Journal Entry (I) Problems MCQs 1

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

Cash A/C

Sales A/C

Drawings A/C

Purchases A/C

Correct! Wrong!

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

Cash A/C Dr. To Drawing A/C

Cash A/C Dr. To Capital A/C

Drawing A/C Dr. To Cash A/C

Capital A/C Dr. To Cash A/C

Correct! Wrong!

Which account is credited when a business pays salaries?

Cash A/C

Capital A/C

Salaries Expense A/C

Rent Expense A/C

Correct! Wrong!

Which book is used first to record financial transactions?

Balance Sheet

Journal

Ledger

Trial Balance

Correct! Wrong!

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

Rent Expense A/C

Revenue A/C

Cash A/C

Capital A/C

Correct! Wrong!

The credit side of a journal entry records?

Increase in Asset

Increase in Expense

Decrease in Liability

Decrease in Assets

Correct! Wrong!

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

Cash A/C Dr. To Debtor’s A/C

Sales A/C Dr. To Cash A/C

Debtor’s A/C Dr. To Cash A/C

Cash A/C Dr. To Sales A/C

Correct! Wrong!

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

Posting

Reconciling

Trial balancing

Balancing

Correct! Wrong!

Which transaction requires two debit entries and one credit entry?

Simple journal entry

Compound journal entry

Adjusting entry

Closing entry

Correct! Wrong!

Which of the following follows the double-entry principle?

Balance Sheet

Trial Balance

Journal

Ledger

Correct! Wrong!

Journal Entry (I) Problems MCQs 1

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

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

Which account is credited when a business pays salaries?

Which book is used first to record financial transactions?

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

The credit side of a journal entry records?

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

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

Which transaction requires two debit entries and one credit entry?

Which of the following follows the double-entry principle?

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