CPB / BookKeeping Double Entry Bookkeeping 2

Question 1

A company purchases office supplies worth $500 on account. Which accounts are affected?

Accepted Answer

Debit Office Supplies, Credit Accounts Payable

Answer

Debit Office Supplies, Credit Cash

Answer

Debit Accounts Payable, Credit Office Supplies

Answer

Debit Cash, Credit Office Supplies

Question 2

What is the accounting equation that underpins double entry bookkeeping?

Accepted Answer

Assets = Liabilities + Owner's Equity

Answer

Assets = Liabilities + Revenue

Answer

Assets + Equity = Liabilities

Answer

Revenue - Expenses = Assets

Question 3

When a customer pays $1,200 in advance for services to be rendered next month, the bookkeeper should:

Accepted Answer

Debit Cash, Credit Unearned Revenue

Answer

Debit Cash, Credit Service Revenue

Answer

Debit Unearned Revenue, Credit Cash

Answer

Debit Accounts Receivable, Credit Revenue

Question 4

Which entry correctly records the payment of a $2,000 liability that was previously recorded?

Accepted Answer

Debit Accounts Payable $2,000, Credit Cash $2,000

Answer

Debit Cash $2,000, Credit Accounts Payable $2,000

Answer

Debit Expense $2,000, Credit Cash $2,000

Answer

Debit Accounts Payable $2,000, Credit Revenue $2,000

Question 5

A firm earns $3,500 in consulting fees and immediately collects cash. The correct entry is:

Accepted Answer

Debit Cash $3,500, Credit Consulting Revenue $3,500

Answer

Debit Revenue $3,500, Credit Cash $3,500

Answer

Debit Accounts Receivable $3,500, Credit Revenue $3,500

Answer

Debit Cash $3,500, Credit Accounts Payable $3,500

Question 6

The left side of a T-account is always the:

Accepted Answer

Debit side

Answer

Credit side

Answer

Balance side

Answer

Liability side

Question 7

If total debits in a trial balance equal $85,000, what must total credits equal?

Accepted Answer

$85,000

Answer

$42,500

Answer

$170,000

Answer

It depends on the number of accounts