Debits and credits quiz

1. 1.A debit to Owner Drawings:

   Increases equityIs an expenseDecreases drawingsIncreases drawings and decreases equity
2. 2.Collecting $800 from a customer on account:

   Dr Accounts Receivable $800, Cr Cash $800Dr Service Revenue, Cr Accounts ReceivableDr Cash $800, Cr Service Revenue $800Dr Cash $800, Cr Accounts Receivable $800
3. 3.To record an increase in Rent Expense you:

   Credit itDebit CashCredit Owner CapitalDebit it
4. 4.Buying supplies on credit is recorded as:

   Dr Accounts Payable, Cr SuppliesDr Supplies Expense, Cr CashDr Cash, Cr SuppliesDr Supplies, Cr Accounts Payable
5. 5.Paying interest on a loan debits:

   Interest RevenueCashInterest ExpenseNotes Payable
6. 6.Which pair is a valid entry for owner investing cash?

   Dr Owner Capital, Cr CashDr Cash, Cr Service RevenueDr Cash, Cr Notes PayableDr Cash, Cr Owner Capital
7. 7.A customer returns goods bought on account. Which line is a debit?

   Sales RevenueCashSales Returns and AllowancesAccounts Receivable
8. 8.Total debits are $5,200 and total credits are $4,900. What is the difference to investigate?

   $10,100None$300 more credits$300 more debits
9. 9.Recording depreciation credits:

   Accumulated DepreciationDepreciation ExpenseCashEquipment
10. 10.Which entries correctly record a cash sale of services? Select all that apply.

    Dr Service Revenue / Cr CashDr Cash / Cr Unearned RevenueCr Service Revenue / Dr Cash (lines in reverse order)Dr Cash / Cr Service Revenue

    Select all that apply.

11. 11.A credit decreases which account?

    Unearned RevenueNotes PayableAccumulated DepreciationCash
12. 12.Which accounts increase with a credit? Select all that apply.

    Sales DiscountsInterest RevenueAllowance for Doubtful AccountsUnearned Revenue

    Select all that apply.

13. 13.Why can a balanced entry still be wrong?

    It may use the wrong account, amount, or dateDebits must always exceed creditsOnly entries with cash can be wrongIt can't — balanced means correct
14. 14.Every journal entry must have:

    Exactly two linesA cash lineA revenue or expense lineEqual total debits and credits
15. 15.For each change, choose the side.

    Increase Accounts ReceivableChoose…DebitCreditDecrease Accounts PayableChoose…DebitCreditIncrease Service RevenueChoose…DebitCreditIncrease Owner DrawingsChoose…DebitCreditDecrease Prepaid InsuranceChoose…DebitCredit
16. 16.A debit increases which account?

    EquipmentService RevenueOwner CapitalAccounts Payable

Explanations for every option appear after you submit. Debits and credits quiz is self-practice, not a proctored test.