Double Entry Bookkeeping Flashcards
7 cards from real CPB / BookKeeping practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Double Entry Bookkeeping flashcards as text
An owner withdraws $1,000 cash for personal use. How is this recorded?
Answer: Debit Drawing $1,000, Credit Cash $1,000
Owner withdrawals are recorded as a debit to the Drawing (or Withdrawal) account and a credit to Cash.
Which of the following is a contra account that normally carries a credit balance?
Answer: Accumulated Depreciation
Accumulated Depreciation is a contra asset account that carries a credit balance, offsetting the related asset's debit balance.
A $400 utility bill is received but not yet paid. The adjusting entry is:
Answer: Debit Utilities Expense, Credit Utilities Payable
An accrued expense is recorded by debiting the expense and crediting the corresponding payable liability.
Which double entry is made when a business sells goods on credit for $750?
Answer: Debit Accounts Receivable $750, Credit Sales Revenue $750
A credit sale increases Accounts Receivable (debit) and increases Sales Revenue (credit).
Depreciation expense of $600 is recorded for the year. The credit is made to:
Answer: Accumulated Depreciation
Depreciation is recorded by debiting Depreciation Expense and crediting Accumulated Depreciation, not the asset account itself.
What happens to the equity section of the balance sheet when a net loss is recorded?
Answer: Equity decreases
A net loss reduces retained earnings (or owner's equity), decreasing the equity section of the balance sheet.
Which pair of accounts is affected when prepaid insurance of $1,200 expires after one month ($100)?
Answer: Insurance Expense and Prepaid Insurance
As prepaid insurance expires, Insurance Expense is debited and Prepaid Insurance is credited to recognize the cost used.