01
True or false
1 point
A debit is an entry on the left side of an account, but it does not automatically mean that the account increased. True or false?
Free Practice Quiz Question List
3 Recording Transactions and the Accounting Cycle Online Quiz Questions
Use this free practice quiz with 20 questions to review 3 Recording Transactions and the Accounting Cycle, test your knowledge, and prepare for your next test or exam.
20 questions
02
Choose one
1 point
An owner invests $10,000 cash in a new business. Which journal entry records this transaction?
- A
Debit Owner’s Capital $10,000; credit Cash $10,000
- B
Debit Cash $10,000; credit Owner’s Capital $10,000
- C
Debit Cash $10,000; credit Service Revenue $10,000
- D
Debit Equipment $10,000; credit Owner’s Capital $10,000
03
Fill in the blank
1 point
A business buys supplies on credit. Supplies increase with a , and Accounts Payable increases with a .
04
Written response
1 point
Which type of entry decreases Accounts Payable?
05
True or false
1 point
If an unadjusted trial balance has equal debit and credit totals, this proves that every transaction has been recorded and classified correctly. True or false?
- A
True
- B
False
06
Choose one
1 point
Which statement correctly distinguishes a journal from a ledger?
- A
The journal groups all activity by account, while the ledger lists transactions in date order.
- B
Both the journal and ledger list transactions only in date order.
- C
The journal lists transactions in date order, while the ledger groups entries by account.
- D
The journal contains only balances, while the ledger contains only transaction explanations.
07
Choose all
1 point
Select all errors that can occur even when an unadjusted trial balance’s total debits equal its total credits.
- A
A transaction is omitted entirely.
- B
An equal amount is entered in the wrong accounts.
- C
Only the debit side of a transaction is recorded.
- D
A debit is recorded for an amount different from its corresponding credit.
08
Fill in the blank
1 point
An unadjusted trial balance is prepared after and before .
09
Written response
1 point
A business buys $800 of supplies on credit and later pays the supplier $500. How many dollars does it still owe the supplier?
10
Choose one
1 point
A business pays a supplier $500 toward an amount previously owed. Which entry records the payment?
- A
Debit Cash $500; credit Accounts Payable $500
- B
Debit Accounts Payable $500; credit Cash $500
- C
Debit Rent Expense $500; credit Cash $500
- D
Debit Accounts Payable $500; credit Service Revenue $500
11
Choose all
1 point
Select all accounts that normally increase with a debit.
- A
Cash
- B
Equipment
- C
Rent Expense
- D
Accounts Payable
- E
Service Revenue
12
Written response
1 point
In the unadjusted trial balance, Cash is $8,300 debit, Equipment is $3,000 debit, Supplies is $800 debit, and Rent Expense is $600 debit. What is the total of the debit column in dollars?
13
Choose one
1 point
A business buys equipment for $3,000 cash. Which entry records the transaction?
- A
Debit Equipment $3,000; credit Cash $3,000
- B
Debit Cash $3,000; credit Equipment $3,000
- C
Debit Equipment $3,000; credit Accounts Payable $3,000
- D
Debit Rent Expense $3,000; credit Cash $3,000
14
Open ended
1 point
A service business earns $2,400 in revenue and receives the cash immediately. Describe the two accounts affected, the debit and credit amounts, and why the journal entry is balanced.
15
Choose one
1 point
A business buys supplies on credit. Which account effects correctly record the transaction?
- A
Debit Accounts Payable and credit Supplies.
- B
Debit Supplies and credit Accounts Payable.
- C
Debit Supplies and credit Cash.
- D
Debit Accounts Receivable and credit Supplies.
16
True or false
1 point
A debit entry always increases the balance of the account to which it is posted.
- A
True
- B
False
17
Choose one
1 point
An owner invests cash in a business. Which journal entry records the increase in cash and the owner’s equity?
- A
Debit Cash and credit Owner’s Capital.
- B
Debit Owner’s Capital and credit Cash.
- C
Debit Cash and debit Owner’s Capital.
- D
Credit Cash and credit Owner’s Capital.
18
Choose one
1 point
Which statement best distinguishes a journal from a ledger?
- A
The journal groups entries by account; the ledger lists transactions in date order.
- B
Both the journal and ledger list transactions only in date order.
- C
The journal lists transactions in date order; the ledger groups activity by account.
- D
The ledger records only transactions that affect cash.
19
Choose one
1 point
How do revenue and expenses affect the accounting equation through equity?
- A
Revenue decreases equity, while expenses increase equity.
- B
Revenue and expenses both increase equity.
- C
Revenue increases equity, while expenses decrease equity.
- D
Revenue increases liabilities, while expenses decrease assets.
20
Written response
1 point
What report lists each ledger account and its debit or credit balance after posting but before adjusting entries?