NYC BOOKKEEPER EXAM – QUESTIONS
AND ANSWERS | VERIFIED AND WELL
DETAILED ANSWERS | PLUS RATIONALES
| GUARANTEED PASS | LATEST EXAM
UPDATE
1. A bookkeeper records a $2,500 cash payment received from a customer for
services previously billed on account. What is the correct accounting entry?
• A. Debit Cash; Credit Accounts Receivable
• B. Debit Accounts Receivable; Credit Cash
• C. Debit Revenue; Credit Cash
• D. Debit Cash; Credit Revenue
Correct ,,,,answer,,,,: A
Rationale: Cash increases (asset) so it is debited, and Accounts Receivable
decreases so it is credited, reflecting payment received.
2. A company purchases office supplies for $600 cash. What is the correct
entry?
• A. Debit Cash; Credit Supplies
• B. Debit Supplies Expense; Credit Cash
• C. Debit Supplies; Credit Cash
• D. Debit Cash; Credit Accounts Payable
Correct ,,,,answer,,,,: C
,Rationale: Supplies (asset) increase, so they are debited, and cash decreases so it
is credited.
3. A company buys equipment on credit. What is the correct entry?
• A. Debit Equipment; Credit Cash
• B. Debit Equipment; Credit Accounts Payable
• C. Debit Cash; Credit Equipment
• D. Debit Accounts Payable; Credit Equipment
Correct ,,,,answer,,,,: B
Rationale: Equipment increases (debit), and liability (Accounts Payable) increases
(credit).
4. A company performs services for a client and bills the client $1,500. What is
the correct entry?
• A. Debit Cash; Credit Service Revenue
• B. Debit Accounts Receivable; Credit Service Revenue
• C. Debit Service Revenue; Credit Accounts Receivable
• D. Debit Cash; Credit Accounts Receivable
Correct ,,,,answer,,,,: B
Rationale: Services performed on account increase Accounts Receivable (debit)
and increase Service Revenue (credit).
5. A company pays $1,200 for rent for the current month. What is the correct
entry?
• A. Debit Rent Expense; Credit Cash
• B. Debit Prepaid Rent; Credit Cash
• C. Debit Cash; Credit Rent Expense
• D. Debit Rent Expense; Credit Accounts Payable
,Correct ,,,,answer,,,,: A
Rationale: Rent Expense increases (debit) and Cash decreases (credit) for the
current month's rent.
6. A company receives a $5,000 advance payment from a customer for services
to be performed next month. What is the correct entry?
• A. Debit Cash; Credit Service Revenue
• B. Debit Cash; Credit Unearned Revenue
• C. Debit Unearned Revenue; Credit Cash
• D. Debit Accounts Receivable; Credit Service Revenue
Correct ,,,,answer,,,,: B
Rationale: Cash increases (debit) and Unearned Revenue (liability) increases
(credit) because the services have not yet been performed.
7. A company pays $3,000 toward an outstanding accounts payable balance.
What is the correct entry?
• A. Debit Cash; Credit Accounts Payable
• B. Debit Accounts Payable; Credit Cash
• C. Debit Accounts Receivable; Credit Cash
• D. Debit Cash; Credit Accounts Receivable
Correct ,,,,answer,,,,: B
Rationale: Accounts Payable decreases (debit) and Cash decreases (credit) when a
payment is made toward a liability.
8. A company borrows $10,000 from a bank, signing a 6-month note. What is
the correct entry?
• A. Debit Cash; Credit Notes Payable
, • B. Debit Notes Payable; Credit Cash
• C. Debit Cash; Credit Accounts Payable
• D. Debit Cash; Credit Interest Payable
Correct ,,,,answer,,,,: A
Rationale: Cash increases (debit) and Notes Payable (liability) increases (credit).
9. A company records depreciation on equipment of $500. What is the correct
entry?
• A. Debit Equipment; Credit Cash
• B. Debit Depreciation Expense; Credit Accumulated Depreciation
• C. Debit Accumulated Depreciation; Credit Depreciation Expense
• D. Debit Equipment; Credit Depreciation Expense
Correct ,,,,answer,,,,: B
Rationale: Depreciation Expense increases (debit) and Accumulated Depreciation
(contra-asset) increases (credit).
10. A company declares and pays dividends of $2,000. What is the correct
entry?
• A. Debit Dividends; Credit Cash
• B. Debit Cash; Credit Dividends
• C. Debit Retained Earnings; Credit Dividends Payable
• D. Debit Dividends Payable; Credit Cash
Correct ,,,,answer,,,,: A
Rationale: Dividends (equity decrease) increases (debit) and Cash decreases
(credit).
