ACC 101 – Debits and Credits Quiz | Core Principles of Double-Entry Accounting

Quiz 3: Debits and Credits
1. When an asset account goes up, it is reported by an:
A) Debit
B) Credit
C) Expense
D) Revenue
2. In double-entry accounting, every debit entry must have a corresponding:
A) Debit
B) Credit
C) Expense
D) Asset
3. What account is generally recorded with an excess of credit balances?
A) Assets
B) Expenses
C) Revenues
D) Drawings
4. Making a record of a liability payment will:
A) Debit liability is incurred while credit cash is received
B) For Assets, increase cash and increase Liabilities
C) When recording revenue, use a debit and credit purchase.
D) Debit cash and credit equity
5. When a company gets cash from a customer in advance for services that will be
performed later which account is affected?
A) Cash
B) Unearned Revenue
C) Accounts Receivable.
D) Sales through Service
6. What happens to a business when the owner’s equity account is credited?
A) Increase equal chances for the business.
B) Reduce the equity of the business
C)Increase the assets of the company
D) Decrease the money owed by the company