Books of Accounts and Accounting Equation
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Questions and Answers

What is the primary purpose of a journal?

  • To analyze financial ratios and trends
  • To summarize account balances at the end of the year
  • To classify transactions into different accounts
  • To record daily transactions of the business (correct)

    • Which of the following is NOT a type of specialized journal?

  • Trial balance journal (correct)
  • Purchase return journal
  • Cash receipt journal
  • Sales journal

    • What is the primary function of a ledger?

  • To summarize account balances for financial statements
  • To classify transactions into their respective accounts (correct)
  • To record daily transactions
  • To analyze financial ratios and trends

    • Which journal is used to record cash payments made by the business?

    <p>Cash disbursement journal</p> Signup and view all the answers

    In which book of accounts are transactions initially recorded?

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

    Which journal is used to record sales made on credit?

    <p>Sales journal</p> Signup and view all the answers

    What is the purpose of the sales return journal?

    <p>To record bad orders from customers or goods returned</p> Signup and view all the answers

    Which journal is used to record purchases of goods or services from suppliers?

    <p>Purchase journal</p> Signup and view all the answers

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