Business & Marketing

Journal Entry Quiz: Practice Questions to Build Accounting Skills

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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.

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1Which accounts are debited and credited to record the cash purchase of equipment for use in operations?
2A customer pays cash on the day of sale for services rendered. What is the correct journal entry?
3You purchase office supplies on account. Which entry records this?
4You pay the current month's rent in cash. What is the entry?
5Collecting cash on an accounts receivable balance is recorded as:
6To write off an uncollectible account under the allowance method, which entry is correct?
7Recording bad debt expense at period-end under the allowance method uses which entry?
8You issue common stock for cash at par value. What is the journal entry?
9You declare a cash dividend to shareholders, payable next month. Which entry is correct?
10Recognizing revenue previously recorded as unearned when the service is performed requires:
11Upon payment within the discount period under the gross method for inventory purchases, what discount entry is recorded?
12Which entry records the disposal of equipment for cash proceeds greater than its carrying amount?
13Recognizing warranty expense under an accrual estimate requires which entry?
14True or False: When writing off an account using the allowance method, total assets decrease at the write-off date.
15You record a sales return for goods previously sold on credit under perpetual inventory. Which entries are needed?
16To adjust inventory at period-end under the periodic system, which entry includes cost of goods sold?
17You capitalize interest on a self-constructed asset. What adjusting entry records the capitalization?
18For 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?
19For a finance lease payment by the lessee, which entries are recognized each period?
20When establishing an allowance for sales returns at period-end, which entry is appropriate?
Learning Goals

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.

Study Guide

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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Updated Feb 18, 2026