Tag: accounting in business

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Questions Related to accounting in business

Multiple choice elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

The other name of journal is ________.

  1. Ledger

  2. T account

  3. Day book

  4. Cash book
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The other name of Journal is Day Book. 

A journal is also named the book of original entry, from when transactions were written in a journal prior to manually posting them to the accounts in the general ledger or subsidiary ledger.

Multiple choice elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

Errors are corrected via the Journal because  ____________________.

  1. It saves entering them in the ledger

  2. It is much easier to do

  3. It provides a good record explaining the double entry records

  4. It saves the bookkeepers time
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Journal provides a narrative or explanation for each entry, making it the ideal place to document the correction of errors to maintain an audit trail.

Multiple choice elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

The reason for totaling at the end of the page of a journal is ______________.

  1. It makes whole system more convenient

  2. As the calculations are lengthy it is more comfortable

  3. It is a general practice

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Totaling at the end of a page is standard practice to ensure accuracy, facilitate carry-forward to the next page, and maintain a running total of debits and credits.

Multiple choice elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

The following comments all relate to the recording process. Which of these statements is correct?

  1. The general journal is a chronological record of transactions.

  2. The general ledger is posted from transactions recorded in the general journal.

  3. The trial balance provides the primary source document for recording transactions into the general journal.

  4. Transposition is the transfer of information from the general journal to the general ledger.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The general journal is the book of original entry where transactions are recorded in chronological order. The general ledger is posted from the journal, not the other way around, and the trial balance is a summary report, not a source document.