MCQs on Journal Entries

MCQs on Journal Entries ( Best 20+ MCQ )

MCQs on Journal Entries

Meaning

Journal entry is a record of a business transaction taking place in the accounting books of a business. It is the first step of the accounting process. A journal entry is mostly recorded in a general ledger.

Following are some of the journal entry multiple choice questions and answers that will help the students in brushing up their understanding of the concept of journal entries in accounting. Join Our Telegram Channel

MCQs on Journal Entries

MCQs on Journal Entries

Q1. Among these transactions, which transaction will have no impact on stockholders’ equity?

(a) Net loss

(b) Investment of cash by stockholders

(c) Dividends to stockholders

(d) Purchase of the land from the proceeds of bank loan

Answer: d

Q2. Amount invested by the proprietor in the business should be credit to:

(a) A/c payable

(b) Capital

(c) Cash

(d) Drawing

Answer: b

Q3. Transactions are first recorded in which book/account?

(a) Book of Original Entry

(b) T Accounts

(c) Accounting Equation

(d) Book of Final Entry

Answer: a

Q4. Customer goods returned will be credited to which account?

(a) Purchases A/C

(b) Return outward

(c) Customer’s A/C

(d) Return inward

Answer: d

Q5. Journal is also called a?

(a) A day book

(b) History book

(c) Ledger book

(d) An entry book

Answer: a

Q6. ________ A/c is credited and ____ A/c is debited in case wages are paid for construction of business premises

A) Cash, Wages

B) Cash, Premises

C) Premises, Cash

D) Wages, Cash

Answer: a

Q7. Journal lists transactions in which order?

(a) Decreasing

(b) Chronological

(c) Alphabetical

(d) Increasing

Answer: b

Q8. Among these statements which one is incorrect regarding journal entry?

(a) The debited account titles are listed first

(b) Journal entries show the effects of transactions

(c) Each journal entry should begin with a date

(d) Journal entries provide account balances

Answer: d

Q.9 Cash withdrawal from business by the proprietor should be credited to

(a) Cash account

(b) Purchase account

(c) Capital account

(d) Drawings account

Answer: a

Q10. Which one of the following is called the book of original entry?

(a) Receipt and Payment Account

(b) Trial Balance

(c) General Journal

(d) General Ledger

Answer: c

Q11. The amount brought in by owner of the business should be credited to?

(a) Owner Equity

(b) Drawing

(c) Cash

(d) All of above

Answer:- a

Q12. Which of the following transactions would have no impact on stockholders’ equity?

(a) Purchase of the land from the proceeds of bank loan

(b) Dividends to stock holders

(c) Net loss

(d) Investment of cash by stockholders

Answer:- a

Q13. Which of the following transactions occurs on daily basis in a large business organization?

(a) Purchaser of equipment

(b) Payroll

(c) Credit sales

(d) Payment of suppliers

Answer:- c

Q14. How much types a transaction has?

(a) One

(b) Two

(c) Three

(d) Four

Answer:- b

Q15. Transactions are initially recorded in the?

(a) Book of Final Entry

(b) Accounting Equation

(c) T Accounts

(d) Book of Original Entry

Answer:- d

Q16. Of the following account types, which would be increased by a debit?

(a) Liabilities and expenses

(b) Assets and equity

(c) Assets and expenses

(d) Equity and revenues

Answer:- c

Q17. Sales made to Ahmed on credit should be debited to?

(a) Account Receivable

(b) Cash

(c) Account Receivable-Ahmed

(d) Sales

Answer:- c

Q18. According to the rules of debit and credit for balance sheet accounts?

(a) Increase in assets, liabilities and owner equity recorded by debit

(b) Decrease in asset and liability are recorded by credit

(c) Increase in asset and owner’s equity are recorded by debit

(d) Decrease in liability and owner’s equity are recorded by debit

Answer:- d

Q19. In which order does the Journal list transactions?

(a) Chronological

(b) Decreasing

(c) Increasing

(d) Alphabetical

Answer:- a

Q20. All of the following are true regarding journal entries except?

(a) Journal entries show the effects of transactions

(b) Journal entries provide account balances

(c) The debited account titles are listed first

(d) Each journal entry should begin with a date

Answer:- b

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