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Quizzes > Business & Finance

Journal Entry Quiz: Practice Questions to Build Accounting Skills

Quick quiz on journal entry questions with instant feedback and score tracking.

Editorial: Review CompletedCreated By: Rae-A MoughtyUpdated Aug 28, 2025
Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art ledger notebook pencil and score chart icons on golden yellow background for free journal entry accounting quiz

This journal entry quiz helps you practice core entries, apply debits and credits, and catch common errors fast. Keep building with journal entry practice, sharpen basics in the debit and credit quiz, and reinforce concepts in our double entry test before an exam or interview.

Which accounts are debited and credited to record the cash purchase of equipment for use in operations?
Debit Cash; Credit Equipment
Debit Equipment; Credit Cash (correct)
Debit Expense; Credit Cash
Debit Supplies; Credit Cash
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A customer pays cash on the day of sale for services rendered. What is the correct journal entry?
Debit Accounts Receivable; Credit Service Revenue
Debit Cash; Credit Service Revenue (correct)
Debit Unearned Revenue; Credit Cash
Debit Service Revenue; Credit Cash
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You purchase office supplies on account. Which entry records this?
Debit Supplies Expense; Credit Cash
Debit Supplies; Credit Accounts Payable (correct)
Debit Accounts Payable; Credit Supplies
Debit Cash; Credit Supplies
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You pay the current month's rent in cash. What is the entry?
Debit Rent Expense; Credit Cash (correct)
Debit Prepaid Rent; Credit Cash
Debit Cash; Credit Rent Expense
Debit Rent Payable; Credit Cash
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Collecting cash on an accounts receivable balance is recorded as:
Debit Cash; Credit Accounts Receivable (correct)
Debit Accounts Receivable; Credit Cash
Debit Cash; Credit Service Revenue
Debit Unearned Revenue; Credit Cash
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To write off an uncollectible account under the allowance method, which entry is correct?
Debit Cash; Credit Allowance for Doubtful Accounts
Debit Allowance for Doubtful Accounts; Credit Accounts Receivable (correct)
Debit Accounts Receivable; Credit Allowance for Doubtful Accounts
Debit Bad Debt Expense; Credit Accounts Receivable
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Recording bad debt expense at period-end under the allowance method uses which entry?
Debit Accounts Receivable; Credit Bad Debt Expense
Debit Bad Debt Expense; Credit Accounts Receivable
Debit Allowance for Doubtful Accounts; Credit Bad Debt Expense
Debit Bad Debt Expense; Credit Allowance for Doubtful Accounts (correct)
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You issue common stock for cash at par value. What is the journal entry?
Debit Cash; Credit Additional Paid-In Capital
Debit Cash; Credit Common Stock (correct)
Debit Retained Earnings; Credit Cash
Debit Common Stock; Credit Cash
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You declare a cash dividend to shareholders, payable next month. Which entry is correct?
Debit Cash; Credit Retained Earnings
Debit Dividends Expense; Credit Cash
Debit Dividends Payable; Credit Cash
Debit Retained Earnings (or Dividends Declared); Credit Dividends Payable (correct)
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Recognizing revenue previously recorded as unearned when the service is performed requires:
Debit Unearned Revenue; Credit Service Revenue (correct)
Debit Accounts Receivable; Credit Service Revenue
Debit Service Revenue; Credit Unearned Revenue
Debit Cash; Credit Service Revenue
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Upon payment within the discount period under the gross method for inventory purchases, what discount entry is recorded?
Debit Accounts Payable; Credit Purchase Discounts
Debit Inventory; Credit Cash
Debit Cash; Credit Inventory (discount)
Debit Accounts Payable (full); Credit Cash (net of discount); Credit Inventory (discount) (correct)
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Which entry records the disposal of equipment for cash proceeds greater than its carrying amount?
Debit Cash; Debit Accumulated Depreciation; Credit Equipment; Credit Gain on Disposal (correct)
Debit Cash; Credit Equipment; Debit Loss on Disposal
Debit Accumulated Depreciation; Debit Loss on Disposal; Credit Equipment
Debit Equipment; Credit Cash; Credit Gain on Disposal
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Recognizing warranty expense under an accrual estimate requires which entry?
Debit Warranty Expense; Credit Cash
Debit Repairs Expense; Credit Cash
Debit Warranty Expense; Credit Warranty Liability (correct)
Debit Warranty Liability; Credit Warranty Expense
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True or False: When writing off an account using the allowance method, total assets decrease at the write-off date.
True
False
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You record a sales return for goods previously sold on credit under perpetual inventory. Which entries are needed?
Debit Sales Returns and Allowances; Credit Accounts Receivable AND Debit Inventory; Credit Cost of Goods Sold (correct)
Debit Sales Revenue; Credit Accounts Receivable AND Debit Inventory; Credit Sales Revenue
Debit Accounts Receivable; Credit Sales Returns AND Debit Cost of Goods Sold; Credit Inventory
Debit Inventory; Credit Sales Returns AND Debit Cash; Credit Cost of Goods Sold
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To adjust inventory at period-end under the periodic system, which entry includes cost of goods sold?
Debit Purchases; Credit Cost of Goods Sold
Debit Inventory; Credit Cost of Goods Sold
Debit Cost of Goods Sold; Debit Ending Inventory; Credit Purchases; Credit Freight-in; Credit Beginning Inventory (close/adjust) (correct)
Debit Sales; Credit Inventory
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You capitalize interest on a self-constructed asset. What adjusting entry records the capitalization?
Debit Interest Expense; Credit Construction in Progress
Debit Construction in Progress; Credit Interest Capitalized (or Interest Expense) (correct)
Debit Asset; Credit Interest Payable
Debit Interest Receivable; Credit Construction in Progress
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For an operating lease under ASC 842, using a simplified single-lease-cost approach that records only the cash payment each period (ignoring the noncash amortization/accretion entries), which entry is recorded after initial recognition?
Debit Lease Expense; Credit Cash (single lease cost approach for operating lease)
Debit Lease Liability; Credit Lease Expense
Debit Depreciation Expense; Credit Lease Liability
Debit Right-of-Use Asset; Credit Lease Expense
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For a finance lease payment by the lessee, which entries are recognized each period?
Debit Lease Liability; Credit Amortization Expense
Debit Lease Expense; Credit Cash only
Debit Right-of-Use Asset; Credit Cash; Credit Interest Expense
Debit Interest Expense; Debit Lease Liability; Credit Cash AND Debit Amortization Expense; Credit Right-of-Use Asset (correct)
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When establishing an allowance for sales returns at period-end, which entry is appropriate?
Debit Sales Returns and Allowances (or Contra-Revenue); Credit Refund Liability (and Debit Asset for Right to Recover Inventory; Credit COGS) (correct)
Debit Refund Liability; Credit Sales Revenue
Debit Sales Revenue; Credit Accounts Receivable
Debit Inventory; Credit Sales Returns and Allowances
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Study Outcomes

