Tag: meaning and importance of ledger

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Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Advance to supplier

  2. Bills Receivable

  3. Debtors

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

Advance to supplier, bills receivable, and debtors are all receivables (assets). Cash is a liquid asset, but the others are specifically receivables.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Work-in progress

  2. Capital Work-in progress

  3. Technical know-how

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

Work-in-progress is a current asset (inventory). Capital work-in-progress, technical know-how, and patents are non-current/fixed assets.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Rent paid to Ram (landlord), it should be credited to __________.

  1. Rent A/c

  2. Ram

  3. Landlord A/c

  4. Cash A/c
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The accounting entry will be :

Rent A/c   Dr.     
  To Ram   A/c
(Being rent paid to ram)
  • Here Rent paid will be credited in Ram's account.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Interest Received A/c

  2. Interest Receivable A/c

  3. Interest Outstanding A/c

  4. Unaccrued Interest A/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Interest received is a nominal account (revenue). The others are representative personal accounts (accruals/deferrals).

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Cash Embezzlement Account is _______________.

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cash embezzlement is a loss to the business, which is recorded as an expense.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which account is the odd one out?

  1. Land

  2. Building

  3. Furniture

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

Land is a non-depreciable fixed asset. Building, furniture, and machinery are all depreciable fixed assets.

Multiple choice elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

The return of goods by a customer should be debited to ________________.

  1. Return Outward Account

  2. Carriage Inward Account

  3. Customer's Account

  4. Return Inward Account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When a customer returns goods, it is a sales return, which is recorded in the Return Inward Account.

Multiple choice elements of accounts ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which of the following is a book of original entry and also part of the ledger?

  1. The Journal

  2. The Cash Book

  3. The Purchase Book

  4. The Sales Book
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Cash Book acts as both a book of original entry (journal) and a ledger account (for cash and bank balances).

Multiple choice elements of accounts ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

The 'Statement of Affairs' is prepared on the basis of _______________.

  1. Ledger Accounts.

  2. Ledger Accounts and estimates.

  3. Estimates.

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

A Statement of Affairs is used in incomplete records (single-entry system). It is prepared using available ledger balances and estimates of assets and liabilities.

Multiple choice elements of accounts ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

Which of the following is not opened in the General Ledger ?

  1. Drawing Account

  2. Land Account

  3. Rent Account

  4. Personal Account of a trade creditor
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Personal accounts of trade creditors are typically kept in a Subsidiary Ledger (Creditors Ledger), not the General Ledger.