Which of the following transactions would require a credit to the Service Revenue account?

Earning fees for services performed

What is the double-entry accounting rule?

Every transaction must be recorded in at least two accounts

Every transaction affects only one account

Only cash transactions are recorded

Only credit transactions are recorded

If a business receives $1,000 from a customer for services performed, what is the correct journal entry?

Debit Cash, Credit Service Revenue

Debit Service Revenue, Credit Cash

Debit Accounts Payable, Credit Cash

Debit Cash, Credit Accounts Payable

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

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 Prepaid Insurance Credit Cash

Debit Cash, Credit Prepaid Insurance

Debit Cash, Credit Service Revenue

Which of the following transactions would require a debit to Accounts Receivable?

Receiving payment from a customer

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

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

If a business receives $1,000 cash from a customer for a previous credit sale, what is the effect on Accounts Receivable and Cash?

Decrease Accounts Receivable, Increase Cash

Increase Accounts Receivable, Decrease 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, assets decrease (no net change)

Assets increase, liabilities decrease

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

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

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

Debit and Credits in accounting

Authored by Carrie Flynn

Business

10th Grade

Used 3+ times

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35 questions

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MULTIPLE CHOICE QUESTION

30 sec • 3 pts

Which side of a T-account is the debit side?

Left

Right

Top

Bottom

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

What is the normal balance of an asset account?

Credit

Debit

Both

Neither

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

Which account type has a Normal credit balance?

Asset

Expense

Liability

Drawing

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

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

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

Which of the following accounts is increased by a debit entry?

Revenue

Liability

Asset

Capital

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

What is the effect of a credit entry on an asset account?

Increases the account

Decreases the account

No effect

Doubles the account

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

Which of the following is NOT a type of account in accounting?

Asset

Liability

Revenue

Transaction

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Debit and Credits in accounting

Which side of a T-account is the debit side?

What is the normal balance of an asset account?

Which account type has a Normal credit balance?

In accounting, which scenario would a "credit" be the correct transaction?

Which of the following accounts is increased by a debit entry?

What is the effect of a credit entry on an asset account?

Which of the following is NOT a type of account in accounting?

If you debit the Cash account, what happens to its balance?

Which of the following transactions would require a credit to the Service Revenue account?

What is the double-entry accounting rule?

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