by ebony.mertz
Step into the world of accounting where every transaction tells a story. This quiz will test your knowledge on journal entries, ensuring you can accurately record financial events. Whether you’re a seasoned accountant or just starting out, this quiz will help sharpen your skills and boost your confidence. Get ready to tackle these questions and prove your expertise!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Accounting Journal Entry Quiz Questions Overview
1. What is the primary purpose of a journal entry in accounting?
To summarize financial statements
To record financial transactions
To audit financial records
To prepare tax returns
2. Which account is debited when a company purchases office supplies on credit?
Accounts Payable
Office Supplies
Cash
Inventory
3. When a company receives cash from a customer for a previous sale, which account is credited?
Accounts Receivable
Sales Revenue
Cash
Unearned Revenue
4. Which of the following is a correct journal entry for paying rent with cash?
Debit Rent Expense, Credit Cash
Debit Cash, Credit Rent Expense
Debit Rent Expense, Credit Accounts Payable
Debit Accounts Payable, Credit Cash
5. What is the effect on the accounting equation when a company borrows money from a bank?
Assets increase, Liabilities increase
Assets decrease, Liabilities decrease
Assets increase, Equity increases
Assets decrease, Equity decreases
6. When a company provides services on account, which accounts are affected?
Debit Accounts Receivable, Credit Service Revenue
Debit Service Revenue, Credit Accounts Receivable
Debit Cash, Credit Service Revenue
Debit Service Revenue, Credit Cash
7. Which account is debited when a company receives a utility bill but does not pay it immediately?
Utilities Expense
Cash
Accounts Payable
Prepaid Utilities
8. What is the correct journal entry for issuing common stock for cash?
Debit Cash, Credit Common Stock
Debit Common Stock, Credit Cash
Debit Cash, Credit Retained Earnings
Debit Retained Earnings, Credit Cash
9. When a company declares dividends, which account is debited?
Dividends Payable
Cash
Retained Earnings
Dividends Expense
10. Which account is credited when a company sells merchandise on account?
Accounts Receivable
Sales Revenue
Cash
Inventory
11. What is the correct journal entry for purchasing equipment with a note payable?
Debit Equipment, Credit Note Payable
Debit Note Payable, Credit Equipment
Debit Equipment, Credit Cash
Debit Cash, Credit Equipment
12. When a company pays off a note payable, which account is debited?
Note Payable
Cash
Interest Expense
Accounts Payable
13. Which account is credited when a company receives cash for future services?
Unearned Revenue
Service Revenue
Cash
Accounts Receivable
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