AND ANSWERS | VERIFIED AND WELL
DETAILED ANSWERS | PLUS RATIONALES
| GUARANTEED PASS | LATEST EXAM
UPDATE
1. A bookkeeper records a $2,500 cash payment received from a customer for
services previously billed on account. What is the correct accounting entry?
• A. Debit Cash; Credit Accounts Receivable
• B. Debit Accounts Receivable; Credit Cash
• C. Debit Revenue; Credit Cash
• D. Debit Cash; Credit Revenue
Correct ,,,,answer,,,,: A
Rationale: Cash increases (asset) so it is debited, and Accounts Receivable
decreases so it is credited, reflecting payment received.
2. A company purchases office supplies for $600 cash. What is the correct
entry?
• A. Debit Cash; Credit Supplies
• B. Debit Supplies Expense; Credit Cash
• C. Debit Supplies; Credit Cash
• D. Debit Cash; Credit Accounts Payable
Correct ,,,,answer,,,,: C
,Rationale: Supplies (asset) increase, so they are debited, and cash decreases so it
is credited.
3. A company buys equipment on credit. What is the correct entry?
• A. Debit Equipment; Credit Cash
• B. Debit Equipment; Credit Accounts Payable
• C. Debit Cash; Credit Equipment
• D. Debit Accounts Payable; Credit Equipment
Correct ,,,,answer,,,,: B
Rationale: Equipment increases (debit), and liability (Accounts Payable) increases
(credit).
4. A company performs services for a client and bills the client $1,500. What is
the correct entry?
• A. Debit Cash; Credit Service Revenue
• B. Debit Accounts Receivable; Credit Service Revenue
• C. Debit Service Revenue; Credit Accounts Receivable
• D. Debit Cash; Credit Accounts Receivable
Correct ,,,,answer,,,,: B
Rationale: Services performed on account increase Accounts Receivable (debit)
and increase Service Revenue (credit).
5. A company pays $1,200 for rent for the current month. What is the correct
entry?
• A. Debit Rent Expense; Credit Cash
• B. Debit Prepaid Rent; Credit Cash
• C. Debit Cash; Credit Rent Expense
• D. Debit Rent Expense; Credit Accounts Payable
,Correct ,,,,answer,,,,: A
Rationale: Rent Expense increases (debit) and Cash decreases (credit) for the
current month's rent.
6. A company receives a $5,000 advance payment from a customer for services
to be performed next month. What is the correct entry?
• A. Debit Cash; Credit Service Revenue
• B. Debit Cash; Credit Unearned Revenue
• C. Debit Unearned Revenue; Credit Cash
• D. Debit Accounts Receivable; Credit Service Revenue
Correct ,,,,answer,,,,: B
Rationale: Cash increases (debit) and Unearned Revenue (liability) increases
(credit) because the services have not yet been performed.
7. A company pays $3,000 toward an outstanding accounts payable balance.
What is the correct entry?
• A. Debit Cash; Credit Accounts Payable
• B. Debit Accounts Payable; Credit Cash
• C. Debit Accounts Receivable; Credit Cash
• D. Debit Cash; Credit Accounts Receivable
Correct ,,,,answer,,,,: B
Rationale: Accounts Payable decreases (debit) and Cash decreases (credit) when a
payment is made toward a liability.
8. A company borrows $10,000 from a bank, signing a 6-month note. What is
the correct entry?
• A. Debit Cash; Credit Notes Payable
, • B. Debit Notes Payable; Credit Cash
• C. Debit Cash; Credit Accounts Payable
• D. Debit Cash; Credit Interest Payable
Correct ,,,,answer,,,,: A
Rationale: Cash increases (debit) and Notes Payable (liability) increases (credit).
9. A company records depreciation on equipment of $500. What is the correct
entry?
• A. Debit Equipment; Credit Cash
• B. Debit Depreciation Expense; Credit Accumulated Depreciation
• C. Debit Accumulated Depreciation; Credit Depreciation Expense
• D. Debit Equipment; Credit Depreciation Expense
Correct ,,,,answer,,,,: B
Rationale: Depreciation Expense increases (debit) and Accumulated Depreciation
(contra-asset) increases (credit).
10. A company declares and pays dividends of $2,000. What is the correct
entry?
• A. Debit Dividends; Credit Cash
• B. Debit Cash; Credit Dividends
• C. Debit Retained Earnings; Credit Dividends Payable
• D. Debit Dividends Payable; Credit Cash
Correct ,,,,answer,,,,: A
Rationale: Dividends (equity decrease) increases (debit) and Cash decreases
(credit).
