Quiz: Will You Pass This Accounting Test?

10 Questions

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Quiz: Will You Pass This Accounting Test?

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Questions and Answers
  • 1. 
    What does DEBIT mean?
    • A. 

      Decrease

    • B. 

      Increase

    • C. 

      Right side

    • D. 

      Left side

  • 2. 
    What does CREDIT mean?
    • A. 

      Decrease

    • B. 

      Increase

    • C. 

      Right side

    • D. 

      Left side

  • 3. 
    What is a ledger?
    • A. 

      A T account

    • B. 

      A group of T accounts

    • C. 

      Any financial document

    • D. 

      Another name for a trial balance

  • 4. 
    To "open the ledger", which two steps must you do?
    • A. 

      Put a name on each T account and enter their opening balances

    • B. 

      Enter the transactions into the T accounts and calculate their final balances

    • C. 

      Enter the opening balances and transactions into the T accounts

    • D. 

      Enter the opening and closing balances into the T accounts

  • 5. 
    Which 2 types of accounts have the same debit and credit rules, meaning they increase and decrease on the same sides as each other?
    • A. 

      Assets and liabilities

    • B. 

      Liabilities & owner's equity

    • C. 

      Assets and owner's equity

    • D. 

      Assets & revenue

  • 6. 
    Which of the following accounts would increase with a debit and decrease with a credit?
    • A. 

      Cash

    • B. 

      Bank Loan

    • C. 

      Capital

    • D. 

      All of the above

  • 7. 
    If a company takes out a bank loan, which accounts are affected and how?
    • A. 

      Debit cash, credit bank loan

    • B. 

      Debit bank loan, credit cash

    • C. 

      Debit cash, credit accounts payable

    • D. 

      Debit bank loan, credit capital

  • 8. 
    If a customer pays you the $300 she owes you, but you INCORRECTLY debited cash and debited accounts receivable for $300 each, how would your trial balance totals be affected?
    • A. 

      Total debits would be $300 too high; total credits would be correct.

    • B. 

      Total debits would be $600 too high; total credits would be correct.

    • C. 

      Total debits would be correct; total credits would be $300 too low.

    • D. 

      Total debits would be correct; total credits would be $600 too low.

  • 9. 
    What is a trial balance?
    • A. 

      The same as a balance sheet

    • B. 

      A way to know you did everything correctly

    • C. 

      The check column on the side of the transaction analysis sheet

    • D. 

      A list of all accounts from the ledger with their balances

  • 10. 
    Which of the following mistakes would be detected by a trial balance?
    • A. 

      You forgot to enter an entire transaction into the T accounts.

    • B. 

      You collected cash from a customer. You recorded it as debit accounts receivable $200, credit cash $200.

    • C. 

      You paid a supplier what you owed. You recorded it as debit accounts payable $150, debit cash $250.

    • D. 

      The owner invested $1,000 in the business. You recorded as $100 in each of the two affected accounts.