Journal Entry (I) Problems MCQs 1

Which account is credited when a business pays salaries?

Salaries Expense A/C

Capital A/C

Cash A/C

Rent Expense A/C

Correct! Wrong!

The credit side of a journal entry records?

Decrease in Assets

Increase in Expense

Increase in Asset

Decrease in Liability

Correct! Wrong!

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

Cash A/C

Revenue A/C

Capital A/C

Rent Expense A/C

Correct! Wrong!

Which book is used first to record financial transactions?

Trial Balance

Balance Sheet

Ledger

Journal

Correct! Wrong!

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

Reconciling

Balancing

Posting

Trial balancing

Correct! Wrong!

Which of the following follows the double-entry principle?

Journal

Ledger

Trial Balance

Balance Sheet

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

Capital A/C Dr. To Cash A/C

Cash A/C Dr. To Capital A/C

Correct! Wrong!

Which transaction requires two debit entries and one credit entry?

Closing entry

Adjusting entry

Compound journal entry

Simple journal entry

Correct! Wrong!

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

Sales A/C

Cash A/C

Purchases A/C

Drawings A/C

Correct! Wrong!

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

Sales A/C Dr. To Cash A/C

Debtor’s A/C Dr. To Cash A/C

Cash A/C Dr. To Debtor’s A/C

Cash A/C Dr. To Sales A/C

Correct! Wrong!

Journal Entry (I) Problems MCQs 1

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Journal Entry (I) Problems MCQs 1

Which account is credited when a business pays salaries?

The credit side of a journal entry records?

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

Which book is used first to record financial transactions?

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

Which of the following follows the double-entry principle?

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

Which transaction requires two debit entries and one credit entry?

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

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

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