Bookkeeping Certification — Practice Exam
Journal entries: practice questions
Our Bookkeeping bank has 10 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.
Question 1
What is the entry to pay a $300 supplier invoice previously recorded?
- Debit Expense; credit Cash
- Debit Accounts Payable $300; credit Supplies Expense $300 for the invoice
- Debit Accounts Payable $300; credit Cash $300
- Debit Cash; credit Accounts Payable
Show the answer
C. Debit Accounts Payable $300; credit Cash $300 — The liability decreases.
Question 2
A business receives $1,200 in advance for 12 months of service. What is the entry on receipt?
- Debit Cash $1,200; credit Unearned Revenue $1,200
- Debit Unearned Revenue; credit Cash
- Debit Accounts Receivable $1,200; credit Service Revenue $1,200 for the year
- Debit Cash; credit Service Revenue $1,200
Show the answer
A. Debit Cash $1,200; credit Unearned Revenue $1,200 — Revenue is recognised as the service is performed.
Question 3
A customer pays $1,000 they owed. What is the entry?
- Debit Sales; credit Cash
- Debit Accounts Receivable $1,000; credit Cash $1,000 for the payment
- Debit Cash $1,000; credit Accounts Receivable $1,000
- Debit Cash; credit Sales
Show the answer
C. Debit Cash $1,000; credit Accounts Receivable $1,000 — Collection doesn't create new revenue.