Accounts Classification: Debit And Credit Quiz!
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Stationery
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Dr
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Cr
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What do you know about account classification? In accounting, the accounts are categorized using one of the two approaches, including a modern or traditional approach. There are five key types of accounts, including assets, liabilities, equity, revenue, and expenses. The debit and credit record your expenditures and income. The goal is to clarify how your company’s money is spent or received. If you want to put your knowledge to the test, this is the quiz for you.
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- 2.
Equipment
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Dr
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Cr
Correct Answer
A. DrExplanation
Owned by business for long-term use.Rate this question:
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- 3.
Motor Vehicles
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Dr
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Cr
Correct Answer
A. DrExplanation
Owned by business for long-term use.Rate this question:
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- 4.
Inventory
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Dr
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Cr
Correct Answer
A. DrExplanation
Goods bought for resale by the business.Rate this question:
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- 5.
Cash in hand
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Dr
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Cr
Correct Answer
A. DrExplanation
Physical cash is something that the business ownsRate this question:
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- 6.
Cash at bank
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Dr
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Cr
Correct Answer
A. DrExplanation
Money kept in the bank account is owned by the business.Rate this question:
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- 7.
Salaries
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Dr
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Cr
Correct Answer
A. DrExplanation
Payments (of $) to be made to workers in the business.Rate this question:
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- 8.
Trade payables
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Dr
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Cr
Correct Answer
A. CrExplanation
Owings by the business to the supplier. Business will pay supplier in future.Rate this question:
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- 9.
Trade receivable
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Dr
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Cr
Correct Answer
A. DrExplanation
Owings by customers to the business. Business will receive $ from customers in future.Rate this question:
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- 10.
Rent
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Dr
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Cr
Correct Answer
A. DrExplanation
Recurring payments for renting (using) a place.Rate this question:
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- 11.
Sales revenue
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Dr
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Cr
Correct Answer
A. CrExplanation
Selling price of the goods sold to customers.Rate this question:
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- 12.
Commission revenue
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Dr
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Cr
Correct Answer
A. CrExplanation
The given correct answer "Cr" suggests that commission revenue is a credit entry. In accounting, revenue accounts are typically credited when they increase. Commission revenue represents the income earned by a business from commissions, which are fees received for facilitating a sale or transaction. Therefore, when commission revenue is recorded, it is credited to reflect the increase in income.Rate this question:
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- 13.
Capital
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Dr
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Cr
Correct Answer
A. CrExplanation
The given answer "Cr" is an abbreviation for "Credit". In accounting, "Credit" refers to an entry on the right side of a ledger account, indicating a decrease in assets or an increase in liabilities or equity. The "Cr" notation is commonly used to represent credit entries in financial transactions.Rate this question:
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- 14.
Interest income
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Dr
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Cr
Correct Answer
A. CrExplanation
Earnings calculated as a percentage of money kept in the bank.Rate this question:
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- 15.
Drawings
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Dr
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Cr
Correct Answer
A. DrExplanation
The given answer "Dr" is most likely an abbreviation for "Debit". In accounting, "Dr" represents the left side of a journal entry, indicating an increase in assets or a decrease in liabilities or equity. This is the opposite of "Cr" which stands for "Credit", representing the right side of a journal entry, indicating a decrease in assets or an increase in liabilities or equity. Without further context or information, it is difficult to provide a more specific explanation.Rate this question:
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- 16.
Cost of sales
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Dr
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Cr
Correct Answer
A. DrExplanation
Cost price of the goods sold. Recorded only when the business sells the goods.Rate this question:
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- 17.
Sales Returns
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Dr
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Cr
Correct Answer
A. Dr -
- 18.
Discounts allowed
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Dr
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Cr
Correct Answer
A. DrExplanation
Given to credit customer (debtor/trade receivables) by business to encourage early payment of cash. Given at the point of payment.Rate this question:
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- 19.
Discounts received
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Dr
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Cr
Correct Answer
A. CrExplanation
Given by credit supplier (creditor/trade payables) to business to encourage early payment of cash. Given at the point of payment.Rate this question:
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- 20.
Loss on sale of equipment
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Dr
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Cr
Correct Answer
A. DrExplanation
The given correct answer is "Dr" because when a company sells equipment, it usually results in a loss. The loss on the sale of equipment is recorded as a debit (Dr) in the accounting books to reflect the decrease in the company's assets. This loss is typically recognized when the sale price of the equipment is lower than its book value or carrying amount. By debiting the loss on sale of equipment, the company acknowledges the reduction in its financial position due to the sale.Rate this question:
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Quiz Review Timeline (Updated): Mar 22, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 22, 2023Quiz Edited by
ProProfs Editorial Team -
May 26, 2016Quiz Created by
Arshad.b.jumah
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