Credit and Debit Quiz

1. A business is started with the injection of 10,000 in cash. In which account is the
credit entry made?
Cash
Capital
2. A business purchases equipment cash. In which account is the debit entry made?
Equipment
Supplies
3.Insurance of 2,000 is paid in advance. In which account is the debit entry made?
Insurance prepayments
Insurance expense

4. A business purchases supplies on account for 2,000. On which account is the credit
entry made?
Supplies
Accounts payable
5. A business collects fees from a customer in cash for work done. In which account is
the credit entry made?
Accounts Receivable
Fee Income
6. A business owner withdraws cash of 1,000 from the business. In which account is
the debit entry made?
Drawings account
Cash
7. Net wages of 24,000 are paid to employees. Which account is debited?
Cash
Net wages control
8. A business invoices customers for fees, giving credit of 30 days. Which account is
the debit entry posted to?
Accounts receivable
Accounts payable
9. A telephone bill is received by the business for 500. Which account is the debit
entry posted to?
Telephone expense
Accounts payable
Fee income