Journal Entry (I) Problems MCQs 1

The credit side of a journal entry records?

Decrease in Assets

Increase in Expense

Increase in Asset

Decrease in Liability

Correct! Wrong!

Which of the following is a correct journal entry for receiving cash from a debtor?

Debtor’s A/C Dr. To Cash A/C

Sales A/C Dr. To Cash A/C

Cash A/C Dr. To Sales A/C

Cash A/C Dr. To Debtor’s A/C

Correct! Wrong!

Which journal entry is correct for owner investing cash into the business?

Cash A/C Dr. To Drawing A/C

Drawing A/C Dr. To Cash A/C

Cash A/C Dr. To Capital A/C

Capital A/C Dr. To Cash A/C

Correct! Wrong!

Which of the following follows the double-entry principle?

Ledger

Trial Balance

Journal

Balance Sheet

Correct! Wrong!

Which book is used first to record financial transactions?

Balance Sheet

Ledger

Trial Balance

Journal

Correct! Wrong!

The process of transferring journal entries to ledger accounts is called?

Posting

Trial balancing

Balancing

Reconciling

Correct! Wrong!

Which transaction requires two debit entries and one credit entry?

Adjusting entry

Simple journal entry

Compound journal entry

Closing entry

Correct! Wrong!

If rent is paid in cash, which account is debited?

Revenue A/C

Capital A/C

Cash A/C

Rent Expense A/C

Correct! Wrong!

Which account is credited when a business pays salaries?

Rent Expense A/C

Salaries Expense A/C

Capital A/C

Cash A/C

Correct! Wrong!

In a journal entry, which account is credited when goods are sold for cash?

Cash A/C

Drawings A/C

Sales A/C

Purchases A/C

Correct! Wrong!

Journal Entry (I) Problems MCQs 1

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Journal Entry (I) Problems MCQs 1

The credit side of a journal entry records?

Which of the following is a correct journal entry for receiving cash from a debtor?

Which journal entry is correct for owner investing cash into the business?

Which of the following follows the double-entry principle?

Which book is used first to record financial transactions?

The process of transferring journal entries to ledger accounts is called?

Which transaction requires two debit entries and one credit entry?

If rent is paid in cash, which account is debited?

Which account is credited when a business pays salaries?

In a journal entry, which account is credited when goods are sold for cash?

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