insurance. What is the correct journal entry?
Debit Cash, Credit Prepaid Insurance
Debit Revenue, Credit Cash
Debit Prepaid Insurance
Credit Cash
Debit Cash, Credit Service Revenue
Which of the following transactions would require a debit to Accounts Receivable?
Providing services on account
Paying off a supplier
Receiving payment from a customer
Purchasing supplies for cash
If a business owner withdraws $200 cash for personal use, what is the correct journal entry?
Debit Drawing, Credit Cash
Debit Cash, Credit Drawing
Debit Capital, Credit Cash
Debit Cash, Credit Capital
A company receives a bill for $150 for advertising, to be paid next month. What is the correct journal entry?
Debit Advertising Expense, Credit Accounts Payable
Debit Accounts Payable, Credit Advertising Expense
Debit Cash, Credit Advertising Expense
Debit Advertising Expense, Credit Cash
If a business pays $600 to a supplier for a previous purchase, what is the correct journal entry?
Debit Accounts Payable, Credit Cash
Debit Cash, Credit Accounts Payable
Debit Supplies, Credit Cash
Debit Cash, Credit Supplies
A company has the following balances: Cash 2,000, Accounts Payable 1,200 , and Equipment $3,000 . What is the total of the DEBIT balances?
$1,200
$2,000
$3,000
$5,000
If a business makes a sale of $800 on account, how does this affect the accounting equation?
Increases assets and increases equity
Increases assets and decreases liabilities
Decreases assets and increases equity
Increases liabilities and decreases equity
A company paid 400 for rent and 200 for utilities using cash, What is the total decrease in assets?
$200
$400
$600
$0
If a business receives $1,000 cash from a customer for a previous credit sale, what is the effect on Accounts Receivable and Cash?
Increase Accounts Receivable, Decrease Cash
Decrease Accounts Receivable, Increase Cash
Increase both Accounts Receivable and Cash
Decrease both Accounts Receivable and Cash
A company purchased supplies for $500 cash and recorded the transaction as a debit to Supplies and a credit to Cash. What is the impact on the accounting equation?
Assets increase, liabilities decrease
Assets increase, assets decrease (no net change)
Liabilities increase, assets decrease
Equity increases, assets decrease
If a business owner invests $2,000 cash into the business, what is the effect on the accounting equation?
Increase assets and increase equity
Increase assets and increase liabilities
Decrease assets and increase equity
Increase liabilities and decrease equity
A company has the following transactions: Paid 300 for utilities and recieved 500 from customers, and purchased $200 of supplies on account. What is the net effect on assets?
Increase by $200
Increase by $500
Decrease by $100
Increase by $0
If a company pays $700 cash to settle an account payable, what is the effect on the accounting equation?
Decrease assets and decrease liabilities
Increase assets and increase liabilities
Decrease assets and increase equity
Increase assets and decrease liabilities
A business receives a $1,000 loan from the bank. What is the effect on the business’s accounts?
Debit Cash, Credit Notes Payable
Debit Notes Payable, Credit Cash
Debit Cash, Credit Capital
Debit Capital, Credit Cash
BONUS EXTRA CREDIT*****A company earned $600 in revenue $400 was received in cash and $200 was on account. What is the correct journal entry?
Debit Cash 200, Debit A/R 400.00 Credit Service Revenue 600
Debit Service Revenue 600 Credit Cash 400, Credit Accounts Receivable 200
Debit Cash 600, Credit Service Revenue 600
Debit Accounts Receivable 600, Credit Service Revenue 600
.A financial statement that reports assets, liabilities, and owner’s equity on a specific date.
profit and loss statement
cash flow
balance sheet
income statement
Which financial statement provides an overview of a business's financial position at a specific point in time?
Cash Flow Statement
Income Statement
Balance Sheet
Statement of Retained Earnings
The Balance Sheet must (a) balance
A financial statement showing revenue and expenses for a fiscal period.
income statement
balance sheet
net income
net loss
Kathy wants to know whether her boutique made or lost money this month. The financial document she should view is her:
balance sheet
income statement
cash flow statement
statement of owner’s equity
