Tag: introduction to ledgers

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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

Function of the ledger is _____________.

  1. to calculate the total debit and credit of the company

  2. to prepare the summary of each account

  3. to record all the transactions in a period.

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

The ledger's primary function is to summarize all transactions related to a specific account, providing a clear view of that account's status.

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

If there is a debit balance in ledger accounts than ___________.

  1. debit side of an account exceeds the credit side

  2. credit side of an account exceeds the debit side

  3. total of the debit side is more

  4. both a & c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A debit balance occurs in an account when the total of the debit side is greater than the total of the credit side.

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

Cash book is a form of _____________.

  1. Trial balance

  2. Ledger

  3. Journal

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

A cash book is a specialized journal that records all cash receipts and payments. Because it serves the function of both a journal and a ledger (as it acts as the cash account), it is classified as a 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 is an account book in which ______________.

  1. only real accounts are opened

  2. only real and personal accounts are opened

  3. all the real, personal and nominal accounts are opened

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

Business transactions are first entered in Journal or Special Purpose Subsidiary Books. The next step is to transfer the entries to respective accounts in ledger. In other word, all entries recorded in journal or special purpose subsidiary books are classified and in order to ascertain the position of a particular account, all transactions relating to that particular account are collected at one place in the ledger. In short, a ledger is a book which contains all accounts of the business enterprise whether Real, Personal or Nominal. Ledger is called the "Principal Book'. It is also called the book of final entry because the transactions which are first entered in journal or subsidiary books are finally incorporated in the ledger.

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

Loose-Leaf Ledgers are also known as _____________.

  1. Impersonal Ledgers

  2. Personal Ledgers

  3. Perpetual Ledgers

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

Loose-leaf ledgers are designed to allow for the addition or removal of pages, which is why they are often referred to as perpetual ledgers.

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

In the Sale or Return Ledger _________________.

  1. All the customers are individually debited and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  2. All the customers are debited in total and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  3. All the customers are individually debited and the sale or return account is also credited with the individual total of the Sale or Return Day Book.

  4. Any one of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In a Sale or Return Ledger, individual customer accounts are debited for goods sent on sale or return, and the total is credited to the Sale or Return account to track the status of these goods.

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

Sale or Return Day Book and Sale or Return Ledger are known as ______________.

  1. Principal Books

  2. Subsidiary Books

  3. Memorandum Books

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Sale or Return Day Book and Ledger are considered memorandum books because they are used to record transactions that are not yet final sales, serving as a temporary record.

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

Ledger is the ______ of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. 

  1. Principal book

  2. Primary entry book

  3. Third entry book

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

The ledger is the principal book of accounts where all transactions are classified and summarized by account type, making it the central record for all financial data.

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

_______ is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. 

  1. Ledger

  2. Journal

  3. Purchases return books

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

The ledger is the principal book of accounts because it contains all the accounts of a business, allowing for the classification of transactions by person, property, revenue, or expense.