Tag: ledger and posting

Quizzes (17) Questions (199)

Questions Related to ledger and posting

Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

Bills payable book is a ____________.

  1. subsidiary book

  2. principal book

  3. ledger

  4. memorandum book
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

There are various subsidiary books which are used to record the specific transaction pertaining to the specific activity. 

Credit sales are recorded in sales book while bills payable are recorded in bills payable book which is a subsidiary book.

Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

On receipt of promissory note, the payee records in ______.

  1. Bills Receivable Book.

  2. Bills payable Book.

  3. Journal Proper.

  4. None of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When a payee receives a promissory note, it is treated as a bill receivable and recorded in the Bills Receivable Book.

Multiple choice elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

It is a check on the accuracy of posting. If the trial balance agrees it proves that - 
1. The books are arithmetically accurate 
2. Both the aspects of the transactions have correctly recorded in the books of original entry as well as in the ledger. 
The correct answer is ___________________.

  1. $1$ but not $2$

  2. $2$ but not $1$

  3. Both $1$ & $2$

  4. Either $1$ or $2$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A trial balance only checks the arithmetic accuracy of the ledger balances. It does not guarantee that transactions were recorded in the correct accounts or that the original entries were conceptually correct.

Multiple choice elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Which of the following involves the preparation of reports and statements from the classified data (ledger) understandable and useful to management and other interested parties? 

  1. Classifying

  2. Recording

  3. Summarizing

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

Summarizing is the stage in the accounting cycle where ledger balances are used to prepare financial statements and reports for management. Recording is the initial entry, and classifying involves posting to the ledger.

Multiple choice elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Ledger book is popularly known as ____________.

  1. Secondary book of accounts

  2. Principal book of accounts

  3. Subsidiary book of accounts

  4. None of above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The ledger is referred to as the principal book of accounts because it contains all the final accounts of a business, whereas the journal is the book of original entry.

Multiple choice elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

At the end of the accounting year all the nominal accounts of the ledger book are ______________________.

  1. Balanced but not transferred to profit and loss account .

  2. Not balanced and also the balance is not transferred to the profit and loss account.

  3. Balanced and the balance is transferred to the balance sheet.

  4. Not balanced and their balance is transferred to the profit and loss account.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Nominal accounts represent revenues and expenses. At the end of the year, these accounts are closed by transferring their balances to the profit and loss account to determine net income.

Multiple choice elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

The total of the amount of the bills payable book is posted to the _____ in the ledger.

  1. Dr. of bills payable account

  2. Cr. of bills payable account

  3. Cr. of bills receivable account

  4. Dr. of bills receivable account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Bills payable is a liability. The total of the bills payable book represents an increase in liabilities, which is recorded on the credit side of the bills payable account.