Q.1
Ledger is a principal book that contains.
  • Real accounts only
  • Personal accounts only
  • All accounts
  • Nominal accounts only
Q.2
A general ledger account that summarises all revenue and expenses for a reporting period is the ....
  • Capital account
  • Bank account
  • Profit and Loss Summary
  • Profit Account
Q.3
Dequan's Car Detailing had cash sales of $yesterday. So far he has had $39,in Sales and has $2,in his Cash account. After posting what wiil be the new GL balances?
  • Credit Sales $40,440; Debit Cash $3,628
  • Debit Sales $40,440; Credit Cash $3,628
  • Credit Sales $35,760; Debit Cash $1,948
  • Debit Sales $35,760; Credit Cash $1,948
Q.4
Bill Stone, owner, makes a $2,draw when there was $14,in the Cash account. There wa $34,in the Capital account. He would post thus to the General Ledger as
  • $2,000 Credit Bill Stone, Draw; $2,000 Debit Cash
  • $2,000 Debit Bill Stone, Draw; $2,000 Credit Cash
  • $2,000 Credit Bill Stone, Capital; $2,000 Debit Bill Stone. Draw
  • $2,000 Debit Bill Sone, Capital; $2,000 Credit Bill Stone Draw
Q.5
The General Ledger (p. 94)
  • pages must all have an account balance >0
  • can have more than one account on a page if space permits
  • should be updated at least once a month
  • should have a page fof each account listed in the chart of accounts
Q.6
If a debit is posted to an asset account, the amount of the debit (p. 98)
  • will be subtracted from the previous balance to determine the new debit account balance
  • will be added to the previous balance to determine the new debit account balance
  • will be subtracted from the previous balance to determine the new credit account balance
  • will be added from the previous balance to determine the new credit account balance
Q.7
If a credit is posted to a liability account, the amount of the credit (p. 99)
  • will be added to the previous account balance to determine the new credit balance
  • will be subtracted from the previous account balance to determine the new credit balance
  • will be added to the previous account balance to determine the new debit balance
  • will be subtracted from the previous account balance to determine the new debit balance
Q.8
A ledger is a (p. 94)
  • group of accounts
  • form to enter transactions in chronological order
  • business paper from which information is obtained for an entry
  • a document used to record sales
Q.9
A schedule that contains all accounts needed to prepare financial statements (p. 94)
  • General Journal
  • General Ledger
  • All Sales Invoices
  • Source Documents
Q.10
Sales Returns ledger is closed to:
  • debit side of profit and loss ledger
  • credit side of profit and loss ledger
Q.11
Drawings is classified as...
  • Expense
  • Negative Equity
  • Asset
  • Liability
Q.12
The ledger that is a summary of all income and expenses is the:
  • Capital
  • Equity
  • Profit and Loss
  • Income statement
  • Balance sheet
Q.13
Which three accounts are balanced (bal c/d and b/d) at the end of the reporting period?
  • Liabilities
  • Assets
  • Equity
  • All of above
Q.14
Which side of the ledger would increase capital?
  • Debit
  • Credit
Q.15
Which side of ledger would increase drawings?
  • Debit
  • Credit
Q.16
Which side of the ledger would increase an expense?
  • Debit
  • Credit
Q.17
Among these, which item is used as the base for preparing trial balance?
  • Cash account
  • Balance sheet
  • Journal
  • Ledger account
Q.18
The ledger column that links the entry with the journal is called as.
  • J.F column
  • L.F column
  • Credit column
  • Debit column
Q.19
The process of transferring of items from a journal to their respective ledger accounts is called as.
  • Entry
  • Arithmetic
  • Balancing
  • Posting
Q.20
From which of the following is a ledger account prepared.
  • Transactions
  • Journal
  • Events
  • None of the above
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