18 Questions
Which side of the accounting equation do assets belong to?
Left side
In double-entry bookkeeping, which account type increases with a debit entry?
Expense
If a business issues an official receipt, which account is most likely to be affected?
Asset
Which document is used to evidence a sale where goods are sold on credit?
Sales invoice
When a business records an increase in equity, which side is affected and how?
Left side with a credit entry
Which type of account is contra to an asset account?
Contra asset account
In double-entry bookkeeping, where is the account to be debited typically entered?
Slightly indented on the first line of the chart of accounts
When preparing journal vouchers for year-end adjustments, what type of transactions are they usually associated with?
Transactions with significant errors
What is the purpose of a posting reference (P.R.) column in a ledger?
To mark entries that have been posted
Where are the debit amounts for each account typically recorded in a ledger?
In the Debit column
When is a Check Voucher typically used?
For authorization of cash disbursement transactions
In bookkeeping, where is the account to be credited usually entered?
Slightly indented on the next line after the account to be debited
In double-entry bookkeeping, what is the relationship between debits and credits?
Debits and credits must always be equal in a transaction.
How are increases in income usually recorded in accounting?
As credits
Which of the following has a normal credit balance in the accounting system?
Liabilities
What is the purpose of contra accounts in accounting?
To reduce the balances of related accounts
When recording an expense, which entry is made according to the rules of debit and credit?
Debit entry
What is the fundamental principle behind double-entry bookkeeping?
For every value received, there is a corresponding value parted with.
Test your knowledge of accounting source documents and their corresponding account entries with this quiz. Identify which type of document is associated with each transaction and whether it results in an increase or decrease in specific accounts.
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