Debits and Credits Quiz
29 multiple-choice questions with answers and explanations · 16 easy, 11 medium, 2 hard
Which side increases which account, normal balances, and the journal entry for everyday transactions — the rules every other accounting topic is built on.
- 1Debit or Credit: Which Side Increases an Asset Account?In double-entry bookkeeping, an increase in an asset account such as Cash or Equipment is recorded as a:easy
- 2Normal Balance of Accounts Payable: Debit or Credit?What is the normal balance of Accounts Payable, and which entry increases it?easy
- 3What Do Debit and Credit Mean in Accounting?In accounting, the terms debit (Dr) and credit (Cr) simply mean:easy
- 4Debit or Credit: Recording Revenue EarnedA business earns service revenue. The revenue account is:easy
- 5Normal Balance of the Owner's Drawings AccountThe Drawings (owner's withdrawals) account normally has a:easy
- 6Debit and Credit Rules: Which Accounts Increase with a Debit?Which group of accounts is increased by a DEBIT entry?easy
- 7Journal Entry for Paying Rent in Cash: Debit and CreditA business pays $1,200 rent for the current month in cash. Which journal entry is correct?easy
- 8Journal Entry for Buying Office Supplies on CreditA business buys $400 of office supplies on account from a supplier. Which journal entry records the purchase?easy
- 9Journal Entry When a Customer Pays an InvoiceA customer pays $900 that it owed on an earlier credit sale. The business records:easy
- 10Identify the Debit Entry: Owner Invests Cash in the BusinessThe owner pays $10,000 of personal money into the business bank account. Which account is DEBITED?easy
- 11Identify the Debit Entry: Paying a Supplier on AccountA business pays $2,500 to a supplier for goods it bought on credit last month. Which account is DEBITED?medium
- 12Debit or Credit: Recording a Bank Loan ReceivedA business receives a $20,000 bank loan, paid straight into its bank account. Which entry is correct?medium
- 13Debit or Credit: Loan Interest Charged by the BankThe bank deducts $120 of interest on a business loan directly from the business bank account. Which entry records it?medium
- 14Debit and Credit Entry for Owner DrawingsThe owner of a sole proprietorship withdraws $800 cash from the business for personal use. Which entry is correct?medium
- 15Compound Journal Entry: Buying Equipment with Cash and a Note PayableEquipment costing $12,000 is bought by paying $3,000 in cash and signing a note payable for the balance. Which entry is correct?medium
- 16Trial Balance: Which Accounts Go in the Debit Column?Which list contains ONLY accounts that appear in the debit column of a trial balance?medium
- 17Trial Balance Debit and Credit Totals: Finding the Missing CapitalA trial balance lists Cash $6,000, Accounts Receivable $4,000, Equipment $15,000, Expenses $9,000, Accounts Payable $5,000, Revenue $14,000 and Capital. If the trial balance agrees, Capital is:medium
- 18Debit or Credit: Cash Received in Advance from a CustomerA customer pays $600 today for a service the business will perform next month. Which entry records the receipt?medium
- 19Normal Balance Quiz: Which Account Has a Debit Balance?Which of these accounts normally has a DEBIT balance?medium
- 20Debit or Credit: Recording a Sales Return from a Credit CustomerA customer returns $300 of goods that were sold to it on credit and not yet paid for. Ignoring the cost of the goods, the seller records:medium
- 21Debits and Credits for an Overdrawn Bank AccountIf the Cash at Bank account shows a CREDIT balance in the business’s own ledger, this means:medium
- 22Trial Balance Error: An Expense Posted to the Wrong SideA $500 electricity payment was correctly credited to Cash but was wrongly CREDITED to Electricity Expense instead of debited. By how much will the trial balance totals differ?hard
- 23Transposition Error in a Trial Balance: The Divisible-by-9 TestThe debit total of a trial balance exceeds the credit total by $270. Which error is the most likely cause?hard
- 24Accumulated Depreciation — ClassificationAccumulated Depreciation is best described as:easy
- 25Sales Returns and Allowances — ClassificationSales Returns and Allowances is best described as:easy
- 26Source Documents — Credit SaleWhich source document does a seller issue to the customer at the time of a credit sale?easy
- 27Debit and Credit Rules — ExpensesAn increase in an expense account is recorded as:easy
- 28The Allowance for Doubtful Accounts as a Contra AccountThe Allowance for Doubtful Accounts is best described as:easy
- 29Sales Discounts as a Contra-Revenue AccountWhich of the following is a CONTRA-REVENUE account, reported as a deduction from Sales in arriving at net sales?easy