Key Concepts in Double Entry Accounting System UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

Key Concepts in Double Entry Accounting
System UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Double Entry Accounting System - Correct answers✔✔one debit one credit, two accounting
always affected.



Journal entries for owner investment - Correct answers✔✔Debit cash, Credit: owner capital



General Journal Definition - Correct answers✔✔Collection of all journal entries for the
accounting period.



Accrued revenue - Correct answers✔✔Know the Journal entry to record revenue earned but not
yet paid: Debit: account receivable (since they owed money), Credit: Revenue (to show revenue
is earned)



Accounts with normal debit balance - Correct answers✔✔ADE Assets, Drawing, Expenses



Journal entry for owner withdrawals - Correct answers✔✔Debit: owner's Withdrawals, credit:
Cash



Journal entry for prepaid expenses - Correct answers✔✔Debit: Prepaid expenses, Credit: cash or
accounts payable if on credit



Accounts with normal credit balance - Correct answers✔✔LCR liabilities, capital, revenue