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Debits and Credits(Quick Test #3)

Author:
Harold Averkamp, CPA, MBA

After you have answered all 40 questions, click "Grade This Quick Test" at the bottom of the page to view your grade and receive feedback on your answers.

Note: Some of the following test questions may not have been covered in the Explanation or Practice Quiz for this topic. For more insight regarding a specific question, use the search box at the top of the page.

    1. 1. Recording each transaction with a minimum of one debit and one credit is known as __________ -entry bookkeeping.

    2. 2. An entry on the left side of a T-account is a __________.

    3. 3. The journal entry to record depreciation is recorded in the __________ journal.

    4. 4. The entries recorded in the general journal are also posted to accounts in the __________ __________.

    5. 5. A listing of the names and numbers of the accounts that are available for recording transactions is the __________ of accounts.

    6. 6. A listing of all of the account balances to show that the total of the debit balances is equal to the total of the credit balances is a __________ __________.

    7. 7. Entries to bring the accounts up to the accrual basis of accounting prior to issuing the financial statements are known as __________ entries.

    8. 8. In a manual accounting system, the entries made at the end of the accounting year to the income statement accounts after the financial statements have been prepared are __________ entries.

    9. 9. The accounting equation for a corporation is assets = liabilities + stockholders’ __________.

    10. 10. Purchasing supplies on credit will be recorded with a credit to the account __________ __________.

    11. 11. Sales of merchandise and fees earned from providing services are examples of the income statement element __________.

    12. 12. A company providing services on credit will debit the account __________ __________.

    13. 13. The financial statement that has the form of the accounting equation is the __________ __________.

    14. 14. The word for a cost that has expired or has been matched with revenues is __________.

    15. 15. The income statement accounts are referred to as __________ accounts.

    16. 16. The sole proprietor’s drawing account is closed to the __________ account.

    17. 17. Revenues have the effect of causing owner’s or stockholders’ equity to __________.

    18. 18. When a company pays a bill by writing a check, the account Cash is __________.

    19. 19. The account that is debited when a sole proprietor withdraws some of the business’s cash for personal use is __________.

    20. 20. “Book of original entry” describes __________.

    21. 21. Accumulated Depreciation will be reported on which financial statement?

    22. 22. Under the accrual basis of accounting, a payment in late 2023 for the 2024 insurance expense will decrease the asset Cash and will __________.

    23. 23. Recording revenues when they are earned rather than when the money is received is part of which basis or method of accounting?

    24. 24. Generally, the balances in which accounts are closed at the end of the accounting year?

    25. 25. Under the accrual basis of accounting, which of the following will NOT cause a change in owner’s equity?

    26. 26. In a manual accounting system, at the end of the accounting year the balance in Depreciation Expense is closed to __________.

    27. 27. Which is NOT an expense on the income statement of a sole proprietorship?

    28. 28. Under the accrual basis of accounting, owner’s equity is increased by

    29. For each of the accounts in items 29 - 39, indicate which type of balance you would expect to find in the account:
      debit
      credit

    30. 29. Revenue accounts

    31. 30. Expense accounts

    32. 31. Inventory

    33. 32. Accounts Payable

    34. 33. R. Smith, Drawing

    35. 34. Accumulated Depreciation

    36. 35. Sales Returns and Allowances

    37. 36. Purchases (of merchandise for resale)

    38. 37. Purchase Discounts

    39. 38. Allowance for Doubtful Accounts

    40. 39. Contra-liability accounts

    41. 40. A sole proprietor’s owner’s equity balance was $10,000 at the beginning of the year and was $22,000 at the end of the year. During the year the owner invested $5,000 in the business and had withdrawn $24,000 for personal use. The sole proprietorship’s net income for the year was $__________.

Any questions left unanswered will be marked incorrect.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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