INSTITUTE OF THE ORIENT, INC.

PLACER, MASBATE
FUNDAMENTALS of ACCOUNTANCY, BUSINESS and MANAGEMENT
Quiz

NAME:___________________________________________
GRADE & SECTION_________________

a) Accounts Receivable (debit); Sales Revenue

TEST I: Encircle the correct answer of (credit)
the following questions. Strictly,
b) Sales Revenue (debit); Accounts Receivable
erasure means wrong!
(credit)
c) Cash (debit); Sales Revenue (credit)
1. In a merchandising business, sales revenue is
d) Sales Returns and Allowances (debit);
typically recorded as a credit to which account?
Accounts Receivable (credit)
a) Sales Revenue b) Accounts Receivable
12. Which account is debited when a discount is
c) Cash d) Inventory
offered to a customer for prompt payment?
2. When recording a sale of merchandise on
a) Sales Discounts b) Cash
credit, which account is credited?
c) Accounts Receivable d) Sales Revenue
a) Cash b) Inventory
13. What account is credited when a customer
c) Accounts Payable d) Sales Revenue
takes advantage of a sales discount?
3. Which account is debited when merchandise is
a) Sales Revenue b) Accounts Receivable
purchased on credit?
c) Sales Discounts d) Cash
a) Inventory b) Accounts Payable
14. Which account is debited when a customer fails
c) Cash d) Sales Revenue
to pay their account receivable, and the
4. When merchandise is returned by a customer,
company writes off the debt as uncollectible?
which account is debited?
a) Allowance for Doubtful Accounts
a) Sales Returns and Allowances
b) Bad Debt Expense
b) Sales Revenue
c) Accounts Receivable
c) Accounts Receivable
d) Cash
d) Inventory
15. What is the journal entry to record a sales
5. Which account is credited when a customer
return by a customer?
returns merchandise purchased on credit?
a) Sales Returns and Allowances (debit); Cash
a) Inventory b) Accounts Receivable
(credit)
c) Sales Returns and Allowances d) Cash
b) Accounts Receivable (debit); Sales Revenue
6. What type of account is the Purchases account?
(credit)
a) Asset b) Liability c) Revenue d) Expense
c) Cash (debit); Sales Returns and Allowances
7. When recording the purchase of merchandise
(credit)
for cash, which account is debited?
d) Sales Revenue (debit); Accounts Receivable
a) Cash b) Accounts Payable
(credit)
c) Purchases d) Inventory
8. What is the journal entry to record the
TEST II: Determine the correct journal
payment of freight costs on merchandise entry for each transaction:
purchased?
a) Freight-In (debit); Cash (credit) 1. Sold merchandise for cash.
b) Cash (debit); Freight-In (credit) 2. Purchased inventory on credit.
c) Freight-In (debit); Accounts Payable (credit) 3. Received payment from a customer who had
d) Accounts Payable (debit); Freight-In (credit) previously bought merchandise on credit.
9. Which account is credited when merchandise is 4. Paid rent for the office space.
returned to the supplier for credit? 5. Returned damaged merchandise to the supplier
a) Inventory b) Accounts Payable for credit.
c) Purchases Returns and Allowances d) Cash 6. Sold merchandise on credit.
10. When merchandise is sold for cash, which 7. Paid salaries to employees.
account is credited? 8. Bought office supplies for cash.
a) Sales Revenue b) Cash 9. Bought equipment on credit.
c) Accounts Receivable d) Inventory 10. Sold old equipment for cash.
11. What is the journal entry to record a sale of 11. Received a loan from the bank.
merchandise on credit? 12. Purchased a delivery truck with a bank loan.
13. Recorded depreciation expense for the month
on office equipment.