Double-Entry Accounting Basics Quiz

Double-Entry Accounting Basics Quiz

9th Grade

10 Qs

quiz-placeholder

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Double-Entry Accounting Basics Quiz

Double-Entry Accounting Basics Quiz

Assessment

Quiz

Computers

9th Grade

Hard

Created by

Yolanda Williams

Used 8+ times

FREE Resource

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the fundamental principle behind double-entry accounting?

Each transaction affects only one account.

Each transaction is recorded twice, once as a debit and once as a credit.

Each transaction must involve a cash account.

Each transaction is recorded in a single journal.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In double-entry accounting, if a business takes out a loan, which of the following is true?

The loan account is debited, and the cash account is credited.

The cash account is debited, and the loan account is credited.

Both the loan account and the cash account are debited.

Both the loan account and the cash account are credited.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does a debit entry in an asset account signify?

A decrease in the asset

An increase in the asset

No change in the asset

Transfer of the asset

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following statements is true regarding double-entry accounting?

The total debits must equal the total credits in each transaction.

The total debits must always be greater than the total credits.

The total credits must always be greater than the total debits.

Only one account can be debited or credited in a transaction.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a company purchases inventory on credit, how is this recorded in double-entry accounting?

Debit inventory account, credit cash account

Debit cash account, credit inventory account

Debit inventory account, credit accounts payable account

Debit accounts receivable account, credit inventory account

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What effect does a credit entry in a liability account have?

It decreases the liability.

It increases the liability.

It has no effect on the liability.

It transfers the liability to another account.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In double-entry accounting, what is the effect of debiting a revenue account?

Increase in revenue

Decrease in revenue

No change in revenue

Transfer of revenue to another account

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