6 Questions
What is the purpose of a journal in accounting?
To record daily business transactions
Which type of book of accounts is known as the book of original entry?
Journal
What does a cash disbursement journal specifically record?
Payment of cash
Which book of accounts is used for recording bad orders from suppliers?
Purchase journal
What is the purpose of ledgers in accounting?
To classify transactions to their respective accounts
What are the two main types of book of accounts mentioned in the text?
Journal and ledgers
Learn about the different types of book of accounts and how to illustrate and apply the accounting equation in simple cases. Enhance your understanding of financial transactions and their impact on a business.
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