CPB / BookKeeping Bookkeeping Journal 5

Question 1

A company sells goods worth $800 and collects $300 cash while the rest is on account. The journal entry includes:

Accepted Answer

Debit Cash $300; Debit Accounts Receivable $500; Credit Sales Revenue $800

Answer

A partial cash, partial credit sale is a compound entry: cash received goes to Cash, the remainder to Accounts Receivable, and total to Sales Revenue.

Question 2

Which principle requires that expenses be recorded in the same period as the revenues they helped generate?

Accepted Answer

Matching principle

Answer

The matching principle requires expenses to be recorded in the same accounting period as the revenues they helped produce.

Question 3

An accrued expense journal entry at period-end typically includes:

Accepted Answer

A debit to an expense account and a credit to a payable account

Answer

Accrued expenses are costs incurred but not yet paid, recorded by debiting the expense and crediting the corresponding payable liability.

Question 4

If rent of $1,500 is paid in advance for three months, what is the initial journal entry?

Accepted Answer

Debit Prepaid Rent $1,500; Credit Cash $1,500

Answer

Paying rent in advance creates an asset (Prepaid Rent) because the benefit has not yet been used, reducing cash.

Question 5

Which of the following is NOT a component of a journal entry?

Accepted Answer

Account balance after posting

Answer

The account balance after posting belongs in the ledger, not the journal; journal entries contain the date, account names, and debit/credit amounts.

CPB / BookKeeping Practice Test

CPB / BookKeeping Practice Test

CPB / BookKeeping Bookkeeping Journal 5