Accounting Journal Quiz

What is the purpose of a general journal?

• To record only cash transactions of a business.

• To record all financial transactions of a business in chronological order.

• To record all non-financial transactions of a business.

• To record financial transactions of a business in alphabetical order.

Which account is debited when a company receives cash from a customer?

• Accounts Receivable

• Cash

• Accounts Payable

• Inventory

Which account is debited when a company pays rent expense?

• Utilities Expense

• Rent Income

• Rent Expense

• Accounts Payable

What is the normal balance of an expense account?

• credit

• asset

• zero balance

• debit

Which account is debited when a company purchases Equipment on credit?

• Accounts Payable

• Cash

• Equipment

• Accounts Receivable

Which account is credited when a company receives Cash from Sales?

• Interest Income

• Sales

• Rent Expense

• Salaries Payable

What is the purpose of a general journal entry?

• To record financial transactions that occur

• To calculate payroll taxes

• To track inventory levels

• To record personal expenses

Which account is debited when a company pays salaries to employees?

• Rent Expense

• Accounts Payable

• Salaries Expense

• Cash

Which account is credited when a company sells services on credit?

• Accounts Receivable

• Inventory

• Accounts Payable

• Cash

What is the normal balance of a liability account?

• credit

• zero

• positive

• debit