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Quiz:
Journal Entries QuizQuizPublic Unlisted

Quiz:Journal Entries Quiz

Journal Entries Quiz

1.When a business takes out a $5,000 loan from a bank, which of the following best describes the effect on the accounting equation?

2.Which side of an account does a Credit (Cr.) represent in double-entry bookkeeping?

3.If you buy a $2,000 computer for your business using cash, what is the correct journal entry?

4.According to the normal balance rules, which of the following account types are increased by a Debit?

5.You deliver a consulting service to a client and bill them $1,500 to be paid next month. What is the correct journal entry?

6.True or False: Under accrual accounting, unearned revenue is classified as an asset.

7.A client pays you $600 in advance for services you will perform next month. How should this initial cash receipt be recorded?

8.Which fundamental principle requires that expenses be recorded in the same period as the revenues they helped generate?

9.If a company has high revenue and a strong operating income (EBIT), but ends up with a negative net income (a net loss), what is the most likely cause?

10.What is the fundamental accounting equation that must always remain in balance?

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