10 Questions
Which term is another name for books of original entry?
Journals
What is the purpose of books of original entry?
To record financial transactions
In a double-entry bookkeeping system, how many accounts are typically affected by each financial transaction?
Two
What happens to the transactions recorded in books of original entry?
They are posted to the appropriate accounts
What is the main purpose of the general ledger?
To summarize financial activities
What is the purpose of books of original entry?
To document financial transactions in the accounting system
What are books of original entry also known as?
Journals
How many accounts are typically affected by each financial transaction in a double-entry bookkeeping system?
Two
What is the main purpose of the general ledger?
To summarize financial activities in the books of original entry
What happens to the transactions recorded in the books of original entry?
They are posted to the appropriate accounts
Study Notes
Books of Original Entry
- Books of original entry are also known as journals or daybooks.
- The purpose of books of original entry is to record financial transactions in a chronological order.
Double-Entry Bookkeeping System
- In a double-entry bookkeeping system, each financial transaction typically affects two accounts.
General Ledger
- The main purpose of the general ledger is to classify, record, and report the financial transactions and events of a business.
Recording Transactions
- Transactions recorded in books of original entry are later transferred to the general ledger accounts.
Test your knowledge on Books of Original Entry with this quiz. Learn about the role of journals or daybooks in documenting financial transactions in the accounting system.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
