Accounting: Journal Entries and Functions Quiz
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Questions and Answers

Which of the following is NOT a characteristic of a Special Journal?

  • It is used for recording all types of transactions (correct)
  • It is posted to the respective ledger accounts
  • It is a book of primary entry
  • It records transactions of a specific type

    • What is the main purpose of maintaining a Purchases Book or Purchases Day Book?

  • To record all sales transactions
  • To record all cash purchases
  • To record all credit purchases (correct)
  • To record all purchases returns

    • Which of the following is the purpose of maintaining a Sales Returns Book?

  • To record all cash sales
  • To record all credit sales
  • To record goods returned to suppliers
  • To record goods returned by customers (correct)

    • When would a business maintain a separate Bank Book, instead of using a multi-column Cash Book?

    <p>When the business has a large number of bank transactions</p> Signup and view all the answers

    What is the main difference between a Cash Book and a Cash Journal?

    <p>A Cash Book is a general ledger account, while a Cash Journal is a book of original entry</p> Signup and view all the answers

    According to the Golden Rule of Double Entry Book-keeping, what comes in for a Nominal Account?

    <p>Expenses and Losses</p> Signup and view all the answers

    Which of the following is NOT a type of Special Journal?

    <p>General Journal</p> Signup and view all the answers

    In the sub-division of Journal, which of the following is classified under Special Journal?

    <p>Bank Book</p> Signup and view all the answers

    When journalizing a transaction, how is a Real Account typically treated according to the Golden Rule?

    <p>Debit what comes in</p> Signup and view all the answers

    For a Personal Account, who is considered the giver according to the Golden Rule?

    <p>The receiver</p> Signup and view all the answers

    Which type of account represents Capital as per the Accounting Equation?

    <p>Liabilities</p> Signup and view all the answers

    In terms of the Golden Rule, how are Incomes and Gains treated for a Nominal Account?

    <p>Credit what goes out</p> Signup and view all the answers

    Which of the following is NOT a function of the journal in accounting?

    <p>Calculating depreciation expenses</p> Signup and view all the answers

    If a business purchases office supplies for $500 on credit, what would be the journal entry?

    <p>Debit Office Supplies, Credit Accounts Payable $500</p> Signup and view all the answers

    In the accounting cycle, which step comes immediately after journalizing transactions?

    <p>Posting to the general ledger</p> Signup and view all the answers

    If a company's equipment has a useful life of 5 years and a salvage value of $2,000, what is the annual depreciation expense using the straight-line method for an equipment that cost $20,000?

    <p>$4,000</p> Signup and view all the answers

    The purpose of a trial balance is to:

    <p>Ensure that the total debits equal the total credits in the ledger accounts</p> Signup and view all the answers

    Which of the following is NOT an advantage of using a journal in accounting?

    <p>It automatically calculates depreciation expenses</p> Signup and view all the answers

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