Accounting Multiple Choice Quiz

Which account type increases with a debit?

• Liabilities

• Assets

• Capital

• Revenue

When recording an increase in revenue, which entry should you use?

• Debit

• Credit

• Neither

• Both

Which account type decreases with a debit entry?

• Assets

• Liabilities

• Expenses

• Revenue

If you buy equipment for cash, what is the correct journal entry?

• Debit Equipment, Credit Bank

• Credit Equipment, Debit Bank

• Debit Bank, Credit Equipment

• Credit Equipment, Credit Bank

When paying rent, which account is debited?

• Bank

• Rent Expense

• Capital

• Revenue

A business owner invests cash into the business. Which account should be credited?

• Bank

• Capital

• Loan Payable

• Equipment

Which type of account increases with a credit entry?

• Expenses

• Assets

• Revenue

• Bank

In a transaction involving a loan, which account is debited?

• Loan Payable

• Bank

• Accounts Receivable

• Rent Expense

When a liability account increases, which entry is recorded?

• Debit

• Credit

• Neither

• Both

If a business makes a sale on credit, what is the journal entry?

• Debit Accounts Receivable, Credit Sales Revenue

• Debit Sales Revenue, Credit Accounts Receivable

• Debit Bank, Credit Sales Revenue

• Debit Sales Revenue, Credit Bank