  1. Apply Journalizing Principles -

    Master the rules of debits and credits to accurately record various business transactions, reinforcing your fundamental journal entry practice skills.

  2. Analyze Transaction Scenarios -

    Identify the correct accounts and amounts in realistic business scenarios to confidently tackle diverse journal entry questions.

  3. Construct Accurate Journal Entries -

    Employ best practices in journalizing in accounting to prepare error-free practice accounting entries for different transaction types.

  4. Evaluate and Correct Entries -

    Detect common errors in sample journal entries questions and implement corrections to enhance your accuracy and understanding.

  5. Interpret Quiz Feedback -

    Track your quiz score and performance metrics to pinpoint strengths and weaknesses in journal entry practice.

  6. Build Accounting Confidence -

    Gain proficiency through engaging journal entry questions and practice accounting entries, preparing you for real-world financial recording tasks.

Cheat Sheet

  1. Fundamentals of Debits and Credits -

    Every journal entry practice begins with understanding debits and credits, the core of journalizing in accounting. Remember that debits increase assets and expenses, while credits increase liabilities, equity, and revenue. For example, when you receive cash for services rendered, you debit Cash and credit Service Revenue.

  2. Master the Accounting Equation -

    The equation Assets = Liabilities + Equity ensures all journal entries questions stay balanced. When you journalize a transaction, verify the total debits equal total credits to maintain this equilibrium. A handy check is re-balancing after each entry to avoid misstatements.

  3. Distinguish Accruals from Cash Transactions -

    Accrual basis accounting requires adjusting entries for revenues earned or expenses incurred but not yet recorded. Practice making accrual adjustments like debiting Accounts Receivable and crediting Service Revenue at period-end. This sharpens skills for more advanced journal entry questions.

  4. Utilize T-Accounts for Visualization -

    T-accounts provide a visual aid to track changes in each account and ensure journal entries balance. Draw a "T" for each account, post debits on the left and credits on the right, then summarize totals. This hands-on method reinforces correct account classification in practice accounting entries.

  5. Use the DEAD CLIC Mnemonic -

    Memorize "DEAD CLIC" to recall that Debits increase Expenses, Assets, Drawings, and Credits increase Liabilities, Income, Capital. This mnemonic makes it easier to answer journal entry questions under exam conditions. Testing yourself with flashcards or quick quizzes can embed this rule.

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